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How far do the relative strengths of BMW's strategy arise from a specific combination of internal resources, capabilities and key value creating activities?

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  1. Resources
    1. Tangible resources
    2. Intangible resources
  2. Value creating activities
    1. Primary activities
    2. Support activities
  3. Strengths and weakness
    1. Strengths
    2. Weakness
  4. Conclusion

After World War II, the automotive industry experienced a euphoria as more people were able to buy cars. It resulted in an increasing competition in this industry and carmakers had to find ways to sell their cars. Two major segments emerged from those years, the mass-market segment and the luxury segment. The first one was competing on cost reduction while the other one was competing on the quality and the brand appeal. The second one was obviously far more attractive as it brought more profits. Today, this segment is still very attractive as we can see with the growing Tata Motors, which just bought Jaguar in a way to make bigger profits. The following case study is a reflection about the resources BMW has got to compete and to become one of the biggest players under the luxury segment. To understand the strengths of BMW, an internal environment analysis of BMW's capabilities and competences will be conducted after having brought to light the core resources and the value creating activities of BMW.

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