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The motive of this essay is to give clear information about BMW ag’s entry into
the luxury and premium automobile sector. The flow of the essay would start with
the background and introduction about the company, then coming over to the mark
et factors that led company to enter INDIA, also about the entry strategy in ter
ms of corporate decisions they took for doing business in INDIA and what compani
es’ present strategy in INDIA is to gain the market share.
Indeed the chosen strategy is one of the best to go after the trans-global strat
egy to enter a international market for any firm, but there are limitations with
this strategy too but then also it is the best of choice and option for BMW IND
IA, as in INDIA, if u follow the trans-global strategy the firm will have to sta
rt from the scratch and understand the market by being rigid, but in this chosen
strategy , the market responses and management decisions are handled together e
ffectively,
BMW INDIA will further strengthen the dealer network by stepping into Phase II,
By expanding into the markets of Ludhiana, Bhubaneswar, Jaipur and
Coimbatore, by the end of 2009.
By the strategic location chosen by the BMW group , it is clearly seen that deal
er presence are in the area of the customer linkage, to be precise the potential
customer presence and to be in the easy reach of the potential customer.
One of the best strategy move by the BMW INDIA group have been the establishment
of international purchasing office ( ipo ) at its headquarter in gurgaon , the
department will look at the development and operations of export from INDIA to t
he BMW group international production department and there work in direction of
increasing the share of sourcing from INDIA over the next couple of years.
When BMW first came to INDIA in 2007 its brand awareness was very low. In 2007,
only 2% of the new car buyers in INDIA knew about BMW. In 2008, this figure went
up to 13%.
Also having an strategic alliance with Bajaj Allianz general insurance for the m
otor insurance and with ICICI bank to offer the customised and personalised solu
tions for the finance, and also one with the orix auto , for the leasing for the
customers , these all services are being handled by a separate department in IN
DIA known as BMW finance INDIA.
Right now as BMW INDIA’s, managing director, Andrea’s schaaf puts it the Activit
ies include the identification and assessment of potential suppliers taking into
account BMW’s requirements for quality, technology and logistics. There will be
a time when BMW will put more pressure on sales and then we will definitely tar
get higher volumes, BMW 2 years back was not in the purchase group. Today, BMW i
s there in 90% of the group, that’s a very big step.”