An Internal Analysis of BMW’s strength

BMW was formed in 1916 as an aircraft engine manufacturing company. Today’s BMW has become a leading automobile manufacturing company. It focuses on manufacturing luxury vehicle. So, what internal factors give BMW an advantage in meeting the needs of its target market? BMW is customer friendly. In its website, it allows customers to build the car of their dream. BMW also send text message to its customer reminding them to buy winter tires and directing them to a dealership. It also provides financial service to individuals for financial solution and investment planning.
BMW has always been premium brand oriented company. It manufactures three brands in BMW, MINI, and Rolls-Royce. These brands occupy various high-end market segments from small car to luxury premium car. This leads to BMW become the only both premium car and motorcycle manufacture. Each brand within BMW has its own clear brand image. Its products have rich product connotation in aesthetic and dynamic design, dynamic performance, technical content, and overall quality. Thus, it can provide customer with practical value.
Build on this basis, BMW can expect higher margin and continuing to maintain profitable growth, and ensure its independent status. BMW is also known for attaching great importance to technical innovation. The company received the Outstanding Corporate Innovator Award in 2002 as well as Germany’s “most innovation company” award in 2004.

The cornerstone is, as defined in May 25 Automotive Industry journals, “(BMW’s) strategic focus on customer-friendly innovation, couple with an approach to innovation management that is unique within the motor industry. Brake energy regeneration, dynamic stability control (DSC), high precision injection system, V10 high-rev engine, and etc. all prove BMW’s technical innovation accomplishments. Marketing strategy design success is crucial for BMW’s success. It cannot be separated from its success in brand positioning, product strategy. “The Ultimate Driving Machine” is BMW’s slogan. This demands a combination of design, power, and technology which established its “noble, young, dynamic” image.
BMW’s communication strategy is based on at least one of them, and each element definition take into account customer base. BMW’s product strategy is elegant. BMW has a wide range of cars. They are group into different series. From smaller and stylish 3 series, to secure and comfortable 5 series; from high-end 7 series, to unique and elegant 8 series two-door sport car, all cars possess BMW’s elegant style, potential power, high-quality workmanship, and unsurpassed safety standard. It further secure BMW’s image.

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