INTRODUCTION

Bayerische Motoren Werke commonly known as BMW is a German

multinational company which produces automobiles and motorcycles. The
company was founded in 1916 as a manufacturer of aircraft engines, which it
produced from 1917 to 1918 and again from 1933 to 1945.
Automobiles are marketed under the brands BMW, Mini and Rolls-Royce, and
motorcycles are marketed under the brand BMW Motorrad. In 2015, BMW was
the world's twelfth largest producer of motor vehicles, with 2,279,503 vehicles
produced.

OBJECTIVES

IT HAS THE NUMBER ONE STRATEGY THAT aligns the BMW

Group with two targets: to be profitable and to enhance long-term value from
a technological, structural and cultural perspective. The mission statement up to
the year 2020 is to become the world's leading provider of premium products
and premium services for individual mobility.

EXCELLENCE

The EXCELLENCE OF BMW Group is intending to drive forward

development of highly automated vehicles with the new campus, and is looking
to recruit IT specialists and software developers in the areas of artificial
intelligence, machine learning and data analysis

WHEN IT COMES 2 ELASTICTY OF DEMAND IN BMW

THE CHANGE IN QUANTITY BY RISE AND FALL IN PRICE.

BMW DEMAND BECOMES POSITIVE BY 5 THINGS THAT ARE

DESIRE+ABILITY TO PAY + WILLINGNESS TO PAY + TIME + PRICE
Basically there are three types of elasticity that are

1)price elasticity of demand

2)income elasticity of demand

3)cross elasticity of demand

1)price elasticity of demand OCCURS WHEN THE DEMANS OCCURS BY

CHANGE IN BMW PRICE

2)income elasticity of demand OCCURS WHEN THE DEMANS OCCURS

BY CHANGE IN INCOME OF BMW COMPANY

3)cross elasticity of demand WHEN BOTH PRICE ELASTICITY OF

DEMAND AND INCOME ELASTICITY OF DEMAND OCCURS
TOGETHER

BMW cars price elasticity OF DEMAND AFFECTS PEOPLE by the ONE

aspect THAT IS price elasticity of demand First of all, in the WORLD auto
market, Mercedes-Benz, a manufacturer of luxury automobiles, is a major
substitute of BMW. M

Secondly, the higher the proportion of income we spend on a good, the more
elastic will be the demand WILL OCCU. THE BMW Car is an expensive item for
household and customers usually take a loan to buy one. Moreover, priced
premium, BMW costs more money to buy. Therefore, the income effect is bigger
and the demand is more price elastic.

Since demand for BMW cars is price elastic, changes in the price will lead to
proportionately change in the quantity demand. From 2018 to 2019, significant
price reduction occurred to BMW after 2008, because WORLD auto market was
heavily hit by the credit crunch, and dealers had no choice but to cut price in the
hope of selling more cars WHICH REPLICATES TO PRICE ELASTICTY OF
DEMANDAccording to broadspeed.com, a website introduces the best discounts
available from 300 dealerships, the average discount for BMW was 8% -10%
before the financial crisis, but now price reduction was up to 30% .Therefore, due
to the effect of Law of Demand, discounts of BMW cars lead to higher demand,
which explicits the rise of sales volume from 2018 to 2019 BY INCOME
ELASTICITY OF DEMAND.