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FACULTY OF BUSINESS AND MANAGEMENT

BACHELOR OF BUSINESS ADMINISTRATION (HONS.)


INTERNATIONAL BUSINESS (BA246)

INTRODUCTION TO INTERNATIONAL BUSINESS (IBM530)

INDIVIDUAL ASSIGNMENT : CASE STUDY

PREPARED BY:

NAME MATRIX CLASS


NUMBER

1 SITI NURFARAH NABILA BINTI MOHD SALIHIN 2021166789 M1BA2462C

SUBMITTED TO :

MADAM KHALILAH BINTI IBRAHIM

SUBMISSION DATE:

7 JUNE 2021
SUMMARY FOR TOPIC 1

GLOBALIZATION OF BMW, ROLLS-ROYCE AND THE MINI

Bayerische Motoren Werke or specifically known as BMW in the global market was created by
three manufacturing famous companies which are Rapp Motorenwerke, Bayerische
Flugzeugwerke located in Bavaria and Fahrzeugfabrik Eisenach in Thuringia. In 1929, BMW
was expanded into automobiles and first created the BMW car, named as BMW Dixi. As in the
world, the BMW had been known as the excellent and beautiful design, the luxury and had very
top-notch performance which all of this happened because of its creative innovation and focusing
on the future that is one of the parts of BMW’s identity. Besides that, the popularity of the BMW
has made this company successfully achieve revenue for about 103 billion in US dollar annually
and had the streamline of products for example like automobiles, motorcycles, and aircraft
engines. Because of its unique feature, it has put the BMW to another level by the presence of
the BMW M760 that has connected the BMW and the Rolls-Royce. The Rolls-Royce has been
known as a very exclusive brand in the world and the reputation of this brand has already been
rooted in a long generation since back then. The most popular automobile that has been created
by this brand is the Rolls-Royce Ghost that has $250 000 in its price values, showing the vision
for luxury to the world. Furthermore, the more interesting thing is in United Kingdom, the same
automobiles that shared the same perfection as Rolls-Royce had been known as MINI. MINI is
one of the car brands that owned by the BMW which MINI more specifically specializes in small
cars. They are more likely to target the customer with the range of ages 20s-30s and to attract
them, the BMW company has made a strategy called the Product Genius. In the Product
Genius’s strategy, they are more focused on educating the customer about the car, and any issue
or information that the customer want by the BMW car expert. With this strategy, it will help the
customer to feel less pressure when dealing about buying a car and they will be satisfied with the
services which will contribute to the high probability for the customer to buy the car.
CASE DISCUSSION QUESTIONS

1. How do you think BMW integrates its various unique brands into a global effort that
works for them (BMW, Rolls-Royce, and the MINI) across the world’s many global
markets?

BMW had invested into the US facilitation as one of their platforms to gain more revenue which
this facilitation helps to advertise their various unique brands to the target market around the
world. This advertisement of the BMW company around the world had made it to have a very
powerful branding image which this being as the foundation to the success of this company.
Besides that, with the unique features and the value proposition in the BMW automobiles, it has
made a great impression from the various consumers globally and make them more superior than
their competitors. Furthermore, the BMW automobiles had introduced as the brand that represent
the customers lifestyle and their social status. These automobiles are selling towards the
customer who required the luxury, high performance, and the best quality which all this features
demand had been added up into the BMW vehicles. With this feature and the equipment that is
provided in the BMW automobiles, it eventually attracts their target market especially towards
the new generations which this generation really desires to get a car that introduces their way of
living. They believe that the company will provide the best and good performance by their
experience when using the BMW cars.
2. What is your reaction to the global brand of BMW when you hear the name, think of
the brand and see the vehicles on the road?

When I hear, think and see the BMW vehicles, the feeling of excitement runs through my mind
because I believe whoever owns this brand has been considered as the richest person among the
society. BMW automobiles have been related to the person who wants to express their luxury,
their lifestyle and the person that is concerned about the quality performance of cars. In the
article, it stated that BMW had created the driving pleasure among the consumer from the
perspective of its dynamic features, the type of sporty performance, and the magnificent design
which all of these make the BMW brand more highly valuable in the world. When we go through
the BMW group, the company offers a valuable portfolio of products that are known as Rolls-
Royce, BMW and MINI. All these products have created a different scenario for the consumer
for example,If the consumer wants to feel extremely luxurious, they can feel this scenario by
owning the Rolls-Royce cars. With these specific features and the popular brand itself, I feel so
encouraged and eager to get my own BMW car in the future.
3. The Rolls-Royce chase of perfection drives the supreme quality, exquisite hand
craftsmanship, and attention to the finest detail to maintain its global position as the
pinnacle luxury automobile manufacturer in the world. How do you think the Rolls-Royce
brand helps, or hurts, the other BMW brands globally (BMW, the MINI)?

From my own perspective, I don't think that the Rolls-Royce brand either helps or hurts the other
BMW brands which are BMW and the MINI because all of these car brands have different
unique features and the price itself. Back in 1998, Rolls-Royce Motor Cars had been taken over
or acquired by BMW with the payment for about $570 million. With this acquisition between
the Rolls-Royce and BMW, the consumer will get the benefits of the luxury Rolls-Royce cars
with the advanced technology provided by the BMW which make the car become more resilient
and practical. Furthermore, all the BMW brands like Rolls-Royce, BMW and MINI have their
own customers that will buy the cars based on their need and specification. For example, if the
person likes to have a luxurious and flashy lifestyle, they are probably more attracted to buying a
Rolls-Royce car. This goes the same towards the people who tend to buy BMW cars because
they love to have a luxury item and besides that, they really want the items to have a great
quality too. For MINI brands, it is more focusing towards the young generations who love to
have freedom, love driving tiny cars and also want to have economic fuel saving. In conclusion,
I believe that the Rolls-Royce brand has its own unique feature that will attract the specific
customer and does not hurt or help other BMW brands globally.
4. The MINI is a unique car offering in the BMW portfolio. It has long-standing attention
to clever solutions with distinctive designs that unlock urban driving and cater to
customers’ individual needs—at least that is what the target focus is for the MINI. Do you
agree that this is the focus, and do you think it is working as advertised globally?

Yes, I agree with this statement. Based on the case study, MINI had clearly stated its focus and
objective to target the affluent urban dweller in the age range 0f 20s and 30s who really like the
freedom and offer the individuality needs towards them. MINI is most likely known as a small
car and the popular brand which attracts the young generations to choose and buy the MINI cars.
During this brand commercial, it has shown that this car is easier to park in the parking lots and
go around the cities easily especially with features of fuel economy saving. The commercial was
successful to make the young generations love this brand and feel desired to have at least the
MINI brand in their house. Besides that, the MINI had made a strategy to attract this young
generation by using the product genius because they knew a lot of young people will feel
pressure when they need to choose and buy the cars. With this strategy, they make sure that they
will help the young people to obtain the information about the cars and how to make better
choices when choosing their desired car which eventually makes the customer feel less pressure
and when they are satisfied with the services, most likely they might buy the car from BMW
automobiles.

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