Bmw Swot

AnInternal and corporate analysis in terms of strength, weaknesses, opportunitiesand threats (SWOT) will assist in gaining an understanding of where BMW iscurrently in terms of strengths and where improvement is required within thebusiness and what outside environmental threats it may face as well as what newopportunities are available to the company in the short and medium term.

Figure 1:BMW SWOT Analysis

STRENGTHS

Diverse ranges of Products - BMW, MINI and Rolls-Royce
Strong Cash Flow Position
Increase turnover and trading profits
Strong Balance Sheet
World's leading Premium Quality Automobile Manufacturer
Brand Awareness
Human resources
Capabilities to turn resources into advantages
OPPORTUNITIES

New Products
Market shift to globalisation
Innovation & Alliances
Customers demand change to more comfortable and relevantly cheap cars
Diversification
New Technologies in Automobiles
WEAKNESSES

Perception of High Prices
Customer disinterest
Environmental issues: Pollutions
Buyer sophistication and knowledge
Substitute products or technologies
THREATS

New & existing competition
Volatility in Price of Fuel
New legislations
Consequences of the oil crisis
September 11th
Economic recession
Market shift to globalisation
Takeover bids
Far-East Automobile companies expansion
Extremely high competition for customers and resources
The Five Forces Model

Figure2: Five Forces Model - ACCA Paper 3.5 (2001)

Threats from

Potential entrants

Suppliers

Bargaining power

Competitive

Rivalry

Buyers

Bargaining power

Threats from

Substitutes

Porterexplains that there are five forces inherent in a market, which will jointlydetermine the intensity of competition and profitability of BMW and theautomobile industry. The first is the threat posed by new entrants, the highcapital expenditure and confidence of customers represent significant barriersto entry and the market is also sensitive to reputation. However, the...