Bmw Analysis Proposal

Topics: Innovation, Strategic management, Marketing Pages: 12 (3536 words) Published: August 19, 2013
Introduction:

This is an analytical report that is based on the study of a famous automobile manufacturing company known as BMW Automobiles. It is being analyzed in this report that the success of BMW is based on two core elements, first is the innovation strategy and other one is the competitive strategy. The following analysis is being carried out in an effective manner, first it describes the success of the company and then describes the two main elements on which company has relied and gained competitive advantage in.

Moreover, the report below also describes the proposition that strategic drift in an organization is caused by the failure of leadership. This part of the report will consider the case studies of two companies which include Research in Motion and General Motors.

Question 1

Innovation Strategy of BMW:

For BMW Group’s success, the foundation stone is its strategic focus on developing innovations leading to customer friendliness accompanied by an approach to effective innovations management that is inimitable in the automobile industry BMW, 2012.

"Leading innovations are the best form of copy protection for our products and a guarantor of the global success of BMW, MINI and Rolls-Royce," says Professor Burkhard Goschel, BMW Board Member responsible for Development and Purchasing. "Innovations 'made in Germany' are still setting standards" (BMW, 2004).

BMW Group was selected on by the judges of the Best Innovator Award for the recognition of its innovative products like Active Steering, BMW I, Efficent Dynamics and others. The award also reflects the fact that the process of innovation ranges from different aspects of business (BMW-Education, 2012). In 2002, it was a great achievement for the group when it won Outstanding Corporate Innovator (OCI) Award in the USA, as it was first time a European Company had received such an award (BMW-Education, 2012).

Within the innovation based business strategy a fundamental can be observed. Company works on the approach that innovation is core to success in automotive industry, and therefore it is necessary to have it. For this, company has realized its strengths and innovative process is systemized in critical steps. Not every idea can be tried and neither can be given up (Just Auto, 2004).

The innovative strategy of BMW mainly targets the two different areas and the entire strategy is designed and developed to achieve these two targets (Just Auto, 2004). These two targets of the company include the enhancement of the long term corporate value and to increase and improve the profitability at the constant rate each year. Likewise other manufactures in the same industry, the core focus of the company is to ensure the long term sustainability (BMW, 2012). But the approach to ensure the long term sustainability is observed to be very unique and matchless. The core areas on which the focuses are made include the technological developments, organizational culture and the structure. All the efforts and resources are utilized by the BMW Group to ensure that these three areas are always well managed and well established because according to the BMW, these are the core areas that have leaded the company this far and help it becoming the industry leader (Rothaermel and Hess, 2010).

Furthermore, it is also observed from the current strategy of the BMW Group that the new strategic direction was taken in the end of 2007. It is the company’s key goal that by the end of 2020, it becomes the world’s largest, leading and strongest automotive and motorcycle manufacturing company (Rothaermel and Hess, 2010). In order to do this, the key focus on the company is now made on the sales. According to the company’s current defined goals, every year the BMW Group intends to increase its sales by over 2 million units. Although looking at the current market and economical and financial contexts it seems a bit difficult. But BMW claims that it may be difficult for...

References: Levin D and Green J, 2009, GM Chief Rick Wagoner Said to Step Down, Accessed on 27th April, 2012, Available at: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a1BaGmyUoHgA&refer=home
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