Jinwoo Bae / Junyoung EumSungwan Park / Sung Yon Lee

BMW

About BMW

BMW stands for Bayersiche (Bavarian) Motoren (Motor) Werke (Works)

BMW is world’s most selling luxury vehicle com-pany

Originated with three other manufacturing compa-nies in 1916 Rapp Motorenwerke Bayerische Flugzeugwerke5 Fahrzeugfabrik Eisenach

BMW became an automobile manufacturer in 1929 The first vehicle is BMW Dixi

In 1939, BMW was suspended car production by German Government “WWII”

BMW SWOT

STRENGTH

1. Strong Market Penetration2. Brand Reputation3. Creative Automobile Design4. Race Competition

WEAKNESS

1. High Cost Structure2. High Cost Maintenance3. Weak Brand Portfolio4. Perception of High Prices

OPPORTUNITY

1. Innovation2. Green Vehicle, “Hybrid”3. New Market, Asia

THREAT

1. Intense Competition2. Rising Raw Material Price

Strength / Weakness

Expended Target Customer MINI (2000) BMW Rolls-Royce(2002)

Sales Vol-ume

2008 2009 2010 2011 2012

BMW 1,202,239 1,068,770 1,224,280 1,380,384 1,540,085

MINI 232,425 216,538 234,175 285,060 301,526

Rolls-Royce

1,212 1,002 2,711 3,538 3,575

Total 1,435,876 1,286,310 1,461,166 1,668,982 1,845,186

Strength / Weakness

2008 2009 2010 2011 20120

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

4,2043,471 3,263

3,692

5,2404,471 4,921

8,149 8,110

9,167

Capital Expenditure (in € million)Operating Cash Flow (in € million)

Opportunity / Threat

New Market Green Vehicle Asian Market

Innovation http://www.youtube.com/watch?v=2_ug4L3tA9k

Asian Market 2011 2012

Number of units sold in Asia 375,452

493,393

Number of units sold in China

233,630

327,341

Percentage (China) 14.0% 17.7%

Percentage (USA) 18.4% 18.9%

Electric Vehicle (US)

2011 2012 2013 (Jan-Oct)

Number of units sold

284,064 487,480

501,369

Market Share (%) 2.23% 3.38% 3.90%

Opportunity / Threat

Intense competition▪ Ex) Audi, Mercedes-Benz, Lexus, Volkswagen

Rising raw material prices▪ Ex) Steel, Rubber, Labor, etc…

Issue, BMW needs to face Are Mercedes Benz and Audi still BMW’s com-

petitor? BMW was crowned for 2 consecutive number one

premium automaker

Who should BMW compete against then? Porsche? Ferrari? Aston Martin?

vs.

Recommendation

Need of the even number series’ better aware-ness Most of Porsche vehicles are two-door / coupe.

Difference in designs between Sedan and Coupe To compete with higher brands, BMW needs to in-

troduce a new innovative design.

Ques-

tion?

Work Cited

"SWOT Analysis of BMW." BMW SWOT Analysis 2013. N.p., n.d. Web. 18 Nov. 2013. (http://www.strategicmanagementinsight.com/swot-analyses/bmw-swot-analysis.html)

"IKN." : 30.10.11. N.p., n.d. Web. 19 Nov. 2013.(http://incakolanews.blogspot.com/2011_10_30_archive.html)

"GOOD CAR BAD CAR." Mercedes vs BMW vs Audi. N.p., n.d. Web. 19 Nov. 2013.(http://www.goodcarbadcar.net/2012/05/mercedes-vs-bmw-vs-audi-sales-2012.html)

http://www.bmwusa.com/ http://www.rolls-roycemotorcars.com/history/ http://www.autospies.com/news/Photos-Comparison-2008-BMW-3-Series-vs-2009-3-Series-Fa

celift-33393/ http://www.bmwgroup.com/e/0_0_www_bmwgroup_com/unternehmen/historie/meilensteine/

meilensteine.html http://www.wired.com/autopia/2009/02/chris-bangle-le/ http://answers.yahoo.com/question/index?qid=1006031904010 BMW annual report in 2012 /2011 http://Porsche.com/usa/ “Promoting Electric Drive Techonologies Andinfrastructure.” Electric Drives Sales. Np., n.d.

Web. 19 Nov. 2013 (http://www.electricdrive.org/index.php?ht=d/sp/i/20952/pid/20952)