BMW STP Strategy
BMW STP Strategy
BMW STP Strategy
Intensity of Competitors
ACHIEVEMENTS
Its sales last year set a new record of 1.37 million vehicles. It's
pushed DaimlerChrysler AG's Mercedes-Benz aside to become the
second- biggest-selling luxury car brand in the U.S., after
Toyota Motor Corp.'s Lexus. It has the kind of cult status among
owners other car companies can only envy. And it's taken the low-
budget, English Mini Cooper and made it a favourite of the post-
college set.
The best evidence that BMW is looking over its shoulder: It now
gives U.S. buyers incentives that average $4,000 a vehicle, almost
double what Lexus and Mercedes offer.
BMW was formed in 1917, from the merger of two small aero
engine
makers. Their famous blue and white symbol stems from the colours
of
the Bavarian Luftwaffe and is said to resemble the view of the one
of
their plane through a propeller. BMW is renowned for its sporty,
sophisticated & luxury image which has been built up since the
1970's with many motor sport victories ranging from Touring Car to
Formula 1. BMW Group's worldwide mission statement is: "To be the
most successful premium manufacturer in the industry.”
SEGMENTATION
POSITIONING
Positioning is what the customer believes and not what the provider
wants them to believe. Positioning can change due the counter
measures taken at the competition. Managing your product
positioning requires that you know your customer and that you
understand your competition; generally, this is the job of market
research not just what the entrepreneur thinks is true.
• STRENGTHS
•Diverse ranges of Products -BMW, MINI and Rolls-Royce
•Strong Cash Flow Position
•Increase turnover and trading profits
•Strong Balance Sheet
•World's leading Premium Quality Automobile Manufacturer Brand
Awareness
•Human resources
•Capabilities to turn resources into advantages OPPORTUNITIES
•New Products
•Market shift to globalisation
•Innovation & Alliances
•Customers demand change to more comfortable and relevantly
cheap cars
•Diversification
•New Technologies in Automobiles
• WEAKNESSES
•Perception of High Prices
•Customer disinterest
•Environmental issues: Pollutions
•Buyer sophistication and knowledge
•Substitute products or technologies
• THREATS
•New & existing competition
•Volatility in Price of Fuel
•New legislations
•Consequences of the oil crisis
•September 11th
•Economic recession
•Market shift to globalisation
•Takeover bids
•Far-East Automobile companies expansion
•Extremely high competition for customers and resources The Five
Forces Model
Potential entrants Suppliers
A Competitive Rivalry
Buyers bargaining power
Threats from Substitutes