A

PROJECT REPORT

ON

“BMW”

A Project ReportSubmitted in partial fulfilment of the requirements for the Award of degree of Bachelor of Business Administration

2010 – 2011 Guided by

Submitted by: (Ms. Priyanka Garg )

MAHARAJA AGRASEN INSTITUTEOF MANAGEMENT STUDIES

Certificate from the Company/Organization

This is to certify that Mudit Jain son of

( Mr.Sanjay Jain pursuing BBA from Mahraja agrasen institute of management studies, New Delhi. has successfully completed Project Report in our organization on the topic titled, “A BUSINESS REPORT ON BMW” from __15 October___to _24 0ctober______ 2013. During

her project tenure in the organization/ company, we found him/ her hard working, sincere and diligent person and his/ her behaviour and conduct was good during the project. We wish him/her all the best for his/ her future endeavors.

Comments of Guide

1.2.

3.

Name and Signature of the Mentor ( )Designation

STUDENT UNDERTAKING

This is to certify that I _Mudit Jain had completed the Project titled “ A BUSSINES REPORT ON BMW” under the guidance of Ms.Priyanka Garg in the partial fulfilment of the requirement for the award of degree of BBA from Mahraja

agrasen institute of management studies,New Delhi. This is an original piece of work and I had neither copied nor submitted it earlier elsewhere.

Mudit Jain

Student Name and SignatureCourse

Dated -

CERTIFICATE

This is to certify that the project titled “A BUSSINES REPORT ON BMW” is an academic work done by “Mudit Jain” submitted in the partial fulfilments of the requirement for the award of the Degree of BBA from Mahraja agrasen institute of management studies,New Delhi under my guidance and direction. To the best of my knowledge and belief the data

and information presented by him/her in the project has not been submitted earlier.

Name and signature of Faculty Guide

Designation

CERTIFICATE

This is to certify that the Project titled “A BUSSINES REPORT ON BMW” is an academic work done by “Mudit Jain” submitted in the partial fulfilments of the requirement for the award of the Degree of “Course” from “Mahraja agrasen institute of management studies,New Delhi.”. It has been completed under the guidance of Ms. Priyanka Garg (Internal Guide)

Dr. KC Sharma(Director)

ACKNOWLEDGEMENT

I owe a great many thanks to a great many people who helped and Supported me during making of this project.

My deepest thanks to the guide & teacher, Ms.Priyanka Garg the Guide of the

project for guiding and correcting various documents of mine with attention and

care. He has taken pain to go through the project and make necessary correction as

and when needed.I express my thanks to the director Dr. KC Sharma of Mahraja agrasen institute of management studies,New Delhiextending his support.

My deep sense of gratitude to BMW for support

I would also thank my Institution and my faculty members without whomthis project

would have been a distant reality. I also extend my heartfelt thanks tomy family and well

wishers.

Name & signature of the student

PREFACE

This report presents the research, findings andRecommendations resulting from a project report on BMW.

The objectiveWas to compile and synthesize information on the

Status of the company, current uses,And financial projections.In so

doing, it lays the foundation for the development of aCompany inmaking cars.

The Commission’s involvement in this projectreflects its long-term interest in making a company good in making car.

Proposed Topic of the Project : Bmw Objectives of the Project : To know about the brand value of the product? Hypothesis of the Project : Company Details : leading car

manufacturing manufacturing Details : car manufacturing Brief Summary of the Project : various cars for the comfort of cars.

Name & signature of the student

SCOPE

Since the release of BMW’s official strategy back in September 2007, media sources around the world have speculated about the carmaker looking to either launch its own new brand or acquire one to help its expansion.

Instead, BMW established a new environmental think-tank dubbed 'Project i', whose task is to develop a number of solutions for a vehicle designed for congested city motoring.

The Project-I division runs independently to BMW and has been given until the middle of the next decade to develop a concrete solution for a possible range of city cars. The urbanized car for the masses connotation has lead to speculation that the Project i cars will be something low-end and cheap. Nothing could be further from the truth, according to research and development boss Dr Ulrich Kranz who revealed to Germany’s Handelsblatt that BMW will be working on bringing the Project i solutions to market completely in-House.

CHAPTER 1

AUTOMOBILE INDUSTRY PROFILE

The history of the automobile begins as early as 1769, with the creation of steam-powered automobiles capable of human transport. In 1806, the first cars powered by internal

combustion engines running on fuel gas appeared, which led to the introduction in 1885 of the ubiquitous modern gasoline- or petrol-fueled internal combustion engine. Cars powered by electricity briefly appeared at the turn of the 20th century but largely disappeared from commonality until the turn of the 21st century, when interest in low- and zero-emissions transportation was reignited. As such, the early history of the automobile can be divided into a number of eras based on the prevalent method of automotive propulsion during that time. Later periods were defined by trends in exterior styling and size and utility preferences

German engineer Karl Benz, inventor of numerous car-related technologies, is generally regarded as the inventor of the modern automobile. The four-stroke petrol (gasoline) internal combustion engine that constitutes the most prevalent form of modern automotive propulsion is a creation of German inventor Nikolaus Otto. The similar four-stroke diesel engine was also invented by a German, Rudolf Diesel. The hydrogen fuel cell, one of the technologies hailed as a replacement for gasoline as an energy source for cars, was discovered in principle by yet another German, Christian Friedrich Schönbein, in 1838. The battery electric car owes its beginnings to Hungarian Ányos Jedlik, one of the inventors of the electric motor, and Gaston Planté, who invented the lead-acid battery in 1859.

Automobile Industry in India

The first motor car on the streets of India was seen in 1898. Mumbai had its first taxicabs in the early 1900. Then for the next fifty years, cars were imported to satisfy domestic demand. Between 1910 and 20's the automobile industry made a humble beginning by setting up

assembly plants in Mumbai, Calcutta and Chennai. The import/assembly of vehicles grew consistently after the 1920's, crossing the 30,000 mark in 1930. In 1946, Premier Automobile Ltd (PAL) earned the distinction of manufacturing the first car in the country by assembling 'Dodge DeSoto' and 'Plymouth' cars at its Kurla plant. Hindustan Motors (HM), which started as a manufacturer of auto components graduated to manufacture cars in 1949.

In the early 80's, a series of liberal policy changes were announced marking another turning point for the automobile industry. The GOI entered the car business, with a 74% stake in Maruti Udyog Ltd (MUL), the joint venture with Suzuki Motors Ltd of Japan.

MUL introduced 'Maruti 800' in 1983 providing a complete facelift to the Indian car industry. The car was launched as a "peoples car" with a price tag of Rs40,000. This changed the industry's profile dramatically.

The de-licensing of auto industry in 1993 opened the gates to a virtual flood of international auto makers into the country with an idea to tap the large population base of 950mn people. Also the lifting of quantitative restrictions on imports by the recent policy is expected to add up to the flurry of foreign cars in to the country.

Many companies have entered the car manufacturing sector, to tap the middle and premium end of car industry. The new entrants are Daewoo (Matiz), Telco (Indica) and Hyundai (Santro) in upper end of economy car market. GM, Ford, Peugeot, Mitsubishi, Honda and Fiat have entered the mid-sized car segment and Mercedes-Benz is in the premium end of market.

SHEER DRIVING PLEASURE

BMW - Bayerische Motoren Werke AG, Bavarian Motor Works (English)

BMW is a German automobile and motorcycle manufacturing company found in 1916, it is known for its performance and luxury vehicles. It owns and produces the MINI brand, and is the parent company of Rolls-Royce Motor Cars.

THE BMW GROUP

With the three brands, BMW, MINI and Rolls-Royce Motor Cars, the BMW Group has its sights set firmly on the premium sector of the international automobile market. To achieve its aims, the company knows how to deploy its strengths with an efficiency that is unmatched in the automotive industry. From research and development to sales and marketing, BMW Group is committed to the very highest in quality for all its products and services.

Preface by The Chairman of the Board Of Management

Ladies and Gentlemen,

The BMW Group achieved positive group earnings for the 2009 financial year, despite the global economic crisis. The company remains the automobile industry’s leading premium manufacturer. More than 1.28 million customers purchased a BMW, MINI or Rolls-Royce last year, and over 87,000 customers bought a BMW motorcycle. Sales benefited only marginally from the national stimulus programmers initiated in many countries, such as the scrap page bonus scheme in Germany.

Our accomplishments in 2009 were realized as an independent company. We continue to chart our own course with courage and determination – and with a clear view to the future.

The image section illustrates how we are translating the four pillars of our Strategy Number ONE – Future, Growth, Customers and Profitability – into action. It also cites many examples of how we are conserving resources and gradually realizing sustainable mobility. Ultimately, companies and products are made by people. Here you can learn about the people behind our products: Who are the men and women who make up the BMW Group? Above all, you will have the opportunity to get to know our customers. Who buys our vehicles, and why? What does their BMW, MINI or Rolls-Royce mean to them?

2009 – Crisis management and innovative projects for the future.Two factors determined our actions as a company in 2009: active crisis management and innovative future projects. We acted quickly and decisively in response to the economic crisis: Vehicle inventories were reduced; fixed costs were substantially trimmed across all divisions; and several plants temporarily implemented short-time working. We also took steps to secure sufficient liquidity.

We were capable of operating effectively throughout and were able to refinance at relatively favorable rates on the capital markets at all times.

Parallel to these short-term measures, we also set the course for the successful development

of the BMW Group over the next few years – something I believe is crucial. We invested in projects for the future and our sites, in particular in Germany, the US, China and India. Our involvement in India is one of the focal points of this report. Our Strategy Number ONE lays the foundation and sets out a vision that unites everyone at the BMW Group: to be the leading provider of premium products and premium services for individual mobility in the year 2020.

This makes it quite clear that premium is, and will continue to be, our business model.

The concept of “premium” is changing, just as society and people’s lifestyles are changing. To give an example: People still want to be mobile as individuals – and there is a rising demand for mobility, especially in growth markets such as China and India. But people all over the world are becoming more interested in how efficient their vehicle is.

Our Efficient Dynamics measures have drastically reduced fuel consumption and CO2 emissions across our entire fleet. Would you ever have believed that BMW could be the world’s most environmentally friendly premium brand? Or that the average fleet consumption of the BMW and MINI fleets could be lower than that of the mass manufacturers – even though they offer much better performance? The statistics of the German Federal Motor Transport Authority are unequivocal: Average CO2 emissions for new BMW and MINI vehicles registered in Germany in 2009 were no more than 156 grams of CO2 per kilometer. That represents an average fuel consumption of 5.9 liters per 100 kilometers.

We will continue to push ahead with Efficient Dynamics.For the BMW Group, the year 2010 will largely be defined by the new BMW 5 Series. I personally believe that the new BMW 5 Series is one of the best cars we have ever built. Currently, the vehicle with the best fuel economy and lowest emissions in the BMW model range is the 320d Efficient Dynamics Edition. Customers will be able to experience its sheer driving pleasure with a fuel consumption of just 4.1 liters per 100 kilometers and 109 grams of CO2 per kilometer from spring 2010 onwards. We showcased everything that Efficient Dynamics still has to offer at the 2009 IAA International Motor Show within our BMW Vision Efficient Dynamics. This concept car rightly attracted a great deal of attention – not just for its futuristic design, but also for its innovative drive train, comprising a 3-cylinder turbo diesel engine with two electric motors mounted on both axles. Consequently, this thoroughly sporty vehicle consumes an average of just 3.76 liters per 100 kilometers. This technical masterpiece is highlighted further in detail.

New drive technologies: hybridization and electrification.We also believe premium means offering our customers new technical solutions. The first two BMW models with hybrid drive will become available in 2010. Our worldwide MINI E customer test has so far been a resounding success. There are about 600 MINI cars with electric drives currently on the roads. No other electric car has clocked as many kilometers and as many miles as the MINI E. Our customers think it is terrific. They are helping us learn how e-mobility can succeed in everyday situations. We also presented the first BMW with electric drive, and will be releasing a further trial fleet of electric vehicles based on the BMW Concept Active E concept car to customers next year.

All of the experience we gain will be incorporated into our Megacity Vehicle. This is much more than just a highly innovative car. We aim to completely redefine how cars are built – with regard to vehicle architecture, lightweight construction and use of materials – to create a sustainable value chain.

No automobile manufacturer uses resources more efficiently.Everybody is talking about sustainability – when action is what is needed. We believe our vehicles should also be produced in an environmentally responsible manner. In September 2009, the Dow Jones Sustainability Index named the BMW Group as the leading company in the automobile sector for the fifth consecutive year. For us this is both an incentive and an obligation. We are committed to sustainability in all areas.

That is why we decided to send a clear signal and withdraw from Formula One at the end of the 2009 season – although it was not an easy decision after ten years of successfully competing at the highest level in motorsports.

New directions with Strategy Number ONE.We are taking a new direction with our Strategy Number ONE. The small car segment represents a source of growth opportunities, and we will therefore be offering premium products for these customers. Collaboration with others will also allow us to achieve economies of scale. We will continue to rely on strategic partnerships with the best partners for the task at hand. What is more, increased use of shared modules between models and brands will enable us to further reduce costs throughout the entire process chain, but still maintain our high quality.

Our industry is currently in a period of tremendous upheaval and technological change. The economic crisis has further accelerated this trend. In order to be successful in the marketplace, companies must find the right answers to the challenges of tomorrow. Our ideas and actions are geared towards the long term. Our strategy provides us with the plan for shaping our own future.

We achieved a great deal in 2009. I would like to thank every single one of our 96,230 employees for their outstanding personal dedication. I would also like to thank our customers for their confidence in our products and our company, as well as our entire retail network. We have also continued to work productively with our suppliers. Last but not least, I would like to thank our shareholders and investors for their commitment to the BMW Group – particularly in these times of economic crisis.

The effects of the economic crisis will continue to be felt in 2010. However, we are cautiously optimistic that we will be able to resume our growth path this year.

We believe in the future of individual mobility – and we are already creating it.

Norbert ReithoferChairman of the Board of Management

COMPANY HISTORY

Era Of Aircrafts (1918) “The First Flight”After World War I, BMW were forced to cease aircraft (engine) production by the terms of the Versailles Armistice Treaty. The company consequently shifted to motorcycle production in 1923 once the restrictions of the treaty started to be lifted, followed by automobiles in 1928.

The circular blue and white BMW logo or roundel is often alleged to portray the movement of an airplane propeller, to signify the white blades cutting through the blue sky - an interpretation that BMW adopted for convenience in 1929, which was actually twelve years after the roundel was created. 

Era Of Motorcycle (1923):-“Face The Power, The Ride Is On”BMW began building motorcycle engines and then motorcycles after World War I. Its motorcycle division is now known as BMW Motorrad. Their first successful motorcycle, after the failed Helios and Flink, was the "R32" in 1923. Many BMWs are still produced in this layout, which is designated the R Series.

In 1983 came the K Series affectionately known as "The Flying Brick", shaft drive but water-cooled and with either 3 or 4 cylinders mounted in a straight line from front to back. In the early 1990s, BMW updated the airhead Boxer engine which became known as the oil head.

In 2004, BMW introduced the new K1200S Sports Bike which marked a departure for BMW. It is both powerful and significantly lighter than previous K models. Innovations include a unique electronically adjustable front and rear suspension and a Hossack-type front fork BMW call Duo lever

Era Of Automobiles ( 1928) :-”The Ultimate Driving Machine”

The New Class was a line of compact sedans and coupes starting with the 1962 1500 and continuing through the last 2002s in 1977.Powered by BMW's celebrated four-cylinder M10 engine, the New Class models featured a fully independent suspension, Macpherson struts in front, and front disc brakes. Initially a family of four-door sedans and two-door coupes, the New Class line was broadened to two-door sports sedans with the addition of the 02 Series 1600 and 2002 in 1966.Sharing little in common with the rest the line beyond power train, the sporty siblings caught auto enthusiasts' attention and established BMW as an international brand. Precursors to the famed BMW 3 Series, the two-doors' success cemented the firm's future as an upper tier performance car maker.New Class four-doors with numbers ending in "0" were replaced by the larger BMW 5 Series in 1972. The upscale 2000C and 2000CS coupes were replaced by the six-cylinder BMW E9, introduced in 1969 with the 2800CS. The 1600 two-door was discontinued in 1975, the 2002 replaced by the 320i in 1975.

CHAPTER -2

The Automobile Industry Stats

BMW and the five major companies in 2008-09

Company No of vehicles (m) Euro(b)

General Motors 8.5 157.19

Ford 6.7 116.47

Daimler-Chrysler 3.85 144.65

Toyota 6.25 125.30

Volkswagen 5.02 87.15

BMW Group 1.12 41.52

COMPETITORS IN MARKET

BMW BIRDS (PRODUCTS)1 Series

The 1 Series was launched globally in autumn 2004 and shares many structural, chassis, power train, hardware and electronic elements with the larger 3 Series. The model was started to provide a lower point of entry into the BMW range as the 3 Series moved gradually up-market. The 1 Series coupe and convertible went on sale in the United States in model year 2008 as the 128i and the 135i.

BMW 1 Series 5-door BMW 1 Series CoupeBMW 1 Series Coupe

3 Series

The BMW 3 Series is an executive car manufactured since model year 1975. The 3 Series is currently in its fifth generation, the E90 Current models include the sport sedan (E90), station wagon (E91), coupe (E92), and convertible (E93). It offers luxury. The 3 series is one of BMW's most important models, as it accounts for a majority of its worldwide sales.

2007 3-Series Coupe 2006 3-Series Touring 2006 3-Series Sedan BMW E46 Generation with ZHP Performance

5 Series

The M5 is the Motorsport division's version of the 5 Series. The new M5 is powered by a F1-inspired V10 engine, producing 507 hp (378 kW) and is mated with a 7-speed sequential manual gearbox (SMG) transmission, which is capable of a top speed of about 330 km/h (production variants are restricted to 250 km/h, or 155 mph).

2005 5 Series with M Sport Package 2007 5-Series Touring

with M Sport Package2007 M5 E39 BMW M5

Sedan

7 Series

BMW 7-Series (F01)

BMW's full-size flagship executive sedan. Typically, BMW introduces many of their innovations first in the 7 Series. For example, the somewhat controversial iDrive system debuted in the 7 Series. The 7 Series Hydrogen, featuring one of the world's first hydrogen fuelled combustion engines, is fuelled by liquid hydrogen and emits only water vapour. The V12 engine also runs on gasoline. Numerous engines power the 7 Series worldwide. BMW offers diesel, straight 6, V8 and V12 motors, as well as the Alpinatuned supercharged V8.

X SERIES SUVS

X3

BMW X3 (current generation)

BMW's second crossover SUV debuted in November 2003 as a Model Year 2004 (called SAV or Sports Activity Vehicle by BMW) and is based on the E46/16 3 Series platform. For 2007, the X3 is powered by the N52 inline 6 cylinder engine that debuted on the 2006 E90 3 Series. In 2007 a face lift was given to the X3, including an X-drive update, suspension adjustments, an engine upgrade, and aesthetics inside and out.

Z Series

Z4

A 2-seater roadster and coupe which succeeded the Z3. From 2006 the Z4 Roadster is available as a 3.0i (3.0 L I6 with 215 hp), a 3.0si available with the new generation 3.0 L I6 with 255 hp (190 kW), a 2.5si with a 2.5 I6 with 218 bhp (163 kW) or a 2.0i with a 150 bhp (112 kW) 2.0 L I4. The Z4 coupé is available only in the high-performance 3.0si trim powered by the 3.0 L 255 hp (190 kW) I6. The Z4 (E84) was built at the Spartanburg plant. Its successor, also named Z4 (E89) - this time a coupé-convertible with folding hardtop- will be built in Regensburg alongside the (E93) 3-Series Cabrio.

Z4 M The new Z4 M roadster and coupe have been released with an E46 M3 motor (3.2 L,

333 hp) and also features the M braking, suspension, and styling characteristics.

2006 Z4 Roadster 2006 Z4 Coupe2007 Z4 M Roadster

M SERIES

BMW M

M3

E92 M3 Coupé

Based on the 3 Series, the M3 defined an entirely new market for BMW: a race-ready production vehicle. Since its debut, the M3 is heralded in enthusiast circles, in large part due to its unique geometry and award winning engines. The newest platform became available the Autumn of 2007 in Europe, and second quarter of 2008 for the U.S. in Coupe (E92), and later the Cabriolet (E93), and Sedan (E90) variants.

M6

BMW M6 Coupe

The M6 is the M division's version of the 6 Series. The M6 shares its drive train with the M5. The V10 produces 508 hp (379 kW) and 383lb/ft (520Nm) of Torque. The production M6 debuted at the 2005 Geneva Motor Show. It is currently available in a coupe and a convertible version. There is speculation that an M6 CSL version is to be released in the future.The vehicle is based on the 6 Series coupe and convertible, which were launched in 2004.

Carbon fiber and other light materials are used in places like the bumpers and roof that are far from the centre of gravity and/or high up, so that they not only reduce the overall weight but improve the handling by reducing the moment of inertia and the centre of mass height.

The previous generation was launched in 1983, but ended in 1989 with around 5,855 sold.

MINI

Mini (styled as MINI) is a British automotive brand owned by the BMW Group that has produced the successor of the original Mini in Oxford, England since April 2001. Currently three body variants are available: hatchback, convertible and Clubman.

The car, whose first generation was designed by Frank Stephenson, is drawing inspiration from the original Mini, which was manufactured by the British Motor Corporation and its successors from 1959 to 2000. The name of the car's brand, MINI, is all-capitalized to distinguish it from its predecessor.

The development of the first generation had been done between 1995 and 2001 by Rover Group in Gaydon, United Kingdom and BMW AG in Munich, Germany and was accompanied by continual contention between Rover and BMW. Especially the positioning of the car was contended. Rover wanted an economy car, whilst BMW supported a small sporting car and finally prevailed. In 1999 BMW assumed control over the whole project after BMW's CEO Bernd Pischetsrieder had left the company.  When BMW divested itself of Rover in 2000, BMW decided to keep the Mini project and to build the car, which was originally to be built at Rover's Long bridge plant, [3] the former production plant of the traditional Mini, at BMW's Oxford plant in Cowley, Oxford, United Kingdom, in what was historically the Pressed Steel Company body plant.  The 2001 to 2006 model years included four hatchback models: the basic "Mini One", the diesel-engine "Mini One/D", the sportier "Mini Cooper" and the supercharged "Mini Cooper S". The Mini was designed and engineered to replace the long running Rover 100 and the larger Rover 200, both deemed unsuitable for the modern world automobile market. The Mini was supposed to replace low-end models of the 200 and high-end models of the 100 with a Rover 35 replacing high end 200s and low end 400s. After the divestment of MG Rover, the Mini was instead marketed as a small yet desirable city car rather than a mainstream replacement of the 100 and 200.

ROLLS-ROYCE MOTOR CARS 

Rolls-Royce Motor Cars is a British manufacturer of luxury automobiles based in Goodwood, England. It is the current producer of Rolls-Royce branded automobiles, whose historical production dates back to 1904. The factory is located across from the historic Goodwood Circuit in Goodwood, West Sussex, and England. It is a wholly owned subsidiary of the BMW Group.

In 1998, owners Vickers decided to sell Rolls-Royce Motors. The most likely buyer was BMW, who already supplied engines and other components for Rolls-Royce and Bentley cars, but BMW's final offer of £340m was beaten by Volkswagen's £430m.

A stipulation in the ownership documents of Rolls-Royce dictated that Rolls-Royce plc, the aero-engine maker would retain certain essential trademarks (the Rolls-Royce name and logo) if the automotive division was sold. Rolls-Royce plc chose to license not to VW but to BMW, with whom it had recently had joint business ventures. VW had bought rights to the "Spirit of Ecstasy" hood ornament and the shape of the radiator grille, but it lacked rights to the Rolls-Royce name necessary to build the cars. Likewise, BMW lacked rights to the grille and mascot. BMW bought an option on the trademarks, licensing the name and "RR" logo for £40m, a deal that many commentators thought was a bargain for possibly the most valuable property in the deal. VW claimed that it had only really wanted Bentley anyway.BMW and VW arrived at a solution. From that date, only BMW would be able to name cars "Rolls-Royce", and VW's former Rolls-Royce/Bentley division would build only cars called "Bentley". The Rolls-Royce's Corniche ceased production in 2002.

Environmental Record of BMW

The company is a charter member of the U.S. Environmental Protection Agency's (EPA) National Environmental Achievement Track, which recognizes companies for their environmental stewardship and performance. It is also a member of the South Carolina Environmental Excellence Program and is on the Dow Jones Sustainability Group Index, which rates environmentally friendly companies. BMW has taken measures to reduce the impact the company has on the environment. It is trying to design less-polluting cars by making existing models more efficient, as well as developing environmentally friendly fuels for future vehicles. Possibilities include: electric power, hybrid power (combustion, engines and electric motors) hydrogen engines. 

What Critics Says?

“There have been some criticisms in past directed at BMW, and in particular, accusations of green wash in reference to their BMW Hydrogen 7. Some critics claim that the emissions produced during hydrogen fuel production outweigh the reduction of tailpipe emissions, and that the Hydrogen 7 is a distraction from more immediate, practical solutions for car pollution.”

Innovations /Progress

All Wheel DriveAll-wheel drive means traction, directional stability and driving safety. With BMW  xDrive , it also means driving pleasure. On dry tarmac, xDrive transfers 40% of the torque to the front wheels and 60% to the rear, allowing the car to retain the sporty handling characteristics you'd expect from a BMW. If the situation or surface changes, xDrive redistributes torque within milliseconds to prevent over- or under steer at the onset. It's the perfect blend of safety, traction and agility.

Active Steering.

Active Steering adjusts the steering ratio and weight to the car's speed. At low or medium speeds, it translates steering input directly for easier parking in town and enhanced agility in bends. At high speeds, the amount the wheel needs turning increases, resulting in greater directional stability - on motorways for instance - and therefore safety. It means optimum feel and maximum enjoyment, whatever the speed and situation.

DISTRIBUTION CHANNEL OF BMW

BMW is an automobile dealer that manufacturers and sells a wide range of vehicles.

The BMW automobiles are sold to a special target market and appeals only to a particular stratum of people. BMW vehicles are classy, stylish, comfortable and luxurious. With regard to the BMW films, which can be viewed on www.bmw.com, there are a number of reasons surrounding the success of these films. The films allow prospective customers to view the

cars before purchasing them. Marketers ensured that the visitors to the site felt compelled to stay at the site. They associated each model of the vehicle to that of human attributes.

For example, the BMW Formula M was described as having a ‘soul’. When consumers see these attributes, they suddenly begin to identify with these attributes, and then create an image and personality of the vehicle for themselves, by also giving the vehicles personal human traits as well. The site also offers consumers the option of customizing their own vehicle to their preference and taste.

Another reason the BMW site and films have increased sales for the company is that marketers have used dynamic features for the site. The site is portrayed as a type of one-stop shopping, because not only are BMW vehicles showcased, but an online magazine is on the site. If visitors to the site do not wish to make a purchase, they may opt to view the online magazine. Marketers embarked on an intense Integrated Marketing Campaign that gave rise to increased interest and traffic to the BMW site. 

Integrated Marketing Communication (IMC) is a strategy used to plan, execute and monitor communication about a brand. In addition, the IMC is aimed at attracting and retaining customers. The marketers of the BMW site had to have extensive knowledge of the brand, competitors and target audience. Through the IMC plan on the Internet, marketers were able to use a direct marketing channel to reach it target audience.

In addition, the type of distribution channel that was employed by marketers on the BMW website was to perform the facilitating function, where contact was made with buyers, the needs of buyers were matched with the product and they had ideal communication strategies to ensure effective information transfer.

The success of the BMW films also include the that fact that each Vehicle is presented with the possible fuel consumption information as well as the model of the vehicle that would be most appropriate for the consumer based on the model chosen and the consumer’s lifestyle. When marketers cater to the needs of customers and a positive perception of the brand has been created, the success of the product is inevitable.

UNITS DELIVERED

Cars delivered by the BMW Group in 2008-09 (1000 units)

0

200

400

600

800

1000

1200

POSITION IN THE MARKET:-

The German carmaker is revving up sales….. ….Overtaking Lexus in the US…..

0

10

20

30

40

50

60

70

94 95 96 97 98 99 00 01 02 03 04*

Billions of dollars

*Forecast by Lehman Brothers

0 20 40 60 80 100

Porsche

Jaguar

Audi

Infiniti

Volvo

Acura

Cadillac

Mercedes

Lexus

BMW*

Luxury Model auto sales January through April

* Including 11,304 minis

Operating Margin*

Porsche 15.8%

Nissan 11.0%

Toyota** 8.5%

BMW Group 7.4%

Volkswagen Group 6.1%

Mercedes & Smart cars 5.8%

PSA Group 5.4%

Volvo Group 2.5%

Renault Group 2.3%

Chrysler cars & trucks 1.5%

PROMOTIONAL FIGHTS BETWEEN BIG PLAYERS

COMPANY’s STRATEGY

OBJECTIVES

As a person with knowledge of business strategy, the author has always brought up to his

superiors the viability of strategy formation regarding the analysis of this topic and at times

fails to understand the reasons or logic behind certain strategic implementations imposed on

it.

By delving into this project paper, the author intends to have better insights into how business

strategy is thought up, formulated and then imparted down into the subsidiaries of the

company or organization. The author hopes to have an in-depth understanding as to how the

implementation of business strategies enables companies and organizations to compete

effectively and profitably in this era of internationalization where competition is extremely

intense.

In order to reinforce the learning objectives, two key focal issues were focused upon, i.e.

innovation and diversity. Innovation was discussed with regard to business strategies where

they were renowned for their developmental capabilities to constantly innovate. Diversity

came under strategic thinking and formation as the author considered the diverse culture,

political climate, economic surroundings, social environment, technological settings,

government policies and legal systems in its bid to become a leading player in order to better

understand the issues being discussed.

EXECUTIVE BRIEF

This essay utilized BMW as the model organization to review its present business strategies

and how they dealt with critical situations. From the analysis, key trends in the business

strategies of BMW were then identified, how they worked and their effectiveness in dealing

with critical situations was ascertained. The paper then moved on to assess these business

strategies with regard to their suitability to critical situations, during which the internal

capabilities of these business strategies in relation to the strategy being followed by BMW

was determined also. An overall analysis of the performance and effectiveness of the business

strategies of BMW was also conducted to assess and compare the capabilities of these

business strategies with those of others. Gaps in the capabilities and environment were then

identified.

Finally, several choices of strategies to improve the business strategies of BMW as effective

means in critical situations were recommended and evaluated in terms of appropriateness to

the issues reviewed, feasibility in carrying out the options and acceptability within the key

stakeholders and decision makers. Several key implementation issues related to managing

strategic change were also addressed as well.

OVERVIEW OF BMW

BMW aims for sustainable growth as a broad market leader in the automobile

industry as well as for segment leadership. In both cases, the automobiles of BMW will play

a crucial part. BMW is able to establish its broad leadership usually by acquiring other strong

automobile companies and their cars, which are then combined into a new, larger company.

Offering training to its employees, improving the company operations, and the introduction

of new car technologies then reinforces the positions of the various BMW automobiles. This

practically results in economies of scale that is able to create a distribution network for both

the local and international BMW automobiles. If a market is already in the control of other

automobile companies, BMW devotes its attention towards the development of a premium

segment with its various automobiles.

            The mission of BMW is to secure the growth of the business in a sustainable manner,

while at the same time constantly improving the company’s profitability. The strategy to

achieve this involves four elements:

1. Striving in order to reach a leading position in attractive markets

2. Focusing on securing a competitive share of the automotive market segments.

3. Working in order to improve the company’s efficiency and cut costs in operations.

4. Continuous growth through selective acquisitions for as long as they are able to create

shareholder value. 

1. What is the organization’s strategic position?

 BMW’s generic strategy in the automotive market lies on product differentiation. The

differentiated automobiles and motorcycles of BMW are able to satisfy the needs of their

customers through a sustainable competitive advantage. This allows BMW to desensitize the

prices of their automobiles and motorcycles and instead focus on the values that generate not

only a comparatively higher price but also a better margin.

BMW is committed on its efforts to continuously develop original automotive technologies

that generate a high appeal to the general public due to its quality and cost effectiveness.

Over the years, BMW has been able to build a substantial base meant to boost the company’s

designing and manufacturing capabilities. This enables the company to bring to markets truly

original and more importantly efficient automotives that are reasonably priced. The research

and development team of BMW also plays a crucial role in the achievement of this feat. The

company also believes that making a positive impact in the society through their quality

products is the very essence of being a manufacturer.

BMW has been able to maintain its reputation as one of the world's leading

automotive companies for more than 130 years now. It is able to face the challenges

in many of its markets directly. This is made possible by the effective generic

strategies aimed to deliver not only profit growth, but also on building down the

foundation of BMW’s brands and business.

The generic strategies of BMW are focused mainly on driving the growth of its

brands and improving the company’s financial performance. These campaigns have

also helped secure significant acquisitions and partnerships. And more importantly,

these campaigns have led to the release of the potentials of the company’s

employees, thus building a quality performance- based culture.

The generic strategies of BMW’s local automotives are practically reinforced by the

local employees themselves. These moves certainly allow the company to improve

even more without the costs of introducing new technologies. These efforts have

resulted in increased financial gains for the company and have allowed the

establishment of distribution networks for both the local and international BMW

products.

2. What are the key external drivers of change affecting the organization?

A. PEST Analysis

Political Trends

Germany has experienced electoral and political transitions and crises in the last 12

months.  There have been at least four political trends that have emanated from these political

events. These are: (a) the cry for democracy and reforms; (b) increased popular and local-

level assertiveness; (c) greater public accountability; (d) re-definition of the concepts of

power and politics. Also, the forms of political economies have slowly shifted from a bipolar

(big government-big business) to a tri-polar structure (authorities - private sector – civil

society).

  The implementation of the Free Trade Area, or FTA, which laid out a comprehensive

program of regional tariff reduction, will be continuously implemented in phases through the

year 2008. Over the course of the next several years, the programs in tariff reductions were

made broader. Efforts to eliminate non-tariff barriers and develop common product

certification standards were initiated. In addition, the Germany also was able to formulate

framework agreements for the intra-regional liberalization of trade in services. Industrial

complementation schemes meant to encourage intra-regional investment were also approved

(1984).

Economic Trends

Despite the adverse economic trends in the first half of the year, Germany as a whole

experienced relatively robust economic growth. It is estimated that Germany posted a better-

than-expected GDP growth of 4.5% last year, slightly higher than the 4.1% growth that they

achieved in 2005.

Many German cities have also seen the risk-weighted capital adequacy ratios of their

banking systems improve due to government-sponsored bank recapitalization programs,

continued progress in financial restructuring, and improvements in financial risk management

( 1999). The capital adequacy ratio of commercial banks in Germany is now far higher than

the 8% Basle norm. It ranges from about 14% in Berlin to about 20% in Dortmund, with

commercial banks reporting an average capital adequacy ratio of about 18%.

Social/Cultural Trends

With the rise in the middle to upper-middle class households in certain cities within

Germany, there exists a strategy mismatch for not considering the potential for consumer

market.

There have also been social and cultural trends that have been evident over the last 12

months. These include: (a) the irreversible rise of civil society among German cities; (b) the

rise of civil society blends perfectly with a tri-polar structure of political economy; (c) the

increase in the roles of intellectuals; and (d) the beginning of a period of introspection.

Technological Trends

It is a common knowledge that the automotive industry in Germany is still a relatively

new industry and is still in its early stages of development. However, it has shown signs of

rapid growth and it is being estimated that there will be more than a million automobiles that

will be shipped within the year. And it is further being expected that within the next years the

tremendous growth and technological advancements will continue in the automobile world.

Therefore, the continued growth and development will also make it imperative for

localization to occur in the automotive industry in the years to come (1998).

B. Five Forces Analysis

A.   Intensity of Industry Rivalry

BMW is one of the world's leading manufacturers of automobiles and motorcycles.

Around eighty (80) percent of automotives in Germany operate on a BMW engine system.

Mercedes-Benz is the only major competitor with a share of sixteen (16) percent. Of the

major competitors, Acura and Jaguar are both using BMW’s engine system, and hold about

7% and 14% market shares respectively. Other competitors, such as Volvo and Audi, use

BMW's engine system, but both companies have below 10% market share. BMW has had so

much success in the consumer market, but the future goals include selling more products to

corporations.

B. Threat of New Entrants

New entrants in the automotive industry will have to deal with high costs of entry for

their latest technologies. Most of BMW’s major competitors have yet to establish strong

distribution channels. This will severely hamper their plans to retaliate with their

technological developments as without distribution channels, their products would never be

seriously considered in the automotive market by customers. BMW must worry though about

certain government laws in countries that might weaken its competitive position.

C. Bargaining Power of Suppliers

Suppliers of automotive products other than BMW have relatively lower bargaining

power because their products have yet to establish consistency in the market. This is in

contrary to BMW brands where these products have been able to secure the confidence of its

customers worldwide.

D. Bargaining Power of Buyers

A majority of BMW customers are professionals who rely on automobiles and expect

no less than the best riding experience every time they use them. For instance, a customer

phones in a service request from the New York airport while boarding a plane bound to Paris

the same day. The technical people of BMW in New York will immediately work on the car

service request of the client. And when that client arrives in Paris, he / she would be able to

call the BMW New York service center and pick up exactly where he / she left off. The

bargaining power of buyers in the automotive industry is relatively high because aside from

BMW, there are only few, large players in their industry.

E. Threat of Substitutes

There are very little threats that could emerge from possible substitutes.  This is because

product-for-product substitution could not possibly happen especially with BMW products.

Other automobile products cannot simply replace the ingenuity of the established BMW

products in the market. Also, the millions of users of BMW products surely would find it too

uncomfortable using other automobile products other than BMW automobiles.

3. How does the organization add value?

The product differentiation strategy of BMW will definitely be advantageous on any

part of the value chain analysis. For instance, BMW’s efforts to gather primary information

that are unique and unavailable to most of its competitors have successfully initiated

differentiation. The product differentiation strategy of BMW comes from its uniqueness. The

differentiation advantage of BMW is achieved either by changing their individual value chain

activities in order to increase the level of uniqueness of the final BMW product or by

reconfiguring the value chain.

BMW bases its pricing strategies on several key trends that continuously shape the

global marketplace of automotives. One particular trend is labeled as “premium-tization”

(1981). This phenomenon causes the polarization of different markets. This would then

trigger the consumers to demand and pay much higher prices for perceived quality. However,

discounting in prices is also simultaneously taking place, therefore squeezing out the middle

range. More often than not, automotive companies undergo internationalization which leads

to a tighter squeeze for shelf space. This will in turn leave BMW as a winner. It is for this

reason why BMW values the “premise sector” so much because this would allow consumers

can to try their brands at low risk and price.

In terms of market segments, luxury and specialty automotives of BMW with higher

engine powers have a disproportionate share of volume growth at an estimated 4-5% per

year, as against the 2-3% overall growth rate. These rates come up as a result of both the rise

in GDP among developing markets and consumer demands for higher value propositions,

which is obviously dominated by international brands. Therefore, BMW has to increase its

portfolio and operate globally to overcome the home market. BMW practically operates on a

relatively fragmented market, with the top four automotive companies accounting for 22% of

global automobile manufacturing five years ago and only about 28% today.

The Markets

The main markets for BMW automobiles have been in Europe, the USA, Japan and the Pacific region, with the markets of Germany and the US accounting for almost half the total car sales. Important markets have also been the fast-growing UK, and the Italian, French and Japanese markets. Sales in the USA market have been particularly successful, as they grew by over 8 per cent on the previous year to 277,000, becoming the biggest market for the group and overtaking the Lexus brand for the first time. At the end of 2003, the outlook for 2004 by group management and industry observers was upbeat. This view was supported by the successful launch of the new 5-series, the consolidation in Europe and Asia of the BMW Z4, the introduction of the BMW X3. The new BMW 1 Series and the BMW 6 Series cabriolet were launched early in 2004. By far the most successful models were the MINI, the 3-series and the 5-series, but the other models were also in significant demand. In the Chinese markets there was growing demand for the higher end models of the range, specifically for 7-series and 5-series.

“We offer our customers emotional products, which, through the strength of the brand and the substance of the product, fulfill the customer's wish for individualization and differentiation. The BMW Group will never build boring products.”

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VIEWS OF OWNERS

GLOBAL BRAND IMAGE

First, let’s take a look at BMW in context of the global automobile industry. In recent decades, the industry has undergone significant consolidation among manufacturing enterprises. From multiple acquisitions by Ford to the Daimler-Chrysler merger, many automakers now enjoy economies of scale and global distribution networks that afford significant advantages in procurement, R&D, manufacturing, and distribution.

The synergies borne by these scale economies allow larger manufacturers to better weather fluctuations in the macro-economic environment, yet profit from the evolving needs of the car consumer. For instance shifting production away from gas-guzzling SUVs to more economical automobiles helps manufacturers profit in years where oil prices rise; while developing innovative brands and designs can satisfy new segments of consumers who will pay premium dollars for differentiated features and styles. Manufacturers that cannot rely on scale to deliver profitable returns need to ensure that their brands and limited product lines remain highly differentiated and relevant, and continue to aggregate a growing consumer following in the face of sophisticated competition.

Even without a degree in microeconomics, you can get a sense of the relative advantage among various manufacturers by examining the sector chart below.

DID YOU KNOW?

A.BMW AG bought the British Rover Group in 1994 and owned it for six years. B. In year 2000, Rover was making huge losses and BMW decided to sell the combine. The MG and Rover brands were sold to the Phoenix Consortium to form MG Rover, while Land Rover was taken over by Ford. C.BMW built mini in 2001D.BMW was one of the earliest manufacturers to offer anti-lock brakes on production motorcycles starting in the late 1980s. E. BMW Sponsors Kumho BMW Championship  in UK every year.

Formula One  - BMW has won 19 grand prix as an engine supplier..

Sports car

Le Mans 24 Hours  - BMW won Le Mans in 1999 with the BMW V12 LMR designed by Williams Grand Prix Engineering.

24 Hours of Daytona  - BMW won 1 time (1976)

Rally

RAC Rally  - The 328 sport car won this event in 1939. Paris Dakar Rally  - BMW motorcycles have won this event 6 times.

Tour De Corse  - The BMW M3 - E30 won this event in 1987

CHAPTER 3

CORPORATE SOCIAL RESPONSIBILITY

BMW is the first company in its industry to ever produce a CSR Annual Report, which summarizes its achievements in "Corporate Social Contribution Activities" revolving around 'five pillars' – Cultural Promotion, Education Support, Environmental Protection, Corporate Governance and Customer Integration. The report also highlights the significance of the activities in BMW's long-term corporate development, building a win-win situation within society. Highlight 1: Cultural PromotionBMW China and BMW Brilliance jointly launched 'BMW Corporate Social Contribution Activities' in the summer of 2007, dedicating a large budget to promote nearly 20 projects within 'five pillars'. Among them, "BMW China Culture Journey 2007" was the most attractive and impactful project. During the exciting, 11-day journey covering over 3,500 kilometres, a fleet of 15 BMW vehicles drove all the way from Beijing to Dunhuang and visited 11 "Material Cultural Heritage Projects" and 17 "Non-Material Cultural Heritage Projects". A total of 1 million RMB was donated to provincial cultural departments. The event called for the protection and restoration of state-level and provincial-level cultural heritage sites and cultural practices, and was warmly-received nationwide. The CSR Annual Report notes that as an important part of BMW's Corporate Social Contribution Activities, the culture journey will continue in years to come. In addition, in promotion of cultural communication and the arts, BMW also sponsored several cultural promotion projects, including 'BMW Culture Night and 'BMW Night', featuring performances by the Liaoning Ballet Tour Show and world renowned violinist Lv Siqing.Highlight 2: Education SupportAs the key project in education support, BMW launched a long-term "BMW Children's Traffic Safety Education" program. By providing transportation safety education through attractive and engaging methods to over 2000 kids aged four to six years over 15 key cities, the safety training camp generated a great amount of attention to children's traffic education and transportation safety. Through this project, BMW has proven to be an industry leader in children's traffic safety education. Meanwhile, BMW is also actively promoting a five-year "BMW China Scholarship for Outstanding College Students" project in cooperation with the Song Qing ling Fund by providing scholarships totalling 2.5 million RMB to 500 outstanding students from 10

universities. 2007 was the third year of this five-year project. Apart from funding 100 distinct college students per year, BMW also provided internship opportunities to 10 select students at its Shenyang Plant. So far the project has received wide support and appreciation from teachers and students.

Lighting up "The Flame of Life."

BMW personnel compose a song to show their support to children affected by the earthquake.

"Let's stand shoulder to shoulder, lighting up the flame of life / Together embracing the bright future". Following the Wenchuan earthquake, BMW staff members were moved to compose and record an original song that would convey their support and love to the children in the disaster area. Working at a professional recording studio, the group quickly completed the song, entitled The Flame of Life. Although not professional singers, everyone truly sang their hearts out, "lighting up the flame of life" and spreading strength, optimism and hope for the future to those affected.

Mutual respect and care.

BMW has always viewed its employees as the foundation and decisive element for its corporate development. Creating space for its employees to grow is thus an important objective for BMW. As a result, BMW's commitment to corporate social contribution is also reflected internally, in attention to employee concerns, the working environment, and the broader corporate culture. Indeed, BMW sees its employees as creators of the corporate

culture and partners in corporate social responsibility. Encouraging voluntary employee participation in public welfare activities serves as an embodiment and extension of BMW's corporate culture and emphasis on corporate social contribution.

Virtuous Actions, Endless Passion.

Hand in hand, contributing to reconstruction in Sichuan.

BMW joins with the China Charity Federation to establish the BMW Warm-Heart Fund.

The Sichuan earthquake, measuring 8.0 on the Richter scale, unleashed its destructive power in just minutes -- but also instantly produced a tremendous outpouring of concern and compassion. Together with the China Charity Federation (CCF), BMW China and BMW Brilliance Automotive have set up the BMW Warm-Heart Fund, which will contribute to reconstruction projects in the earthquake area. The Warm-Heart Fund also provides a platform for BMW employees; BMW authorized dealers, BMW car owners as well as all BMW fans to constantly gathering their love and generosity. It's a perfect channel for the BMW community to show its support and contribute to reconstruction in the earthquake hit area in the near future, and will also brought warmth and help to broader regions in the long term.

BMW SWOT ANALYSIS

• Strengths

o BMW is not the best biggest but the best car company in the world.o BMW has strongly influenced consumers through media and film industry.o Spartanburg demonstrates that BMW is firmly committed to the US market and rededicated to the performance values that made BMW a cult here in the 1980s.o The Spartanburg plant can build 250 to 300 cars a day and production is set up to be flexible so that it can produce several models on the same line in random sequence.o The plant currently employs 1,500 people and the plan is to grow to 2,000 by the end of this decade.o Spartanburg offer us the opportunity to develop a new set of relationships in North America.

• Weaknesses

o Their corporate image is too serious and tradition-bound.o BMW was perceived to be a German-made car, not an American-made car.

• Opportunities

o The cars won't be that expensive as compared to German-manufactured cars.o This is BMW's first auto plant outside Europe. This is the chance for BMW to take a step away from being a German car manufacturer towards its long-term goal of becoming a truly global brand.o Spartanburg can really change what BMW stands for.

• Threatso Other luxury car import manufacturers were rumored to have similar concepts under development.o There are a lot of competitor luxury cars in the country.

Alternative Courses of Action

• ACA#1: Take the traditional marketing strategy of BMW. This is the traditional television and print advertisement marketing strategy. The television and print ads will be utilized in order for the new Z3 roadster be advertised all over the United States.

o Advantageso In this way, the tradition of television and print advertising will be preserved.o It will be less costly for them to advertise the new Z3 model.

o Disadvantageso Their goal of making the new Z3 model unconventional will be defied.o There will be less impact with regards to their new car model.

StrengthsBMW is a well-known company with a high status branding that has a very high recognition factor. The company has been strengths in both research and development and design as well as in marketing.   For example when it comes to marketing it was a BMW advertisement that was the first e-advertisement that made it to Campaigns 'Pick of the Week' (Doman). However, in a long-term purchase such as this there is a need for moire substance than just marketing, otherwise the life of the company would be relatively short due to the nature of the purchase. It is in these longer-term systems and strategies that we can see many of the strengths of BMW, we can consider these by starting with the market position of the company. 

BMW as well as Mercedes' and a few other companies have managed too successful attain a market position where they have a focus on a narrow range of exclusive cars. These can be seen as aimed at the market place that is not also sensitive to price, and as such we must argue that the market positioning may be seen as a strength as there will not be such a reaction if the economic conditions change. The customers that are in the target group are happy to pay a premium price for what they perceive as a premium product (Thompson). This may not be so true of the subsidiary companies that have had different problems, such as the ill-fated Rover group. However, the core product has remained strong (Thompson). This may be seen as diversification, and some of the diversification may also be seen as a strength, for example the purchase of Rolls Royce where there is a similar strategy, however the range and target market are even more focusedand exclusive. 

The strategy of BMW is designed to be defensive against other car manufactures, and as we will see when it comes to the section on threats this is a defensive strategy that BMW have adopted after learning the need for defensive as well as aggressive marketing and strategies. 

CHAPTER 4CONCLUSION

The automotive industry is distinguished by a highly competitive market. Thus, the players on the market struggle with increasing cost of production, development and mature markets. With the aim to increase profit margins and reduce costs, Volkswagen, GM and Ford are some companies, which use the same components in different car models and car brands. These companies have in other words succeeded in synergising research and development effects within the company despite car model and business area. By a contrast, BMW, an individual actor, has yearly shown strong financial results and has retained its market shares. This becomes of interest to study more profoundly, in order to find the factors behind successful company and a strong brand.

Purpose: The purpose of this thesis is to analyse the development of BMW during the past years. Not only are the financial statements taken into consideration. In addition, comparison to competitors and the market situation is also made.

Delimitation and assumptions: This project is delimited to an analysis of BMW between the years 2001-2005 basically. The thesis is based on the assumption that BMW is the most successful automotive manufacturer in the premium segment.

Methodology: In the study of BMW mostly secondary data is used.

Results and Conclusion: BMW is a well known and highly valued brand and has high diversity in the product portfolio. BMW possesses high internal competence and the company develop a large part of the car by themselves. The emerging markets in South East Asia, Russia, Eastern Europe and South America have shown evident growth developments. Eminent production, transportation and raw material costs have both dampened margins and affected the buying power of consumers likewise as high oil prices.

Suggestions for further studies: What would be of interest are the services that the automobile manufacturers offer beside the cars, the after sales services, like financial services for example. In addition, future research could also include studies of customer loyalty in association to the after sales services.

Concept of BMW advertisement

BATTLE OF TWO

BMW and Audi are duelling again, but this time, onto the “marketing battle field”. And what would be the best

Place to do so other than the one of the top states when it comes to car luxury sales: California.

On the corner of Santa Monica Blvd. and Beverly Glen Blvd (corrected the location), Audi has put up some

Billboards showing the all new Audi A4 along with the headline: “Your move, BMW”. Santa Monica BMW, a

Local dealership, took on the challenge and entered a virtual chess game ….of course, with cars rather than

Pawns, kings or queens.

Juggernaut Advertising, an independent advertising agency headquartered in Santa Monica, CA, has initiated a

Tactical outdoor marketing campaign on behalf of BMW of Santa Monica. The campaign is in response to

Audi’s current billboards challenging BMW with the headline “Your move, BMW.”

Juggernaut Advertising’s creative work features the BMW M3 with the headline “Checkmate.” and is

Positioned .Prominently within the same sightline to westbound traffic as the Audi ad. Juggernaut approached

BMW of Santa Monica after identifying a unique and immediate geographical opportunity along the highly

Trafficked Santa Monica Blvd. corridor between Beverly Hills and Santa Monica.

“When we heard the idea, we loved it and couldn’t resist going forward,” says Del Montell, Jr. of Santa

Monica BMW.

The trouble began when BMW released an ad for its new 3-series and congratulated Audi for winning the South African car of the Year award. Certainly an esteemed honour in it’s own right, but BMW signed the congratulations with the line, “From the winner of the world car of the year award 2006.”

Audi’s PR guerrillas, not willing to sit idly by while being assaulted in the print realm fought back with the ferocity expected from the German carmaker. They parried BMW’s thrust with an ad proclaiming that the “world car of the year award” was nice, but we’ve kicked butt at LeMans for six consecutive years, so put that in your pipe and smoke it!

VIEWS

Clever advertising, BMW won the battle but Audi is winning the war. Audi has re-branded them as the

Progressive luxury car. Mercedes is catching up finally with the current redesigns but how is BMW adapting?

By offering maintenance for up to 50,000 miles.. Come on BMW you can do better, maybe its time for a

Redesign as well.

BIBLIOGRAPHY

The Following References are taken in consideration for the preparation of this Project.

Books

Inside the BMW Factories: Building the Ultimate  by Graham Robson

Driven: Inside BMW, the Most Admired Car Company by David Kiley

BMW by Rainer W. Schlegelmilch

Driving Machines: The BMW Story by James Taylor

Encyclopaedia and Dictionary

Encyclopaedia Britannica

How stuff works?

Encarta

Automotive Encyclopaedia

Magazine & Newspaper ArticlesAUTOCAR INDIA

BMW AUTHENTIC

ZIGWHEELS

What’s HOT?-Hindustan Times

Website / Webpagehttp://www.bmw.in/in/en/

http://www.bmw.com/

http://en.wikipedia.org/wiki/BMW

http://www.infibeam.com/cars/make/bmw.html

http://bmw-motorsport.com/ms/en/index.html

http://www.bmwblog.com/

http://www.zigwheels.com/b2cam/home.action

BLOGS

http://www.bmwblog.com/