The Ultimate

Driving Experience.

Presented by: Arbër Hoxhallari

 History
1916 - Establishment of BMW.
1941 - BMW in World War II.
1951 - The BMW 501. The first post-
war BMW automobile.
1969 - Motorcycles production.
1973 - The BMW headquarters and
the Museum.
1973 - Worldwide creation of sales
subsidiaries.
1994 - BMW goes to the USA.
1998 - Rolls-Royce comes to BMW.
2007 - Opening of BMW Welt.
2007 - Takeover of the Husqvarna
brand.
2007 - Strategy Number ONE.
 Mission Statement
• The BMW Group is the world’s leading
provider of premium products and
premium services for individual mobility.

• BMW Brand - "The BMW brand stands for

one thing: sheer driving pleasure. Sporting
and dynamic performance combined with
superb design and exclusive quality."

• MINI Brand - "The MINI brand wins hearts

and turns heads. MINI is refreshingly
different: extroverted, spontaneous and in
every respect something out of the
ordinary."

• Rolls-Royce Brand - "For over 100 years,

motor cars of the Rolls-Royce brand have
stood for truly outstanding engineering,
quality and reliability."
 Vision

Three brands, one vision - to

become even better.

Thanks to our uncompromising

focus on premium, BMW Group
automobiles and motorcycles
inspire more people around the
world today than ever before.
 Values
 SUSTAINABILITY MANAGEMENT - Sustainable
operations enable us to leverage new opportunities, minimize
risks and overcome social and business challenges.
PRODUCT RESPONSIBILITY - For us, product
responsibility begins at the vehicle development stage and
continues throughout the value chain, with customer support
provided until long after the utilization phase.
 GROUP-WIDE ENVIRONMENTAL PROTECTION - We
aim to be the most resource-efficient carmaker in the world.
SUPPLY CHAIN MANAGEMENT - We aim to work with
our suppliers to firmly establish sustainability throughout our
supplier network.
EMPLOYEES - Attractive jobs, diversity, equal
opportunities and the well-being of our employees are of the
utmost importance to us.
CORPORATE CITIZENSHIP - We place the focus of our
Corporate Citizenship activities on those areas in which we
can apply our core expertise to achieve specific and
measureable improvements.
 Goals

Implementation of its
successful Strategy Number
ONE.

Launching its innovative

BMW i3 and BMW i8.

Around 2000 new hires in

2013.

Building the most reliable

vehicles.

Over 1.5 million vehicles

sold every year.
 Strategic Capabilities

• Brand reputation.
• Technology.
• Worldwide presence.
• Skilled workforce.
• Huge budget for R&D.
 Comparison

BMV Audi

•Founded in Munich in 1913 •Founded in Zwickau in 1909

•1,380,384 cars sold in 2011 •1,455,000 cars sold in 2012
•105,867 employees in 2012 •60,000 employees worldwide
•Revenue 76,8 b € in 2012 •Revenue 48,8 b € in 2012
 Comparison

BMV Lexus

•Founded in 1989
•Founded in Munich in 1913
•467,566 cars sold in 2012
•1,380,384 cars sold in 2011
•Revenue 16,6 b € in 2012
•105,867 employees in 2012
•division of Toyota Motor
•Revenue 76,8 b € in 2012
Corp.
 SWOT Analysis

Strengths Weaknesses
Brand image Poor performance in Asian markets

Quality products High cost structure

High employee productivity Less strategic alliances

Motorcycle as a niche product Male dominated

Innovation High maintenance cost

 SWOT Analysis

Opportunities Threats
Growth in Asian markets High competition

Rising Green awareness Currency risk

Increasing fuel prices Green awareness

Expand brand portfolio Environmental protection regulations

Change in oil prices

Recession in EU countries
 TOWS Matrix

O T
•Focus on BRIC Countries using •New innovations to match EU
its strong brand image vehicle regulations
•Considering green awareness to •Strong brand image helps BMW to
invest in hybrid and electric cars overcome recession
S

•Build new production facilities in •High competition in Asian countries

Asia to lower wages •Recession can decrease sales of
•Expand brand portfolio to attract BMW expensive cars
young people and women
W
 Porter’s 5 Forces

• Threats of new entrants: Low

The threat of new entrants in case of automobile

industry is low because a very large capital is
required to build a manufacturing plant. Also it
takes a long time for new entrants to get a
reputation and become a strong competitor.
 Porter’s 5 Forces

• Threats of substitutes: High

BMW has the image of a powerful and luxurious

car and is positioned in the same range where
exist many substitutes for it like Audi, Mercedes,
Lexus, Porsche etc.
 Porter’s 5 Forces

• Bargaining power of buyers: High

Here the bargaining power of buyers is high

because the consumers can decide which
product to choose considering the price and
environmental issues.
 Porter’s 5 Forces

• Bargaining power of suppliers: Medium

The bargaining power of suppliers is high in this

industry as the suppliers can dedicate the price
for the raw materials, but also a long term
collaboration creates a trustful and stable
environment between them.
 Porter’s 5 Forces

• Competitive rivalry: High

Competitive rivalry is high in this industry. The

dominant US and European companies are also
facing firm competition from the Asian
companies in the same markets.
 Pestel
• Political
• Environmental regulations.
• Taxes and government’s foreign policies.

• Economical
• Recession in EU and many other countries
• Decrease in the exchange rate if euro.
• Economic downturn in the US market.
• Buying power in the developing economies like India and China.

• Social
• Changes in the customer preferences to fuel efficiency cars.
• Changes in buying pattern of the consumers due to recession.
• Environmental issues.
 Pestel
• Technological
• Increase in use of technology to gain a competitive advantage.
• Use of innovative design
• Modifications on technology to protect environmental pollution

• Environmental factors
• Increasing awareness on global warning.
• Shift in consumer’s preferences towards use of eco-friendly cars.

• Legal factors
• Restrictions and pollution norms set up in EU and US.
• Regulations for imported cars in some countries.
 Key Drivers of Change
From the PESTEL analysis and the Porter’s 5 forces,
the key drivers of change are:

• Consumer preferences.
• Use of design as a great asset.
• Technological advancements.
• Environmental issues.
• Brand management.
THANK YOU !

Questions?