BMW SWOT analysis

In this essay I will present a SWOT analysis of one of the largest car makers, BMW, and identify the capabilities that they have, which will enable them to sustain a competitive advantage in automobile industry. First there is introduction of general view of the automobile industry to explain the complexity of it, and after that a BMW analysis.
In the period from 1990 to 2001 automobile industry has undergone major changes. Consolidation was moving forward very rapidly and almost 69% of the automobile market was owned by six international giant companies. European market specifically faced a furious competition, the high technological advancement and the level of quality achieved by most manufacturers radically decreased the opportunity for product differentiation. Also, huge increase in productivity happened due to consolidation. These factors made price competition the prime strategy for. Customers, environmental constraints and petrol prices also helped in creating this insensitive environment and obliged many companies, mainly midsized players like BMW to rethink their business strategy in order to survive.
Bayerische Motoren Werke Group (BMW) is one of the world’s leading luxury car makers. Founded and based in the Germany, BMW employs 820,000 workers in plants in Germany, USA and South Africa. In 1959 Herbert Quandt bought BMW, when the company was in financial difficulties, now they own 46% of the BMW shares.
The powerful reliable performance and their luxurious design made BMW “The ultimate driving machine”. Until 1990 BMW strategy was to focus on the high performance of its products. Later the high competition and the rapid development of its competitors forced BMW to think of expanding its range of products, to join the ranks of the auto industry super power. In 1994, the German car maker BMW bought Rover from British Aerospace. The strategic thinking was that the acquisition would allow obtaining significant...

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