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

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

3. 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

4. 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

5. 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

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

7. 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

8. Profit Per Car 1999
* = excludes Lexus

9. 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

10. 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

11. 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

12. Short Film