BMW Automobiles Case Study

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BMW Automobiles Case Study Introduction

SWOT Analysis is followed by organizations to control its power or potency and mainly deals with internal factors. It also takes care of languish of the organization. PESTLE Analysis can be defined as the mold or apparatus, used to explore and guide voluminous condition or the external market environment of an organization.

Company Name

BMW

Type of Industry

Multinational Automobile Company

Headquarters

Munich, Germany

Sales/Revenue

€97.48 billion

Area served

Brazil, India, China, Mexico, South Africa, United States and United Kingdom

Number of stores

440

Competition

Audi, Mercedes Benz, Volkswagen and Porsche

USP

One of the top sellers of luxury automobiles

Target Group

Upper class social group

Products

Self-driving cars, fuel efficient cars with innovative designs

Website

https://www.bmwgroup.com/en.html

BMW Automobiles SWOT Analysis

Strengths

  • BMW has succeeded in witnessing a strong global presence being a luxury automaker and the brand depicts a sign of prestige
  • The workforce of BMW has created an assemblage of more than 100,000 highly expert employees who works incessantly work in more than 100 countries
  • Most of the cars that are produced by BMW are fuel efficient and are designed exclusively to reduce carbon emission

Weaknesses

  • The brand is getting affected due to airbag issue and proficiency seems to be less, affecting the operational cost
  • BMW has only three names under them: BMW, Mini and Rolls Royce
  • This group has very few strategic alliances due to which, there are high chances for competitors to replace this brand

Opportunities

  • There are chances for BMW to prosper more due to its high demand in the Chinese automobile market. The benefit lies in the production of a wide range of innovative automobiles
  • The commencement of BMW 9 Series generation.
  • The relation with other automobile companies can increase in its strategic structure.

Threats

  • The price of raw materials is gradually increasing.
  • Due to malfunctions, the brand image is getting affected
  • BMW seems to be lacking in planning related to partnerships in comparison to other competitors like Audi, Mercedes Benz, Volkswagen and Porsche.
  • Future financial crisis can happen due to excess pricing technique.

Analysis

As per the case study of BMW, it has been observed that the company has succeeded in an immense way by presenting its position globally. It has established its position as a luxury automaker and one of the famous brand companies, which is known as a sign of appreciation and prestige (Schönmayr, 2017). As per the case study of BMW, it has been observed that, the workforce of the company has hired more than 100,000 employees who are well trained and are experts in their work. It seems that the brand is getting affected for the use of airbags.

As per the case study of BMW, this company lacks in coalition, which can be perilous as the other competitors can replace the brand. As per the case study of BMW, it has been observed that the company has high demand in the Chinese market (Gaubinger et al. 2015). The opportunities lies in the production of new wide range of innovative automobiles like the new BMW9 series generation. As per the case study, it has been observed that, it can lack in its brand image due to the increasing price of raw materials and is also getting affected for the malfunction. As per the case study, the company fails in partnership in comparison with other competitors.

BMW Automobiles PESTLE Analysis

Political

  • Germany is affected by a specific system of authority which is made many years ago mainly based on government.
  • Motor vehicle tax is mandatory and needs to be paid in advance following the request of the local tax company
  • According to German Employment and Labour Law 2019, full salary of 6 weeks needs to be paid to employees in case of weakness or accident

Economic

  • The automobile industry of German produced low raw materials
  • German automobile industries is the main producer of wind turbines and the technology that is related to solar power
  • The exchange rate of Germany is €0.013, which is compared to other countries.
  • The annual German inflation level is 1.7% which is below than other countries inflation target level.

Social

  • German is more towards perfectionist, maintains values and well planner.
  • It varies in social class and attitudes and more stoic

Technological

  • This industry spent €39 billion in R&D
  • Technological awareness is based on complex surroundings, as the technological world is developing day-by-day

Legal

  • Developing interest of the employee in the individual given employment law.
  • The Consumer Protection Law 2013 has provided authority to customers to ask for a guarantee of at least 2 years
  • The German Anti-Discrimination Law 2016 is not allowed in case of work and also in the work place.

Environmental

  • The industries related with production, agriculture, tourism can get affected because of the climate change.
  • Lack of eco-friendly raw materials have become a great issue for this industry

Analysis

It is a mandate for employees in Germany to be paid 6 weeks’ salary in case they are sick, this system is done based on the labour law and German Employment Law 2019. In addition to the above-mentioned political factors, it can be added that the German Government took initiatives for automobiles to follow an exact value system (Barik and Kumar, 2018). As per the case study of BMW, the concerned country has been analyzed to be highly innovative in making automobiles. Technologies that are in trend in US include Predictive Automobile Technology, Automatic High-Beam control and Autonomous Vehicles (Dauth et al. 2017).

As per the case study of BMW, it has been observed that this automobile company maintains social class and a great planner in terms of automobile industries related case. In case of technology, the above mentioned country spends a huge amount for the better presentation and innovations in technology. In case of legal actions, it is to make sure that the employees are getting interest in their given work. The Consumer Protection Law 2013 takes care of the needs of clients (Elangovan, 2016). As per the study case, it has been observed that for the climate changes the automobile industries in Germany are getting affected and the lack of production of raw materials can be a great issue in the future.

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References

Reference

Barik, B. and Kumar, S., (2018). Macro Environment of Indian Life Insurance Business: A PESTLE Analysis. Bimaquest, 18(3).

Dauth, W., Findeisen, S., Südekum, J. and Woessner, N., (2017). German robots-the impact of industrial robots on workers.

Elangovan, K., (2016). Communication to the editor: Friction stir welding (FSW)-accelerating automobile industries. International Journal on Design and Manufacturing Technologies, 10(2).

Gaubinger, K., Rabl, M., Swan, S. and Werani, T., (2015). Innovation and product management. Innovation and product management: A holistic and practical approach to uncertainty reduction, pp.83-113.

Schönmayr, D., (2017). A SCOT Analysis, Future Perspectives and Scenarios on Recycling. In Automotive Recycling, Plastics, and Sustainability (pp. 111-124). Springer, Cham.

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