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BMW case study

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  1. Internal diagnosis
    1. Strengths and weaknesses
    2. Resources and competences
  2. External diagnosis
    1. Opportunities and threats
    2. Porter's five forces
  3. Future recommandations

BMW was founded in 1916. The company prospered during World War I as it used to manufacture aircraft engines for the Germans. It started as a small business which has now turned into one of the most famous car companies in the world. Before establishing any opinion about the company, it is essential to know what its activities are and also about its SBUs (strategic business units); and that can be divided into three:

[...] A second option would be the possibility of acquisition or creation of a fourth brand: getting a new brand through acquisition can be difficult to achieve as the group has to identify an appropriate automotive brand that would meet BMW's requirements and also fit with the corporate image; besides, the creation of a new brand is an option and that must match with the group's culture. Without changing its current range of products, BMW can continue to focus on its inherent, current range of products and also keep in mind its existing customers. It can be achieved through improvement of product quality and levels of service along with promotional activities. It also encompasses heavy investments in technologies and R&D. This strategy is necessary for BMW to secure its customers loyalty. In the same way, it is also possible [...]

[...] BMW has expanded its production capacity and its plants to the US (increase of in 2002), the UK and China. In addition, the group has set a worldwide sales target of more than 1.8 million vehicles by 2012 and 2 million in 2020. This could lead the group to the planned route of product development strategy: as it has increased its production capacity, the company could take full advantage of it to exploit its technologies and make benefit from innovation in order to maintain its position as a product innovator. [...]

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