Bayerische Motoren Werke B.M.W. Team Diamond Backs Spring 2008

Agenda Company Overview BMW’s Products BMW in the 90’s Competitors BMW’s Future Recommendations

B.M.W. Overview First established during World War I 1959 facing bankruptcy Merger downplayed due to Quandt Family owning 46% of the company BMW automobiles account for 75% of the company’s overall sales

BMW’s Main Products 3 series which is targeted to young executives 5 series is for the established executives 7 series is aimed at the luxury market

BMW in the 1990’s Employed a highly skilled labor force which was correlated to high costs Had a watchful eye on Rover and purchased the company Rover was not profitable, but they kept the MINI segment and sold Range Rover to Ford

Competitors BMW’s major competitor is Volkswagen which is Europe’s number 1 automaker Daimler-Chrysler Toyota GM Ford

Competitor Background VW: Audi, Lamborghini, Bentley, Porsche, Bugatti GM: Buick, Cadillac, Chevrolet, GMC, Pontiac, Saab, Saturn, 49% stake in Isuzu, 20% stake in Subaru, Suzuki Motors, Fiat, Alfa Romeo Toyota: Lexus, Scion Ford: Mazda, Range Rover, Jaguar, Mercury, Lincoln, Volvo

Profit Per Car 1999 * = excludes Lexus

BMW in 2000 18% Sales increase in U.S. sales, outselling both Mercedes-Benz and Lexus Sales overall rose by 8% BMW’s profit margins are amongst the highest in the world

BMW’s Future Cost Leadership Strategy VS. Focus Strategy BMW is affective because they strive to anticipate change by adapting the technology used in their premium autos through features and functionalities More attention will also be paid to currency fluctuations

Recommendation No merging Acquire other niche firms like they did with MINI-Cooper Use their competitive advantage to take market share from Mercedes-Benz and Volkswagen who are the main competitors The future strategy should focus on ensuring the company’s long-term success and safeguarding its independence

Short Film http://www.youtube.com/watch?v=PKYUtUw-8ig