BMW automobiles Essay Example | Topics and Well Written Essays - 1500 words

BMW automobiles - Essay ExampleIntroduction During the 1990s BMW had served to established itself as unitary of the most profitable automobile manufacturer in the world. Ranking right after the magnanimous 5 in the automobile industry i.e. General Motors ,Ford , DaimlerChrysler , Toyota and Volkswagen. Originally Aero-space engine manufacturer the BMW had somehow manage to position itself amongst the top luxurious and stylish automobile producer competing with the top car producers in the world. BMW by 2000 through its class and elegance made itself actually what it claimed , The ultimate driving machine. A style epitome BMW had three brands operating under the host name , BMW which was the last contributor to the sales of automobile , miniskirt a remake and rebuilt version of the famous English style icon and the Rolls Royce. In the mid of 90s the BMW group acquired the UK owned Rover. This take over did not prove a successful one at all as it brought a lot of financial damage s to the group along with that defaming the impudence of the group. Along with this the size of the company and range of cars also became an issue. To tackle this issue Rover was sold. Quandt family the major touch holder of the group applied pressure on the group to stop over 900million Euro worth of periodical losses caused by Rover. As a result the CEO resigned and a New CEO was appointed. The sensitive CEO faced a bully situation where threat of Quandt family disposing of its share volition leave the group open for Acquisition though the group was fair in size in comparison with well-favoured 5. In 2002 Helmut Panke a nuclear physicist took the post of CEO and decided to turn the wheels by choosing aggressive improvement so as to increase market share and become market leader. Factors Effecting Market There were motley factors effecting the automobile marketing causing the autmobile manufactures to make a shift if strategies. The economies had been hit by recession effe cting acquire power of customers. Hence theyll go for cheaper options. To stay in the market BMW has to Reduce cost but step-down cost mean earning less marginal profits which previously was quite easy to earn. Environmental concerns world(a) warming and greenhouse gases are increasing day by day, BMW cars are on petrol which is a contributor to green house gas. Geopolitical tensions The war in the middle east and the disturbance in the rich Arab world which would be high contributors to BMW sales globally. BMW group has to look for ways to compensate for these sales. terminate consumption and efficiency The war in the middle east lead to fluctuations and dramatic increase in oil prices hence making the gas consumption uneconomical for most engines . Purchases in the asian markets for automobiles wobble magnitude The economy depressed in the USA and European markets where BMW sales were high but an increase in sales in Asian countries was observed. Porters 5 Forces Model 1) Com petitive Rivalry The competition would grow tough as the focus will be on Asian markets with their already being rivals there eg Honda, Toyota, Suzuki etc though they dont match BMW on the class and elegance scale but these makers are a lot less expensive then BMW. 2) Power of suppliers There wont be no significant change but there will be more suppliers willing to negotiate terms as productions exact been slowed down or cut down. 3) Power of buyers The customers will become powerful as few of them will be buyers