Bmw Group Case Study

Introduction

The BMW Group is the only manufacturer of automobiles and motorcycles worldwide that concentrates entirely onpremium standards and outstanding quality for all its brands and across all relevant segments. With the brands BMW,MINI and Rolls-Royce Motor Cars, the BMW Group has been focusing on selected premium segments in theinternational automobile market since the year 2000. In the succeeding years, the launch of the BMW 1 Series meantan expansion of the model range in the premium segment of the lower middle class and the BMW 6Series didlikewise in the segment of the large Coupés and Convertibles. The MINI marque was launched and production beganin the Oxford plant in 2001. In2003, the BMW Group assumed marque responsibility for Rolls-Royce Motor Cars.

So therefore it is very important that BMW considers its environment that it operates in before beginning the marketing process. It should feed all aspects of planning.Clearly analyze the external influences affecting the development of the marketing strategy.There are numerous factors that have an effect on BMW¶s business and the consequences of itsoperations, a few of which are beyond the control of the Company. The following information below is an explanation of some of the mainly important factors that may cause the definiteresults of the Company's operations in potential periods to change essentially from those at present expected or most wanted. A PEST analysis will help to identify factors of the externalenvironment which are considered to be opportunities and threats in the market.

What are external macro environments/industry environment

The global car market started decline in 2003, led by market falls in North America and WesternEurope. Other regions of the world led by East Asia are seeing further car market expansion in2003. In 2004, projections for livelier economic growth underpin the resumption of car marketgrowth in Western Europe and North America. Although the more stringent laws can eat away atcompanies' earnings, they also provide the stimulus to develop new technologies and markets.The major external factor affecting the current situation of BMW is that industry structure is becoming more and more concentrated. In this era of auto-industry consolidation, BMW is seenas a medium-sized business which could face problems in the future if it doesn't take intoconsideration strategic alliances. One of the external economic factors is that in the last years alarge degree of overcapacity has been experienced in the car industry running at 20% to 30% inEurope. This overcapacity has been caused by a drop in demand and sales, probably