What are the key resources and capabilities of BMW in 2018?

1. Strong brand image: BMW is more than 100 year old company and has developed a brand
name for itself in Germany as well as in the world.
2. Advanced manufacturing capabilities: BMW was initially aircraft engine manufacturer and
later went int car manufacturing business. Thus, BMW has technologies that allow for
efficient production of high-quality vehicles.
3. Strong R&D capabilities: BMW invests heavily in research and development in past and for
future. They have been developing cars that are self-driving based on latest technology.
Thanks to its very powerful R&D facilities.
4. Skilled workforce: BMW has a highly skilled workforce that is trained in advanced
manufacturing techniques and automotive engineering.
5. Wide distribution network: BMW has a global distribution network, which allows it to reach
customers in many different regions of the world.

How has BMW been able to maintain and extend these resources and capabilities for over 100
years?

BMW has been able to maintain and extend its resources and capabilities for over 100 years by
implementing various strategies, including:

 Continuous investment in research and development: it has one of the best research team
that always keep working in future technology, iDrive is one such example.
 Focus on quality and innovation: Innovation is one of the keys to its business, it always think
about future and act accordingly. For example, BMW believe that in future people wont own
individual cars and thus venturing in car renting business for provide car pool services etc.
 Global expansion: BMW has expanded its operations to different regions of the world, which
has helped the company to grow and remain competitive.
 Strategic partnerships and acquisitions: In 2015, BMW, Audi, and Daimler (the parent
company of Mercedes-Benz) joined forces to acquire HERE from Nokia for €2.8 billion. The
acquisition was aimed at reducing the carmakers' dependence on Google Maps and other
mapping services, which were seen as a potential threat to their businesses. The companies
aimed to develop HERE into a platform that could provide maps and location-based services
not just to the automotive industry, but to other industries as well.

What are the main competitive threats for BMW in 2018?

1. Increased competition in the automotive market worldwide: One of the challenges faced by BMW
is the emergence of new companies such as Tesla, which are focused on producing electric cars. This
has made it even harder for BMW to compete in the electric car category, which is becoming more
popular due to environmental concerns and government regulations. Another challenge is the entry
of tech giants like Google, which is developing self-driving cars. This poses a threat to the traditional
car industry, including BMW.

2. Increased government regulations may increase costs: As governments impose stricter

environmental regulations and require car manufacturers to meet higher fuel efficiency standards,
car manufacturers may need to invest more in research and development, use more expensive
materials and technologies, and face higher costs for compliance. These costs may not necessarily be
passed on to consumers in a highly competitive market, which can put pressure on the profit margins
of car manufacturers. Additionally, manufacturers that fail to meet these standards may face fines
and other penalties, further increasing their costs. However, some car manufacturers are responding
to these challenges by investing in more efficient production processes, exploring alternative fuel
technologies, and developing partnerships with suppliers and other stakeholders to reduce costs and
improve their environmental performance.

3. U.S. car market ready to go down: 2015 and 2016 have been the leading years in the automotive
industry since 2007 and that all competing automakers in the U.S. were able to increase their sales,
including General Motors. However, recently and in future the growth of the automotive market in
the U.S. is going down, and new car purchases will decrease in the next few years due to
overcrowding.

How do you propose to address these competitive threats?

 Differentiate the brand: BMW can differentiate itself from its competitors by highlighting its
unique features and strengths. For example, BMW could focus on its reputation for high-
quality engineering, innovative technology, and luxury. BMW could also differentiate itself by
focusing on sustainability and eco-friendliness, which is an area of increasing concern for
consumers.
 Expand the product range: BMW could expand its product range to appeal to a wider
audience. For example, BMW could introduce more affordable models to compete with
lower-priced competitors, or it could develop new models to compete in emerging markets.
 Innovate: BMW can invest in innovation to stay ahead of the competition. For example,
BMW could develop new technologies to improve fuel efficiency or to enhance the driving
experience. BMW could also invest in autonomous driving technology to stay competitive
with other companies that are making progress in this area.
 Collaborate: BMW could collaborate with other companies to develop new products or
technologies. For example, BMW could partner with tech companies to integrate cutting-
edge technology into its vehicles, or it could collaborate with other automakers to develop
new fuel-efficient engines.