Bmw Swot Analysis

INTRODUCTION
This piece of work conducts an analysis of the internal and external environment from BMW perspective. It also identifies the capabilities that BMW have that will enable it to sustain a competitive advantage in automobile industry. First there is introduction of general view of the automobile industry to explain the complexities of this industry; next an analysis of the internal and external environment from BMW perspective shall be done using the elements of the SWOT analysis.

AUTOMOBILE INDUSTRY STRUCTURE:
Automobile industry has undergone major changes during the last four decades especially in the period extending from 1990 to 2001. Consolidation was moving forward very rapidly and almost 69% of the automobile market was owned by six international giant companies.
European market specifically faced a furious competition, the high technological advancement and the level of quality achieved by most manufacturers radically decreased the opportunity for product differentiation. In addition, consolidation led to a huge increase in productivity. These factors made price competition the prime strategy for manufacturers even if this will mean a loss to the company for example Ford Europe losses reached 117 $ m in 1999. Customers, environmental constraints and petrol prices also helped in creating this insensitive environment and obliged many companies, mainly midsized players like BMW, to rethink their business strategy in order to survive.

BMW overview:
Bayerische Motoren Werke Group (BMW) is one of the world’s leading luxury carmakers. Founded and based in the Germany, BMW employs 820,000 workers in plants in Germany U.S.A and South Africa. In 1959 Herbert Quandt bought BMW, when the company was in financial difficulties, now they own 46% of the BMW shares. BMW turnover was around £15.5bn; its productivity reached 820,000 vehicles in 2000.

The powerful reliable performance and their luxurious design made BMW “The ultimate driving machine”....