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Bmw Case

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BMW is one of the three European luxury vehicle powerhouses. BMW is known for its high end luxury vehicles but when the company was founded, automobiles were not its number one priority. In fact BMW didn’t start creating automobiles until 13 years after BMW was founded. BMW was founded March 7th 1916. Originally BMW mainly produced aircraft engines. They produced these engines until the end of World War 1. The Versailles Armistice Treaty halted their production because their engines were used in military planes. BMW changed gears and began to produce motorcycles in 1923 and finally started to produce automobiles in 1929. In 1928 BMW acquired the production plant of the popular Austin Seven. They released their first vehicle in 1929 which was the BMW 3/15 PS DA 2. Since then BMW has grown and grown acquiring several more automotive companies over the years to expand their brand. In 2012, Forbes.com stated that BMW is the most reputable company in the world. By the numbers, BMW is astonishing. In 2012 BMW produced over $100 billion in revenue with roughly $7 billion in profit. The fact that BMW has market presence in over 150 countries helps us understand where all the money comes from.
Just recently in 2003 BMW entered the Chinese automobile market. Since then China has become BMW’s 2nd largest market ahead of the USA. They chose China for several reasons. The main reason is because of the extreme amount of potential that the Chinese Market has to offer. The first projection for the Chinese market is the amount of people that will own vehicles. The markey is going to sharply increase from 50 out of 1000 to 400-500 out of 1000 citizens will own vehicles. This is due to the increase of the Chinese economy. The vehicle is very important to the Chinese because it shows their status. It is common for a citizen to buy a car equal to the amount of their yearly salary. With the economy on the rise, also is wages. Higher wages means higher salaries which allows for people to afford more expensive luxury cars, such as BMW.

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