...1 Nate Lindstrom Professor Fruchter Marketing Principles 10 February 2011 BMW Case Study Analysis According to a 2000 poll conducted by Gfk Roper, women buy 60 percent of new cars and 53% of used cars. A 2009 poll by NBC/Universal shows much of the same: ³eight of 10 women say they are involved, solely or jointly, in car purchase decisions. And a third say they make those decisions themselves´ (Motavalli, 2009). It logically follows that since women easily account for more than half of all car purchases, the marketing efforts of a car manufacturer, such as BMW, should focus on their female demographic. After all, why would they market their products to the minority demographic? Curiously, this is precisely what BMW has decided to do. In a case study of BMW¶s marketing efforts published in Marketing, 10th Edition, authors Kerin, Hartley, and Rudelius list at least three aspects of BMW¶s branding and marketing that they believe lend the most appeal. First, ³BMW is fortunate²we don¶t have too much of a dilemma as to what we¶re going to call our cars,´ says Jim McDowell, vice president of marketing at BMW. He¶s referring to the fact that BMW names their cars using simple numbers and letters²for example, the M3 or the 7 series²rather than using unique names as so many other manufacturers do (Kerin, Hartley, & Rudelius, 2011). Lindstrom 2 Second, the authors identify that BMW has been successful as placing its vehicles in four different James Bond movies...
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...BMW Case Study A. The BMW customization program “Dream It.Build It.Drive It.” for X3 series compact SUV model had driven sales across North America. Joseph Wierda, BMW product manager was contemplating using the same marketing strategy to drive sales across all BMW product lines. He was particularly interested in using this customization strategy for flagship brand X5 and a new model X4 launching in 2015. The major marketing challenges to implement this customized program were as below: * Regional and Global Manufacturing Strategy: In North America compared to Europe, customers wanted immediate delivery. Purchase of a car was a major decision and that meant there was a high emotional value attached to the purchase. Customers wanted to experience thrill and excitement attached to car purchase. To solve the problem of immediate delivery for North America and to maintain customer interest during the sales process, BMW team made significant adjustments at the plant, in BMW’s supply chain and IT systems. For X3 series, they even shifted their assembly line from Austria to South Carolina to reduce delivery time across continents. BMW‘s plant in South Carolina manufactured six different models including X5 and X4. For other models which are not manufactured in North America immediate delivery in few weeks would be difficult to achieve. As models manufactured outside North America meant increased shipping time between continents. So, the concept of “Dream It.Build It...
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...Case Study # 7: BMW Automobiles INTRODUCTION PROBLEM BUSINESS ENVIRONMENT Pestel Analysis Political * Geopolitical tensions and concerns about oil supplies, added to the uncertainty about the political environment due to war. * Employment laws vary in Europe, US and Asia. Economical * The financial crisis reduces the disposable income of consumers. * Taxes imposed by governments due to car’s emissions. * Equity prices fell. * Oil price went up so the derived product’s prices when up as well. Social * BMW have diversified into many different markets and countries meaning that they are dealing with different cultures, expectations, values and incomes. * Customers’ predisposition to select design and prefer brand appeal. Technological * BMW has had to invest in technology in order to maintain its competitive advantage and be able to offer high quality vehicles. * Developing eco-friendly technologies. Environmental * CO2 emission laws * Development of eco-friendly vehicles Legal * CO2 emission laws * Taxation laws in the countries where BWM has presence. As a result from the PESTEL Analysis we can conclude that BMW will require a good marketing plan to preserve their market position. Also, their employees will need to have to skills to develop sustainable technology; they will need to have the knowledge of the current legislation and how to implement it. We can conclude as well that...
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...the pricing and distribution of their products. However, there are not that many small parts manufacturers in this market and therefore, the majority of suppliers to major automotive makers are medium to large businesses. As a result they have some flex in determining product pricing, delivery, and distribution. Power of Buyers - Medium While buyers are individuals and are not grouped together, they still have an immense amount of information available to them regarding the pricing and cost to manufacture a BMW. As a result, buyers do have some leverage in being able to negotiate a purchasing price from BMW. Competitive Rivalry - Extremely High Any competitor in this market is generally a global company with billions of dollars in assets and can compete on any level that BMW can. Furthermore, there is intense competition on all fronts in the car market in general, not to mention the luxury car market. Major manufacturers such as Toyota and Honda are pinching BMW with their luxury segments (Lexus & Acura) in terms of quality product and...
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...lead time of product development in BMW from 60 months to 30 month. As a result, the firm can incorporate reflect fickle customers’ tastes and the latest technology to their product development quickly and it enable them to fit the market needs strategically. If this change is successful, the experience and knowledge can be transferred to 7-series and all other new projects. It will make BMW in front of the competition. And it will save huge money and time of the firm. 1-2. Digital technology, such as CAD, is considerably effective to reduce product development lead time even in other competitors. Considering digital technology as hardware, its directions and capability of staff operating the technology, however, might be critical issue on product development using digital technology. Moreover we should not ignore the fact that the capability and experience would be brought as a result of learning and accumulated experience and knowledge. 1-3. 3-series touring wagon will inherit platform and basic design concept from 3-series sedan. Fortunately the current 3-series sedan has been developed through computer design process. Therefore, it can be thought that there is some accumulated experience of product development using computer design. Additionally, the staff had realized its untapped potential as strategic product development tool. In other words, by adopting the development project as pilot experiment of the digital project, we think that BMW can accumulate and develop the competences...
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...vision to produce a premium brand automobile was a factor in this auto’s industry model. They faced competitive conditions in the auto industry such as over capacity, economic and market downturns, increasing competition from other makers such as Ford, Daimler-Chrysler and other major auto manufactures. Although BMW performed well during this period of competitive conditions, with production steadily increasing and commanding a premium price for their product, BMW reported a net loss in 1999. However, it was back making a profit in 2000. In 2001, BMW was able to increase retail sales by 10% in a stagnating world market. I believe, their customer service, environmental concerns; made to order, as well as their brand was and is a contributing factor to their success. Maintaining the brand at a premium level in every market sector from the mini to the Rolls-Royce makes them very consistent in the auto making industry and this is what consumers want to purchase. Due to the market downturn, consumers were purchasing less expensive automobiles such as cheaper brand names like Ford, Chevrolet, or overseas made auto’s such as Honda, Toyota or used verses new. For BMW to survive this economic downturn they needed to rely on their brand and produce a quality product for people to purchase. Helmut Panke the current CEO was trained as a physicist, worked as a nuclear researcher and taught at Munich University. What a great background for an automobile CEO! Physics is the science...
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...BMW, renowned as one of the world leaders in the production of precision automobiles is not a company that has rested on the laurels of it products nor has the company allowed its success to hamper efforts to expand and remain a top competitor in the global market today. Begun as Rapp Motoren Werke, in Munich Germany, as an airplane engine manufacturer, in 1916 by Karl Friedrich Rapp, a well know engineer. (Rudelius, 2011) Nearby, Gustav Otto, set up his own shop, Gustav Flugmaschinefabrik, building small aircraft. Due to Rapp’s manufacturing problems, his company secured a contract with Austro-Daimler in order to fill orders that they could not keep up with; ultimately, Austro-Daimler expanded too quickly and was not successful. In 1916, Rapp resigned from his company and Franz Josef Popp and Max Friz, two Austrians, took over the company. In March of 1916, Rapp Motoren Werke merged with Gustav Flugmaschinefabrik to form Bayersiche Flugzeungwerke. It was renamed Bayersiche Motoren Werke (Bavarian Motor Works), which is today known as BMW. In 1917, BMW’s first aircraft, the type IV, went into production. Flying the type IV aircraft, in 1919, Franz Zeno Diemer set an altitude record of 9,760 meters. Due to restrictions set by the Treaty of Versailles, BMW briefly switched from the manufacture of airplanes to the manufacture of railway car brakes. In 1922, BMW was again to begin the making of aircraft engines. This period was marked by many successes as shown through no fewer...
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...http://hwcampus.com/shop/busn620-week-1-assignment/ Title: Week 1 Due Date: End of Week 1 1. Read weekly announcement 2. Participate in the weekly forum. 3. Review weekly assignments in the syllabus. 4. Please complete the following for your week 1 written assignment: Read Case #16- BMW of North America and answer the following questions (each question a subsection): 1. What is fueling BMW's Growth? 2. How is BMW Doing in the U.S? Compare the following 3 years (2012, 2013, & 2014) in terms of annual revenue, car sales, gross margins and end year stock sales (outside research required). 3. Is the "Dream It. Build It" program a sustainable advantage in the long term? Do you see any room for further improvement? (link to other companies to add depth; i.e. Ikea, etc.) 4. Do you think customers really need "millions of combinations" for their car? Can they be happy with available standard options? What are the downsides of mass customization? 5. How does this case study link to the topics presented in Chapter 1, Chapter 2 & Chapter 3? 6. submit your responses to the Weekly Assignment Folder: Additional resources for Case Study: • https://www.youtube.com/watch?v=8Ddq6O_QAz0 • http://www.anthonymonahan.com/BMW-Dream-It-Build-It-Drive-It Post/submit homework to the assignment folder for grading. Make sure you provide substantive graduate level answers. Review examples in resource section, grading rubric and APA guide prior to final submittal. Make sure you use adequate,...
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...ACCOUNTANCYS (Hons) MGT 4201 STRATEGIC MANAGEMENT JANUARY 2016 SESSION GROUP ASSIGNMENT (20%), A. GROUP ASSIGNMENT’S TASKS You are required to read the attached case study thoroughly. Harley-Davidson, Inc.: Troubled Times Increase H-D’s Reliance on International Sales Task You are required to write a term paper answering the below-mentioned questions based on the given case-study. Question 1 With reference to Porter’s Generic Strategies, which generic strategy is Harley Davidson using? Illustrate your answer with relevant theory or case scenario information. (10 marks) Question 2 Critically evaluate the effectiveness of the strategy you identified in Question 1) above for all the countries described in the case. You need to use case scenario information or relevant theory to illustrate/support your answer. (15...
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...High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/6c92feaa-fc0f-11e0-b1d8-00144feab49a.html#ixzz2Cu5c99bj Case study: Diageo By Abby Ghobadian The story: After a series of mergers, demergers and acquisitions, the management of Diageo, the conglomerate formed by the 1997 merger of Guinness and Grand Met, made a strategic decision to focus on premium alcohol drinks. Diageo was in charge of an expanding and wide-ranging collection of brands, some of which had broad appeal across many countries while others had more regional appeal, sometimes limited to just a few markets. The challenge: After both organic growth and acquisitions, three key dilemmas emerged by 2002. First, how to manage brands with significantly different appeal, such as Guinness, a brand with strong Irish roots but huge global appeal, or Buchanan’s, the leading Scotch whisky in Latin America. Second, how to rejuvenate tired brands and third, how to improve the market share of the most successful brands, such as Captain Morgan, J & B, Smirnoff and Johnnie Walker. The initial strategy: To help managers maintain focus and allocate resources, Diageo developed three brand classifications: global priority, local priority and category. The global priority brands were the big sellers that were...
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...Harley Davidson Case Study Case study of Harley Davidson Alan Potrus California Baptist University Author Note: This paper was made for Professor Joe Putulowski in accordance to week 6 assignment instructions for The Harley Davidson Case Study. Intro CEO Jeff Bleustein had his work cut out for him at the end of 2003 when he reviewed the company’s financial statements for the year. It was Harley Davidson’s 100 year anniversary and there were many festivities set out for that year that would eventually attract millions of participants. Sales and profits had broken previous records for the eighth consecutive year. HD has been performing so well it made a 180 degree turn in comparison to its numbers in the early 80’s when it was putting out 40,000 bikes a year and struggling with a mountain of debt. Jeff now had to figure out how to continue the uprising of profits. Because of this, Bleustein had little opportunity to reminisce about Harley’s 100 year celebration. Jeff set a target of 400,000 motorcycle sales by 2007. Jeff knew that in order to achieve this goal he needed to set a prestigious strategy plan that would accommodate the market for motorcycles and possibly attract new customers into the motorcycle market. Harley-Davidson’s Strategy Bleustein began preparing a strategy review with his top management team. They discussed the different forces that would cause HD to fall off course. It is interesting...
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...Case Study: Should He Be Fired for That Facebook Post? 1) What are the issue(s) arise in Downcity Motors? Elaborate it Insufficient in employee handbook According to the case study, Downcity Motors did not have a proper policy regarding the actions have been done by James Kenton. They have not yet updated their employee manual to cover the issue regarding the social media. The management actually has been talking about this for months, but they kept dropping down on the to-do list instead of take action regarding this issue. Do not consider the opinion of employees According to the case study, it has addressed that Kenton used to come to Susannah and Toby to discuss about the issue in the Mercedes Benz event and expressed his opinion. However, they decided to ignore their comment. Highly engaged employee like Kenton normally is enthused about their organization and care about its success. When they are less given chances to express their opinion in the organization, in the sense of participation, more likely it will demotivate the employees and employees do not feel their value to the company. Lack of two way communication in Downcity Motors Downcity Motors seems did not promote feedback channel from its employees. The organization seems using the autocratic management style where employees need to follow everything that decided by the upper management. Like Dell wants his daughter to fire Kenton with a strong word of “He got to go”. Besides, even when a particular...
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...Research Project Submitted to the School of Graduate Studies of the University of Lethbridge in Partial Fulfilment of the Requirements for the Degree MASTER OF SCIENCE IN MANAGEMENT Faculty of Management University of Lethbridge LETHBRIDGE, ALBERTA, CANADA © Salvador Barragán, 2005 ii Abstract It has been ten years since the signature of the NAFTA agreement among Canada, U.S., and Mexico. For Mexico, this was a decisive step away from a protectionism model toward a free trade market. One of the main purposes for Mexico in joining NAFTA was to increase the competitiveness of its manufacturing sector, especially the automotive industry. In this paper, Porter’s Diamond Model of national competitiveness and some critiques that attempt to extend the usefulness of the model are analyzed. The Doubled Diamond and the role of MNEs in a host country are both examined through a case study research of the foreign-owned automobile industry in Mexico. The findings of this study show evidence of a broader role of MNEs than in the original framework, as well as the usefulness of the doubled diamond extension to explain alternative sources of competitiveness in early stages of development. iii Acknowledgments The culmination of this thesis can be seen as a successful project. An analogy with Porter’s Model, one of the premises to have a successful industry is to have supporting and related industries. In the case of this thesis is not the exception. There has been...
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...GOOD PRACTICE CASE STUDIES IN UNIVERSITY-BUSINESS COOPERATION PART OF THE DG EDUCATION AND CULTURE STUDY ON THE COOPERATION BETWEEN HIGHER EDUCATION INSTITUTIONS AND PUBLIC AND PRIVATE ORGANISATIONS IN EUROPE EUROPEAN COMMISSION Directorate-General for Education and Culture Directorate C: Lifelong learning: higher education and international affairs European Institute of Innovation and Technology; economic partnership Public open tender EAC/37/2009: CONTENTS CONTENTS INTRODUCTION Scope of report Introduction to UBC Elements in the UBC Ecosystem 5 5 5 5 AIMS & METHODOLOGY Introduction Objective Process for selection Basis for selection Countries considered in the selection of the cases Case study partners 7 7 7 7 8 8 9 CASE STUDIES Case study key insights Classification of countries Nature of case study Case study quick-find 10 10 12 12 13 NORTHERN Europe Case 1: SEA, Denmark Case 2: ETM, Estonia Case 3: Demola, Finland Case 4: REAP, Ireland Case 5: Mobility at UL, Latvia Case 6: CSE, Sweden Case 7: SMIL, Sweden Case 8: SPEED, UK Case 9: IDI/Digital City, UK Case 10: Acua Limited, UK 18 19 25 30 35 41 46 52 57 63 70 76 80 84 90 96 EASTERN EUROPE Case 11: GIS, Bulgaria Case 12: TTO Pécs, Hungary Case 13: The Science and Economy Project, Poland Case 14: WCTT, Poland Case 15: Q-PlanNet, Romania 75 1 © Science-to-Business Marketing Research Centre CONTENTS SOUTHERN EUROPE Case 16: MUHC, Malta Case 17: PNICube, Italy...
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...beginning of the 21st century, its CEO/ Chairman, Yang-Ho Cho undertook various transformation initiatives - for instance, improving service quality and safety standards, technology integration, upgrading pilot training, better business focus; putting in place a professional management team, improving corporate image through sponsorship marketing, etc. He gave a new corporate direction in the form of '10,10,10' goal. However, Korean Air is held up by a slew of challenges. Among which are inefficiencies of - Chaebol system of management, possible clash of its cargo business with its own shipping company, limited focus on the domestic market and growing competition from LCCs. How would Korean Air manage growth as a family-owned conglomerate? The case offers enriching scope for analysing a family business’s turnaround strategies, with all the legacy costs involved. Pedagogical Objectives • To discuss the (operational) dynamics of Korean Chaebols - their influence/ effects on the country’s industrial sector and the economy as a whole • To analyse how family-owned businesses manage the transition phase - from a supplier-driven economy to a demanddriven economy • To identify all the possible reasons for Korean Air ’s turbulent times and assessing whether they are controllable or not • To critically evaluate Korean Air ’s transformation efforts - in terms of growth, productivity and cost cuts, especially the efficacy of '10,10,10' goal in a family-run business • To identify various challenges...
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