DEPARTMENT OF MANAGEMENT

CA02
Group Assignment

Subject Details
Subject Organization Theory

Subject Code MGT - 2303

Student Details
Student Name Student Number Signature
1 A.H.G De Silva 6922 Gimhana
2 M.M. Kalansooriya 6933 Miuri
3 R.D.Y.S. Samarasinghe 6952 Yeshani
4 B.H.W.Abeywickrama 6989 Widumali
5 E.M.H.M.Ekanayake 6990 Harsha
6 L.A.K.Y.Peiris 7081 Yoshitha
7 N.M.Gamage 7108 Nathasha
8 M.D.Sawbhagya 7143 Divya
9 A.H.M.K.H.Aberathna 7184 Hashara
10 R.M.A.S.Rathnayaka 7187 Achini
Word count Words 6073
Due date / Time 15TH JUNE 2022
11.59 PM
Group Declaration
We (Group) certify that the content of the above assignment is one of our original work and not
copied from any of the published or internet-based documents. Without references We have not
used any of the other person’s original work or ideas. So, the report or the work We have done is
free of plagiarism.
Group leader’s signature Yeshani Date 13/07/2022
Table of Contents

INTRODUCTION....................................................................................................................................... 1
BMW Company ...................................................................................................................................... 1
BMW Company structure ...................................................................................................................... 2
CHALLENGES THAT THE COMPANY FACED DURING IT’S LIFE CYCLE STAGES ............. 4
Product Development Stage ................................................................................................................... 4
Market Introduction Stage ..................................................................................................................... 6
Growth Stage ........................................................................................................................................... 8
Maturity and Decline Stage.................................................................................................................. 10
SOLUTIONS OR ACTION THAT THE COMPANY TAKEN TO FACE THE CHALLENGES .. 12
Product development Stage .................................................................................................................. 12
Market introduction Stage ................................................................................................................... 14
Growth Stage ......................................................................................................................................... 16
Maturity & decline Stage ..................................................................................................................... 17
CONCLUSION ......................................................................................................................................... 19
REFERENCES .......................................................................................................................................... 20

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INTRODUCTION

BMW Company

To some degree as of late about a year. Their selling is expanded speedily and which secure
tension their arrangement branch. Reliably they make a just out of the plastic new record ahead
of time. In the year 2018, BMW had sold 2,168,516 vehicles and in the next year, they ruin their
record. In addition, the arrangement charge was 2,520,357 in the year 2019. These estimations
without a doubt show their fast augmentation which needs greater headway. This exchange
achieves outrageous strain inside the compensation branch to develop one more proposition to
stay aware of its benefit cost in the resistance to some degree as of late, BMW had a press show
wherein they said generally their development.

BMW become based through Karl Friedrich Rapp in October 1913, regardless as a plane engine
creator - Bayerische, Flugzeug-Werke. Area of Munich - Milbertshofen changed into picked as it
changed into set near the gathering unit Flugmaschinen of Gustav Otto - German plane creator.
White and blue indirect BMW brand is as yet being utilized, it's an adjusted picture of turning
propeller plane, and is dated since that range inside the records of the undertaking. The plan
besides factors to a blue and white checkered flag of Bavaria. The verifiable setting of the BMW
as a vehicle creator is connected with a year 1928, while Germany had 25 vehicles creation
social occasions. Just seven of them sorted out some way to live on until these days and they're
awesome and experienced, individuals who sorted out some way to persevere through two
general contentions and the convey battling crises. Towards the turn of the thousand years,
BMW expected to convey almost everything from kitchen parts to plane engines, which is
associated with one of the crises of the remarkable vehicles maker. Perseverance in lots of
troublesome conditions become obviously testing, yet, regardless, today BMW close by Porsche
and Daimler-Benz addresses the high first rate aftereffects of the German vehicle undertaking.
The BMW vehicles are the image of an unbelievable vehicle for a got country, arranged and
conveyed for the unflinching quality, comfort and brain blowing provider for the increment of
the owner. (BMW, 2022)

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BMW Company structure

BMW administration structure and BMW authoritative construction is profoundly mind boggling
mirroring the monstrous size of the business and the worldwide size of its activities. BMW AG
Supervisory Board sits on the highest point of the hierarchical design and there are 20
individuals coordinated into four unique advisory groups.

BMW has had a neighborhood presence beginning around 1968 and BMW South Africa turned
into the BMW Group's most memorable creation office beyond Germany in 1975.The
organization was the absolute first auto organization to trade vehicles from South Africa to
business sectors all over the planet. Also, BMW has, throughout the long term, put more than
R10-billion in its creation office in Rosslyn. South Africa is currently as much a piece of BMW
as BMW is a piece of South Africa. The time span that BMW has been participated in South
Africa is one of the elements adding to the outcome of the BMW and MINI brands in this
market. Be that as it may, this continuous responsibility of the BMW Group to this nation is
another justification for why BMW is a necessary piece of the social fiber of South Africa.

BMW is a dedicated and connected with corporate resident and supports in excess of 100
individual Corporate Social Investment, most importantly, projects the nation over. These tasks

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are established in 3 key regions: HIV and AIDS, Local Community Development and Education.
Every year, BMW puts a large number of Rands into engaging gatherings deprived through
Upliftment and organization programs. From its elite assembling office in Rosslyn, Pretoria to its
cowhide upholstery plant in Ga-Rrankua, BMW keeps on devoting huge time and assets towards
its commitment of building a more promising time to come in South Africa.

Significantly, we put the accentuation on friendly speculation; not foundation. BMW South
Africa doesn't embrace a check book approach. Rather we add to manageable turn of events,
working with representatives, their families, the nearby local area and society on the loose to
work on the personal satisfaction bringing about significant and maintainable Upliftment of
networks.

By giving networks the apparatuses expected to advance long haul, supportable turn of events,
the organization is guaranteeing that this speculation is felt into the indefinite future. This way of
thinking is among the motivations behind why the BMW Group has been appraised as the
World's Most Sustainable Automobile Manufacturer on the Dow Jones Sustainability file for the
beyond 8 years. The accompanying ventures, among others, structure part of BMW's Corporate
Social Investment in South Africa.

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CHALLENGES THAT THE COMPANY FACED DURING IT’S LIFE
CYCLE STAGES

Product Development Stage

The process of conceptualizing, designing, developing, and promoting newly produced or

recently rebranded goods or services is known as product development, also known as new
product management. One of the main stages of the organization's startup phase is product
development. By addressing a market need, product development aims to grow, maintain, and
expand a company's market share. Setting a product's target market at the outset of the product
development process is essential because not every customer or client base will be attracted to it.
Quantitative market research ought to be carried out at every stage of the design process,
including before the product or service is conceptualized, during the product's development, and
after it has been released.

BMW originates internal and external ideas, then selects the best ones in accordance with the
organization's mission, vision, objectives, and overall strategy. For the BMW i8, for instance,
BMW either operates its own research facilities or contracts out research and new technological
advancements to institutes. In this stage, the car's design is also created. In this stage, the BMW
i8 is prototyped and put through consumption, safety, and behavior testing. If everything goes
according to plan, manufacturing budgeting & planning comes next. closing any gaps found
during testing, implementing any final enhancements, and conducting employee and customer
beta testing. the introduction of the market at exhibitions, showrooms, and to specific clients;
strategic and promotional planning; employee training on how to offer the BMW i8 to
customers. (BMW, 2022)

The BMW Group delivers greater experiences. exceptional vehicles, distinguished by their
excellent quality and superb design. According to this assertion, the production of automobiles is
a difficult logistical process: As premium is not only of the highest caliber but is also timely and
carefully designed. This is made possible by the BMW Group's exceptionally effective,
customer-focused production system. The primary premise is that the automotive production
process is dictated by the vehicle that the client wants and orders, not by the vehicle that the
corporation has planned.

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When we refer to "body shop," we mean the meticulous assembly of several hundred separate
components composed of steel and aluminum that are all different sizes and thicknesses to create
a precise body. Along with steel and aluminum, carbon and fiber composites (SMC) are placed
depending on the needs of the vehicle. has a high level of technical expertise gained via
millimeter-accurate millimeter laser welding and joining methods like spot welding, soldering,
screwing, and gluing. While highly skilled workers oversee the machine and wait, the majority
of modern robots efficiently complete these difficult and demanding tasks.

The color of the paint of a car is one of the few details that has such a powerful sensory impact.
It also aids to safeguard and maintain the automobile's value. But before applying a zinc
phosphate layer, the bodies must first be washed in plunge pools and degreased. Long-term
corrosion prevention is built on this. Then, four more coats of paint are applied, shielding the car
from the elements and adding a long-lasting color sheen. Each stage of production ends with a
quality inspection of the paint. The colorfastness of all coatings and resistance to environmental
impacts, for instance, are examined by laboratory specialists using environmental simulation.

A knowledgeable and skilled staff completes the colored bodies. Customized production allows
for the fulfillment of even strange customer needs. Tools, attachments, nation versions, and other
elements are used to produce the unique personalized product. It is only possible to have more
than 20,000 interior configuration possibilities with the BMW 3 Series. Two identical
automobiles arriving on the production line in quick succession is nearly unheard of due to the
endless options.

The "wedding," which is the centerpiece of the final assembly, is the highlight of the entire
production. The driving unit of the engine, transmission, axles, and exhaust system exactly fits to
the matching body and is screwed. The precise coordination of these elements is essentially what
determines the legendary Sheer Driving Pleasure. The car is now resting on its wheels. The last
components are fitted, and the engine is fired up for the first time. The new car leaves the
assembly line after passing numerous testing.

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Every step of product development company faces several challenges. Those are;

Trade-offs

Justifying decisions and managing trade-offs throughout the embodiment design stage is one of
the hardest tasks for product engineering designers when creating new goods. For instance, an
automobile could be designed to resemble a Benz and be lighter, faster, more efficient, etc., but
all of these improvements would likely raise the cost of production, making the car more
expensive than the market group that is being targeted can afford.

Economics of Products

The main goal of product economics is to produce and market engineered products that solve
customer problems financially. Every product designer who has ever had to choose between two
options is aware that their choice was most likely influenced by economics.

International Rivalry

Anywhere in the globe may access the global market due to globalization and international
marketplaces. Due to the size and diversity of the industry, one of the main obstacles businesses
confront during product development is global rivalry.

Market Introduction Stage

The introduction stage is the primary stage in the item life cycle where an organization attempts
to construct mindfulness about the item or administration in a market where there is less or no
rivalry. When the organization makes sufficient exposure about the item either by advancement
or through marking, it can take a gander at different perspectives like estimating, as well as
conveyance. Evaluating an item in the acquaintance stage is vital with gain piece of the pie. A
well known estimating methodology followed by the vast majority of the organizations is the
skimming cost system. In this estimating system, an organization typically charges an
exceptionally exorbitant cost to clients, who will buy an item. Cost skimming is normal
particularly when cell phones are sent off with better than ever includes.

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Marketing Challenges for BMW

Globalization

Globalization differentiates markets for vehicle makes where districts like Japan, North America
and Western Europe are laid out huge fabricates with more than 18 vehicle produces no matter
how you look at it. This records for very nearly 90% of vehicle created consequently a scramble
for accessible business sectors, consideration currently goes to impending economies like Russia,
Latin America and Eastern Europe, Governments in creating economies mindful of the worth of
their planned development sell their piece of the pie to the most elevated bidders, as BMW, this
financial backers expecting to increment producing limits to fabricate their expected market bid
away their monetary returns and in this manner duplicate the overcapacity issue for an enormous
scope (Griffin and Pustay 2009). Takes a chance with engaged with wandering into new business
sectors show up and most organizations mindful of the results of losing a commercial center bid,
this either works out in the organization over offering or calling it quits and losing the market.

Separation

Productive ECO-Specialties ought to emphasize their partition. Division suggests that the
advancing mix is specific from and better than whatever is open from the competitor; thing
detachment is the middle to a strong part of the general business. An abundance of decision for
the vehicle buyers exists with vehicle models with basically near utilitarian characteristics,
BMW is as of now constrained to make extraordinary things for a particular region at a specific
second, and this is to adjust to tastes and unconventional necessities of purchasers.

Substitute Products

Substitute things risk on the auto market associates with things, materials or resources that could
make the premium for a thing shift. BMW targets premium buyers with whom quality matters,
however various makes zeroing in on this extraordinary vehicle market like, Mercedes, Audi,
and the Porsche consequently become a close by substitute to BMW.

Advancement

Commitment to advancement and thing arrangement has gotten on the best test the associations
history, the capriciousness and unpredictability of the abilities introduced in BMW's first class

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rich vehicles has flourished making manufacturing costs increase. Thing improvement is the
most financially troubling for BMW, the cost of cultivating another models and model parts is
huge, monotonous and conveys critical risks. where the section and general motors GM
experience of 1970s and 1980s surmises that commonization among produces prompts purchaser
explosion and chaos, BMW is right now faced with exorbitant course of upgrading models and
going through exhaustive expensive and risk slanted testing stages (Hollensen 2007).

Competition

Contention from other vehicle makers direct association philosophies, with 69% of the market
compelled by six associations its all the more difficult for a creator to stay aware of his buyers
without strikes from rivals, this fundamentally influences costs. Slow advancement in vehicle
industry heightens challenge and has affected the BMW method provoking the BMW brand
getting the solidification assistants

Growth Stage

The Growth stage is the second of stages in the item life cycle, and for some makers this is the
critical stage for laying out an item's situation in a market, expanding deals, and further
developing overall revenues. This is accomplished by the proceeded with advancement of buyer
interest using advertising and special movement, joined with the decrease of assembling costs.
How soon an item moves from the Introduction stage to the Growth stage, and how quickly deals
increment, can shift a considerable amount starting with one market then onto the next.

while at the growth stage , it changes and moves to " expand the piece of the pie " concerning
publicizing , a product at the development stage decides to " stress brand contrasts and
advantages.

The following salient features can also be identified in the growth phase of BMW. Increasing
sales, cost for customer falls, profit rise, increasing number of customers and more competitors.

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Challenges of the growth stage

Expanding Competition

When an organization is the first to bring an item into the market, they have the advantage of
practically no contest. Notwithstanding, when the interest for their item begins to increment, and
the organization moves into the Growth period of the item life cycle, they are probably going to
confront expanded contest as new makers hope to profit from a new, creating market.

Slow development in vehicle industry heightens rivalry and has impacted the BMW technique
prompting the BMW brand gaining the consolidation accomplices

Lower Prices

During the Introduction stage, organizations can regularly charge early adopters an exceptional
cost for another item. Notwithstanding, because of the developing number of contenders that are
probably going to enter the market during the Growth stage, makers might need to bring down
their costs to accomplish the ideal expansion in deals.

Different Marketing Approach

Marketing efforts during the Introduction stage will generally profit from all the buzz and
publicity that encompasses the send off of another item. Be that as it may, when the item
becomes laid out and is no more drawn out 'new', a more refined showcasing approach is
probably going to be required to capitalize on the development capability of this stage.

Effective ECO-Specialties should stress their separation. Separation implies that the promoting
blend is particular from and better than whatever is accessible from the contender; item
separation is the center to a sound piece of the pie. An overflow of choice for the vehicle
purchasers exists with vehicle models with practically comparable useful qualities, BMW is
currently compelled to fabricate remarkable items for a specific locale at a moment, and this is to
adapt to tastes and whimsical requirements of buyers. This separation winds down on their
spending plan vigorously since monetary outcomes of missing a market are terrible.

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Maturity and Decline Stage

Organizational maturity is a measure of an organization's readiness and capability expressed

through its people, processes, data and technologies and the consistent measurement practices
that are in place and the final stage of the product life cycle (after introductory stage, growth
stage and maturity stage) when sales are dropping because the original need and want have
diminished or because another product innovation has been introduced is called as Decline Stage.

Any product has four stages of life cycle: introduction, growth, maturity, and decline. However,
this concept does not quite fit with BMW's products. Jim McDowell, vice president of marketing
at BMW says, " If a product is declining, we would prefer to remove it from the market, as
opposed to having a strategy for dealing with the declining product," In other words, Maturity
and Decline stages do not usually exist in BMW's product life cycle. Before a product reaching
the Maturity stage that characterized by decreasing sales rate and declining profit, BMW pulls it
out from the market. BMW cars typically have product life cycle of seven years.

Usually any product has bell-shape curve of duration of life cycle, but BMW cars has half shape
life cycle, including introduction and growth stages. Thus, the best sales number is often
achieved in sixth or seventh year after product introduction.

BMW car has only two – stage of product life cycle, introduction and growth stages. The X5
series and the 3 series were introduced in 2000 and 2001, respectively. Based on BMW’s product
life cycle, these two series are both in the growth stage. BMW introduced three versions for each
model of the 3 series. The X5 also has three different versions that satisfied different consumer’s
preferences. BMW’s website provides a great access for its potential customers in addition to the
regular dealerships. From its website, customer can easily identify BMW’s promotion strategy. It
also shows the competitive difference, such as the luxury car, the safest car, and the most
drivable car.

For BMW 3 series, advertising campaign focuses on the concept of the luxury car under fair
price. For BMW X5 series, advertising campaign focuses on the technology for overcoming bad
climate and rough road situation and the joy of driving.

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As mentioned before, BMW’s car has only two life cycles and it requires a special marking and
managing strategy. By modifying the product, BMW successfully maintained the product in the
introduction and growth stages. BMW constants introduce new models for each series, and it
keep the entire series “new.” For instance, 3 series, BMW continuously introduced new models
each year such as sedan, the couple, to the convertible and the station wagon. BMW constantly
tries and makes the cars meaningfully different and new about every three years, and the
involves adding features and other capabilities. Thus, modifying the product becomes the main
policy for BMW to manage life cycle of each car series.

MBW has a distinctive branding system and manufacture branding. BMW has five series, 3
series, 5 series, 7 series, line z and x series, respectively. BMW all series followed by the product
line and the motor type. For example,”328” means that the car is in 3 series the engine is 2.8
liters in size. This naming system is clear and logical and can be easily understood. Moreover,
the system has a big advantage in global market. A name, such as 328 can be used in different
countries, without considering the language and cultural difference.

“The BMW website is an integrated part of the overall marketing strategy for BMW, “says Carol
Burrows, product communication manager for BMW. BMW website provides unique features to
potential customers to “Build your BMW “and that gives the customers a sense of unique and
special. That implies the BMW is the car that only fits you, not somebody else. In these features
they can design a car to their own specifications, and get all the information about the car, from
price to a specific feature. The Average price of BMW cars is above $50K and customer who
buy a BMW’s car not only for safety and joy of driving, but also showing their social status.
BMW’s car mostly falls in luxuries category so its potential customers are more likely to be high
income, professional and high education level.

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SOLUTIONS OR ACTION THAT THE COMPANY TAKEN TO FACE
THE CHALLENGES

Product development Stage

Trade-Offs

The following issues will help to make certain your business enterprise is making the proper
trade-offs:

Know your trade-offs…….,What are the current organizational selections and what trade-offs
have already been made? What trade-offs have led to your clients’ perceptions of your products?

communicate your trade-offs…….,Clear verbal exchange of change-offs will permit every

person to know where the organization intends to focus and how it intends to win. People inside
your organization can also clearly combat again on change, especially if competing economic
incentives pit numerous business gadgets inside the organization towards each other (as an
instance, one group can be incentivized for product design, every other incentivized for product
reliability, and a 3rd group for income). When a corporation has a well-communicated approach
that requires significant trade-offs inside the best interest of the business, worker incentives are
aligned closer to work sports that create marketplace boom for the company.

Differentiation…..,via design comes at a value, and it begins via taking note of patterns in what
your clients value. Rigorously making and adhering to the right tradeoffs can recognition
sources, simplify an corporation, talk a strategic route to employees, and in the end drive
differentiation and growth in the marketplace. By making the proper exchange-offs, your
business may be able to recognition on improving your offering for maximum of your customers,
maximum of the time. There is not any easy manner to make trade-offs nor any magic balm to
cause them to hurt much less. However, company that rigorously make and adhere to trade-offs
can attention their resources, simplify their business enterprise, better communicate a strategic
direction to their employees, and might in the long run power differentiation and increase in the
marketplace. Differentiation comes at a value and generally that is centered around an business
enterprise’s ability to make and decide to trade-offs.

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Economics of Products

the challenge is to make appropriate decisions during the product design stage so that subsequent
costs like material, labor and overheads. can be kept to a minimum. Every product designer who
had to make a trade-off decision would know that the decision should made mostly due to
economics.

International Rivalry

BMW’s Decision to Enter New Markets

There is increased competition among organizations as they compete for few and saturated
markets to be had for his or her merchandise. For a agency like BMW, its home market in
Germany and usually Europe is already saturated. As such, moving overseas is one advertising
and marketing method that BMW can appoint in increasing its operations.

By shifting overseas to emerging markets like China, Japan, Brazil and India, BMW could be
diversifying its marketplace to reach a wider patron network. However, with considerable
options on the disposal of customers, differentiation is vital for BMW to gain an area over
competitors. For example, BMW’s enterprise rivals have additionally different their markets. In
essence, vehicle shoppers have already got different vehicle models inside their markets, apart
from BMW models. For BMW, differentiation could allow it to offer products with precise
capabilities to overcome off competition. Such merchandise might meet the tastes, needs and
preferences of customers. Furthermore, via innovation, BMW can increase specific products at
lower costs, in comparison to rivals.

on the alternative hand, the important thing task that BMW entrepreneurs face as they circulate
abroad is stiff competition from different enterprise players. As a company with a brand new
product, BMW requires smart techniques to compete in a marketplace complete of set up car
organizations that offer fierce opposition. New BMW products ought to compete with the likes
of Mercedes, Porsche and Audi for clients. Such opposition has an immediate impact on BMW’s
product fees. One strategy that may assist BMW overcome the task is through mergers and
partnerships with already set up groups in the marketplace.

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Even because the business enterprise moves abroad, its key undertaking is marketing its new
merchandise among younger drivers. At the identical time, one of these circulate should now not
offend its older clients who're the enterprise’s profitable purchaser section. Entry into new
markets additionally way BMW has to abide by means of criminal policies within new nations.
For instance, most countries encourage corporations to increase merchandise the usage of rising
technology to lessen environmental demanding situations. Consequently, BMW need to develop
merchandise at lower costs even as on the identical time reduce pollution in its operations.
Nonetheless, with a risky car marketplace, moving abroad for a BMW can be a volatile project.

BMW’s Choice of New Markets to Enter

Market diversification for BMW can entail access into present and emerging markets. By
introducing a new product, BMW need to begin by way of entering the U.S, its biggest market
followed via European international locations like France, the United Kingdom and Germany.
Thereafter, BMW can undertake its advertising and marketing operations remote places thru
organizing subsidiaries in Eastern Europe, Africa and Latin America. Most of those regions have
proven to have high demand and feature therefore recorded excessive income previously. For
instance, China, Turkey, South Korea and India have previously recorded double-digit fees in
BMW income. China is a key marketplace for new BMW merchandise given its low penetration
charge, compared to different evolved countries. In its growth approach, BMW can have
positioned up assembly flora in those nations to boom its operations. More so, that allows you to
increase its distant places operations, BMW can extend its manufacturing capacity in emerging
markets along with India and Russia.

Market introduction Stage

On globalization

BMW can handle this over troubling issue through meticulously resolved solidifications and
acquisitions, this grant the association to secure slice of the pie and entry as well as induction to
already existing advancement, close by specialists and neighborhood brands. Moreover,
assessing ways to deal with work on the extent of useful to unfruitful clients which will overall

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run 20:80. Cultivating an overall point of view on the brand and the buyers' portfolio will reveal
new districts for expansion. Likewise, the use of existing plants in sensible regions to make or
assemble vehicles staying aware of the idea of the BMW brand will phenomenally diminish
utilitarian starting up costs.

Substitute products

BMW centers around quality and thing detachment so much that for its assigned premium
market the BMW standards stay top and the vehicle is at this point regarded.

Separation

BMW has taken on pattern setting advancement used to increase planning and the idea of the
models which are the course to advantage. Essentially the huge areas of detachment are in
elective energies and security features, ensuring the brand stays aware of uniqueness, the BMW's
2002 (sports vehicles) reliable partition was achieved, BMW use of state of the art devices make
their vehicles rich as well as enthusiastic to drive.

Natural difficulties

To fight this BMW close by other motor associations have endeavored to use a part of the
emerging progressions to get cash, lower costs and in the end help in decreasing pollution.
Toyota, Ford and BMW have combined this mentality in gathering of three lines of their
vehicles, the new BMW 7series and the fundamentally expected z4 are irrefutably projected to
embrace these environmental neighborly features, in future headway of electric vehicles and
elective fuel sources are being considered.

BMW vehicles normally have thing life example of seven years. moreover, according to Jim
McDowell, VP of advancing at BMW' If a thing is declining, we might want to take out it from
the market, instead of having a procedure for dealing with the declining thing' this care ensures
that BMW experiences are simply useful ones, the wanderer case shows how besieging
solidifications work and things being what they are of managing it BMW offered it to UK
venture company Alchemy Partners (Siciliano and Zuvich 2006). To develop advancement
BMW rather acquired gainful combinations like with excess vehicles rolls Royce. This ensures
the association by and large stays material to the market and stylish to its buyers

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Growth Stage

With the rapid globalization of the world, marketing is becoming a challenge for all sectors.
This results in increased competition among saturated markets for products. Increased
competition due to globalization of the automobile industry is a common phenomenon. Different
companies diversify their markets and try to gain more advantage over their rivals due to the
competition in the industry. For a company like BMW its home market in Germany and Europe
in general is already saturated. As such, one of the strategies that BMW can use in expanding its
operations is to establish its businesses overseas.

By entering emerging markets such as China, Japan, Brazil and India, BMW is able to diversify
its market to reach a wider customer network. Through innovation, BMW can develop unique
products at a lower cost compared to competitors. As a company with a new product, BMW
requires smart strategies to compete in a market full of established. automobile companies that
offer fierce competition.

Also, marketing new products to young drivers is a good activity to reduce competition. At the
same time, such a move should not offend the company's lucrative consumer segment, its old
customers. Entering new markets means that BMW must comply with legal regulations in the
new countries. For example, many countries encourage companies to develop products using
emerging technologies to combat environmental challenges. As a result, BMW must develop
products at lower costs while minimizing pollution in its operations.

Market diversification for BMW can be entry into existing and emerging markets. By
introducing a new product, BMW must first popularize its products in strong countries such as
the United States, followed by European countries such as France, the United Kingdom and
Germany as its largest markets. Then, BMW could expand its operations abroad through the
establishment of subsidiaries in Eastern Europe, Africa and Latin America. Many of these
regions have proven to be in high demand and have previously recorded high sales as a result.
For example, China, Turkey, South Korea and India have previously recorded double-digit sales
of BMW. China is a key market for new BMW products due to its low penetration rate
compared to other developed countries. In its expansion strategy, BMW can place assembly

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plants in these countries to increase its operations. Moreover, to increase its overseas operations,
BMW can expand its production capacity in emerging markets such as India and Russia.

The company has always positioned itself as a premium brand and premium pricing is one of the
factors for its perfect positioning. Prices of cars vary depending on the series and model of the
car.

But, to expand the company's operations in view of stiff competition, they have also launched
low-priced cars like the BMW X1. As this is BMW standard, the price starts from 22.5 lakhs.

Maturity & decline Stage

There are four major periods in a product life cycle concept which begins with the introduction
stage, accompanied by using the growth stage, then the adulthood level, and finally the decline
stage. Naturally and relatively, there are wonderful characteristics which would qualify a positive
product to be below a particular stage heading. For example, in phrases of advertising and
marketing objectives, a sure commodity that's at the introductory level opts to “create product
attention and trial,” while on the increase degree, it modifications and shifts to “maximize the
marketplace share”.

In phrases of marketing, a commodity at the adulthood level chooses to “stress logo differences
and advantages,” while at the decline stage, it alters to “lessen to stage needed to keep tough
middle loyal”. In many of the overall definitions and strategies, these attributes follow to
basically all businesses however range in intervals: “In Sweden and Britain, automobile product
existence cycles are eight years, at the same time as in Japan they're generally handiest four years
lengthy”.

In the implementation of a seven yr product cycle, BMW has devised a unique device which
demonstrates splendid advertising talent and judgment: “To keep merchandise in the
introductory and growth degrees, BMW often introduces new fashions for every of its collection
to maintain the complete collection ‘new’ .As explained, “for instance, with the 3 collection, it'll
introduce the brand new sedan model one year, the brand new coupe the following year, then the
convertible, the station wagon, and the sport hatchback” .

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BMW has controlled to apply the define of the product existence cycle idea but has ingeniously
used the levels to complete capability. As BMW makes use of the collection gadget class, it no
longer handiest allows present range in attractive to greater segments of capacity shoppers,
however the class differentiation additionally contains at the logo in pretty literally an vehicle
genre of its very own prestige.

Being a luxury vehicle emblem that uses such a exercise, the rarity and strong point of the units
within the particular series stored for a time frame are higher highlighted, for there may be a feel
of prestigious-novelty maintenance. As careworn with the aid of the Vice President of
Marketing, Jim McDowell, this fits thoroughly with employer’s enterprise hopeful ambition:
“BMW doesn’t aspire to be the arena’s biggest vehicle corporation, we already are and we need
to stay the most important premium agency”.

This way that as a brand new model is delivered in a separate collection, the alternative pretty
preceding series is still stored competitive within its diagnosed marketplace. In addition, in
addition creation of other new model series from the sedan to sports activities automobile series
now not only offers the whole product providing of the auto collection with a maintained and
secured fame of a cutting-edge and still relevant significance, however an emphasized current-to-
latest mentality unto the consumer—potential, gift, or otherwise—is likewise maximum
obviously put forward in terms of the overall employer product presenting.

This predetermined product cycle method improvement keeps a sure series’ credibility
prestigious, which enduringly and absolutely translates into the person product unit bought by
using a client, as it both implicitly and explicitly speaks of and displays a distinguished sense of
sophistication to that collection wherein that unit and owner belongs.

Moreover, BMW devices are universally exclusive in every aspect: “BMW’s positioning
approach is the same worldwide and this is to provide excessive performance, luxurious vehicles
to people. ‘You won’t see it as a taxi or a fleet car’. This association of sustained prestige inside
and among the collection is shown and dictated through administering and handling of product
creation and boom via the organization.

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CONCLUSION

The BMW group also has a strong market position in the motorcycle sector and operates
successfully in the area of financial services. The Company operates its own financing company,
which offers financing for vehicles. It is known for its performance and luxury vehicles. BMW
has a global presence with group subsidiaries in 41 countries and over 3000 dealerships and local
importers in over 100 countries. BMW is a progressive company with salad of 1.2 million
automobile and 101,000 motorbikes in 2008 generating revenue of 53.2 billion euros.

BMW is now in its growth stage. However, like other organizations, there are various challenges
in the life cycle stages.

• Trade-offs
• International rivalry
• Globalization
• Substitute products
• Separations
• Nature difficulties etc.

And also there are many solutions BMW can take to face these challenges well. By taking the
most suitable solution for each challenge, it is possible to pass each stage very easily and
properly. Not only for this organization, but in any organization, finding the most appropriate
solution for the challenges encountered in the life cycle stages, and implementing it, will lead to
higher results and the organization can easily reach its goals.

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REFERENCES

BMW. (2022). Retrieved from www.BMW.com.

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