Bmwaktuell101122fertig 101123145059 Phpapp02

Market Analysis BMW
Introduction to Consulting - Course Work WT10
Julia Schmidt, Lorenz Illing, Michael Frse
AGENDA
1) Introduction 2) Market 3) Competitve landscape 4) Companys positioning 5) Conclusion
23.11.2010
1) INTRODUCTION
23.11.2010
1) INTRODUCTION BMW Group

founded
in Munich,1917 of Rover Group in 1994 of Rolls-Royce in 2003
Acquisition Acquisition 2009 1,3
mio cars sold employees 50 b
96,230
Revenue most
23.11.2010
sold car: 3 series

Julia Schmidt, Lorenz Illing, Michael Frse 4
1) INTRODUCTION Production
23 production and assembly plants in 13 countries

23.11.2010 Julia Schmidt, Lorenz Illing, Michael Frse 5
1) INTRODUCTION Research & Develpoment
12 R&D plants in 5 countries

1) INTRODUCTION Sold Cars in regions
GB 11% 21% USA
21% Germany 7% China 24% Rest of Europe 14% India
1,341,048 cars worldwide

1) INTRODUCTION Sold Cars in brands

6% 0%
2009
BMW Mini Motorcycles Rolls Royce Total
1,043,829 213,670 82,631 918 1,341,048
16%
23.11.2010
78%
2) MARKET ANALYSIS
23.11.2010
2) MARKET ANALYSIS Market denition
product-oriented: all companies that offer a combination of luxury and powerful cars with a high level of quality and service customer oriented: car manufactureres such as Lexus (Toyota), Audi (VW), Porsche (VW), Merzedes-Benz (Daimler).
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10
2) MARKET ANALYSIS Market denition

The
respective market for BMW consists out of the premium segments of the global passenger car and motorcycle market.
BMW is one of the leading luxury car manufacturers in the world.
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11
2) MARKET ANALYSIS Porters 5 Forces

Threat of New Entrants Bargaining Power of Suppliers
Rivalry Among Existing Competitors
Bargaining Power of Buyers
Threat of Substitute P&S


Rivalry among existing competitors: + some competitors of the same size + Low industry and market growth rates + Barriers to exit are high (production facilities) High
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13

Threat of New Entrants: + high initial investments and xed costs + limited access to specialized suppliers + existing players have close customer relations (e.g. long-term service contracts) + customer loyalty Low

Bargaining Power of Buyers + Buy large volumes (e.g. company car for many large companies) + Switching to an alternative product is relatively simple and not related to high costs + Products are undifferentiated and can be replaced with subsitutes Product itself of strategic importance to customer Customer knows about the production cost of the product Medium

Bargaining Power of Suppliers: + Suppliers products are customized and valuably differentiated + high switching costs to alternative suppliers + JIT production Market is dominated by many suppliers (sub suppliers) High

Threat of Substitute Products & Services: + close customer relationship + brand loyalty of customers is high No penalties or low switching costs for customers Current trends medium
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17
2) MARKET ANALYSIS Distribustion Channels

retailers network military services
company carpool franchise system
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18
2) MARKET ANALYSIS Market Trends

% growth
15 11 8 50 4 0 -4
23.11.2010
million vehicles
100
75
25
2009
2010
2011
2012
2013
2014
0
19
2) MARKET ANALYSIS Key Success Factors

branding brand brand global
loyality awareness in established markets in growing markets
positioning
positioning positioning innovation
rate
differentiation hybrid
3) COMPETITIVE LANDSCAPE
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21
3) COMPETITIVE LANDSCAPE Market Structure

World Ranking of manufactureres in cars sold 2009 in thousands
1. Toyota 2) G.M. 3) VW 4) Ford 5) Hyundai 6) PSA 7) Honda 8) Nissan 9) Fiat 10) Suzuki ... 12) Daimler ... 14) BMW ... 41) Porsche 0
23.11.2010
Cars
Commercial Vehicles
2.000
4.000
6.000
8.000
22
3) COMPETITIVE LANDSCAPE Market Structure Toyota

12%
no
clear market leader than 50 competitors worldwide 2% local car manufacturers
Rest 27%
G.M. 10%
more
many
23.11.2010
2% Suzuki 4% Fiat 4% Nissan 4% Honda PSA 5% Julia Schmidt, Lorenz Illing, Michael Frse5%
VW 10%
Ford 8% Hyundai 8%
23
3) COMPETITIVE LANDSCAPE Direct Competitors
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24
3) COMPETITIVE LANDSCAPE Indirect Competitors
23.11.2010
25
3) COMPETITIVE LANDSCAPE Porsche

founded
in Stuttgart in 1931 cars sold in 2009
ca. 100,000 11,910
employees worldwide 7,3 b in 2006
Revenue Merged most
with VW in May 2009
sold car: Porsche Cayenne Diesel in 2009

23.11.2010
3) COMPETITIVE LANDSCAPE Lexus

founded
in 1989 cars sold in 2009
ca. 216,00 Revenue division
12,6 b in 2007
of its parent company Toyota Motor Corp. sold car: Lexus RX
most
23.11.2010
27
3) COMPETITIVE LANDSCAPE Mercedes

founded
in Stuttgart in 1926 cars sold in 2007
ca. 1,300,000 256,000 Revenue division
of its parent company Daimler AG sold car: CLK/SLK

most
23.11.2010
3) COMPETITIVE LANDSCAPE Audi

founded
in Zwickau in 1909 cars sold in 2010
ca. 920,000 60,000
Revenue wholly
owned subsidiary by VW since 1966 sold car: Audi A4

most
23.11.2010
3) COMPETITIVE LANDSCAPE Cars sold (2009)

0 325.000 650.000 975.000 1.300.000
Porsche
85.900 310.000 975.000
Lexus Mercedes Audi BMW
1.183.000 1.280.000
23.11.2010
30
3) COMPETITIVE LANDSCAPE Net sales in mio (2009)

0 12.500 25.000 37.500 50.000
Porsche
7.466 12.680 41.318
Lexus Mercedes Audi
29.840
BMW
50.000
3) COMPETITIVE LANDSCAPE Employees (2009)

0 25.000 50.000 75.000 100.000
Porsche
12.202 11.520
Lexus Mercedes
Audi
97.000 58.011
BMW
100.041
4) COMPANY`S POSITIONING
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33
4) COMPANY`S POSITIONING Strategy

The
BMW Group is the leading provider of premium products and premium services for individual mobility. strategy Number ONE standing for 'New Opportunities' and 'New Efciency' Group's activities comprise the development, production and marketing of motorcycles as well as comprehensive nancial services for private and business customers:
New
BMW
23.11.2010
4) COMPANY`S POSITIONING SWOT Analysis

STRENGTH: Strong brand image Strong R&D capabilities (DM) Strong product innovation High employee productivity Motocycle as niche product US military service High quality suppliers Steady decrease in Co2 emissions Strongest product: 3 Series
WEAKNESSES:
Poor performance of BMW in asian markets Declining production and deliveries Lack of scale compared to competitors High wages Too less strategic alliences
35
23.11.2010
4) COMPANY`S POSITIONING SWOT Analysis

OPPORTUNITIES:
THREATS:
Car industry on road to recovery Poised to benet from increasing demand for hybrid electric vehicles Growth in Asia Growing used car market in UK Moderate growth in global cars market Rising green awareness
Competition in the global automotive market Currency risk Environmental protection regulations Recession in US and Europe Rising green awareness
36
23.11.2010
5) CONCLUSION
23.11.2010
37
4) COMPANY`S POSITIONING TOWS Matrix

O
focus on BRIC countries by using brand
image considering green awareness to invest in hybrid technologies investments in new products for leasingincrease leasing contracts enter UK used car market with leased cars (3` series) currency risk regulations
T
high global presence reduce new innovations to match EU vehicle strong brand image helps BMW to
overcome recession
use BRIC countries to outweigh low

performance in these countries
Lower wages stay competitve lack of scale to competitors reduce

EU dependence on EU vehicle regulations
car industry is growing again increase W production build new production facilities in Asia to
lower wages
23.11.2010
M&A to overcome lack of scale
compared to many strategic alliences of competitors

38
5) CONCLUSION Possible Recommendation

New product development in China 1 series or 3 series on cost leadership basis diversication strategy according to Ansoff Matrix
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39
5) CONCLUSION References

(2007). Annual Report Porsche Automobil Holding 2007 (2009). Annual Report Bayreische Motoren Werke AG (BMW Group). (2009). Annual Report Toyota Motor Corporation (Toyota) (2010). Company Spotlight: Bayerische Motoren Werke AG. MarketWatch: Automotive, 9(4), 17-23. Retrieved from Business Source Premier database. (2010). DATAMONITOR: Bayerische Motoren Werke AG (BMW Group). Bayerische Motoren Werke AG SWOT Analysis, 1-9. Retrieved from Business Source Premier database. Amrioul, N. (2009). Das Image von Automarken: Eine empirische Studie von Audi, BMW und Mercedes Benz. VDM, Verlag Dr. Mller.
23.11.2010
40
QUESTIONS?
Th a n k you for your attention.

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Market Analysis BMW

Introduction to Consulting - Course Work WT10

Julia Schmidt, Lorenz Illing, Michael Frse

1) Introduction 2) Market 3) Competitve landscape 4) Companys positioning 5) Conclusion

Julia Schmidt, Lorenz Illing, Michael Frse

Julia Schmidt, Lorenz Illing, Michael Frse

1) INTRODUCTION BMW Group

in Munich,1917 of Rover Group in 1994 of Rolls-Royce in 2003

Acquisition Acquisition 2009 1,3

mio cars sold employees 50 b

sold car: 3 series

23 production and assembly plants in 13 countries

1) INTRODUCTION Research & Develpoment

12 R&D plants in 5 countries

1) INTRODUCTION Sold Cars in regions

GB 11% 21% USA

21% Germany 7% China 24% Rest of Europe 14% India

1,341,048 cars worldwide

1) INTRODUCTION Sold Cars in brands

BMW Mini Motorcycles Rolls Royce Total

1,043,829 213,670 82,631 918 1,341,048

Julia Schmidt, Lorenz Illing, Michael Frse

Julia Schmidt, Lorenz Illing, Michael Frse

2) MARKET ANALYSIS Market denition

Julia Schmidt, Lorenz Illing, Michael Frse

2) MARKET ANALYSIS Market denition

BMW is one of the leading luxury car manufacturers in the world.

Julia Schmidt, Lorenz Illing, Michael Frse

2) MARKET ANALYSIS Porters 5 Forces

Bargaining Power of Buyers

Threat of Substitute P&S

2) MARKET ANALYSIS Porters 5 Forces

Julia Schmidt, Lorenz Illing, Michael Frse

2) MARKET ANALYSIS Porters 5 Forces

2) MARKET ANALYSIS Porters 5 Forces

2) MARKET ANALYSIS Porters 5 Forces

2) MARKET ANALYSIS Porters 5 Forces

Julia Schmidt, Lorenz Illing, Michael Frse

2) MARKET ANALYSIS Distribustion Channels

retailers network military services

company carpool franchise system

Julia Schmidt, Lorenz Illing, Michael Frse

2) MARKET ANALYSIS Market Trends

Julia Schmidt, Lorenz Illing, Michael Frse

2) MARKET ANALYSIS Key Success Factors

loyality awareness in established markets in growing markets

positioning positioning innovation

Julia Schmidt, Lorenz Illing, Michael Frse

3) COMPETITIVE LANDSCAPE Market Structure

Julia Schmidt, Lorenz Illing, Michael Frse

3) COMPETITIVE LANDSCAPE Market Structure Toyota

clear market leader than 50 competitors worldwide 2% local car manufacturers

3) COMPETITIVE LANDSCAPE Direct Competitors

Julia Schmidt, Lorenz Illing, Michael Frse

3) COMPETITIVE LANDSCAPE Indirect Competitors

Julia Schmidt, Lorenz Illing, Michael Frse

3) COMPETITIVE LANDSCAPE Porsche

in Stuttgart in 1931 cars sold in 2009

ca. 100,000 11,910

employees worldwide 7,3 b in 2006

Revenue Merged most

with VW in May 2009