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    Bayerische Motoren Werken: Eduardo Valero Dina Eldrina Pavan Bagade Lauren Peeters

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    BMW operates in a changing automotive industry facing increased competition from Asian automakers, fluctuations in oil prices, and environmental pressures. The document discusses BMW's strategies to address these challenges through innovation like efficient dynamics and connected drive technologies, expanding into emerging Asian and North American markets, and maintaining strong supplier relationships. It also analyzes BMW's financial and sustainability performance compared to competitors like Daimler and Volkswagen.

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    Bayerische Motoren Werken: Eduardo Valero Dina Eldrina Pavan Bagade Lauren Peeters

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    pavanbagade27
    43 views13 pages
    BMW operates in a changing automotive industry facing increased competition from Asian automakers, fluctuations in oil prices, and environmental pressures. The document discusses BMW's strategies to address these challenges through innovation like efficient dynamics and connected drive technologies, expanding into emerging Asian and North American markets, and maintaining strong supplier relationships. It also analyzes BMW's financial and sustainability performance compared to competitors like Daimler and Volkswagen.

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    BMW operates in a changing automotive industry facing increased competition from Asian automakers, fluctuations in oil prices, and environmental pressures. The document discusses BMW's strategies to address these challenges through innovation like efficient dynamics and connected drive technologies, expanding into emerging Asian and North American markets, and maintaining strong supplier relationships. It also analyzes BMW's financial and sustainability performance compared to competitors like Daimler and Volkswagen.

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    Attribution Non-Commercial (BY-NC)
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    Download as pptx, pdf, or txt
    43 views13 pages

    Bayerische Motoren Werken: Eduardo Valero Dina Eldrina Pavan Bagade Lauren Peeters

    Uploaded by

    pavanbagade27
    BMW operates in a changing automotive industry facing increased competition from Asian automakers, fluctuations in oil prices, and environmental pressures. The document discusses BMW's strategies to address these challenges through innovation like efficient dynamics and connected drive technologies, expanding into emerging Asian and North American markets, and maintaining strong supplier relationships. It also analyzes BMW's financial and sustainability performance compared to competitors like Daimler and Volkswagen.

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    You are on page 1of 13

    Bayerische Motoren Werken

    Eduardo Valero
    Dina Eldrina
    Pavan Bagade
    Lauren Peeters
    Recap Stage 1

    Changes in the industry:


    - Emerging Asian players
    - Oil price fluctuation
    - Collapse of big
    automobile corporations

    BMW Group:
    Future of the industry:
    - Premium market
    - Increase competition of
    Asian players - Innovation focus
    - Environmental pressure - Strong network of
    suppliers
    What does BMW need now?
     Asian market strategy:
    • Opportunities vs. Threats
    • Competition
     Innovation strategy:
    • R&D synergies
    • Technology:
    o Efficient Dynamics
    o Connected Drive
    • Sustainable production
    Innovation Strategy
     Global Research and Innovation  Efficiency Dynamics strategy
    Network • Fuel efficiency
     Conjoint research together with: • Alternative drive concepts
    o Electromobility
    • Suppliers
    o Hydrogen
    • Universities
    • Research institutes  Connected Drive
     Interaction of Development • Active exchange of information
    • Emergency calls
    Centers • NightVision

    BMW Daimler Volkswagen


    Total employees 96.230 256.407 370.000
    R&D employees 9.300 18.800 9.117
    R&D employees (%) 9,6% 7,3% 2,5%
    R&D to Revenue (%) 4,8% 5,3% 2,85%
    Patents filed 13.000 2.000 1.790
    Emerging Markets
     Strategy: “Invest early  Result:
    in emerging markets” • Sales:
    o Asia – 14%
    • Sales subsidiary in o North America – 21%
    Japan in 1981 o Europe – 59%
    • Expansion: sales • Sales increase in Asian
    subsidiaries, markets:
    production facilities o India – 24.4%
    o China - 46.5%
    and purchasing office
    o Indonesia – 25%
    • Joint Ventures with o Vietnam – 106%
    local partners o Brunei – 16%
    Financial Information
    PE ROE Long-term Short-term Outlook
    BMW 36. 5.95% BMW A- A-2 Stable
    6
    Daimler BBB+ A-2 Negative
    Daimler -8.2 1.90%
    Volkswage A- A-2 Negative
    Volkswage 21. 10.32% n
    n 9
    Society
     Laws and Regulation
     Government Foreign Policies
     Environmental Awareness
     Brand Image
     New Technological Development
     Resource Acquisition
     Cost Structure
    Industry
     Creating Brand Image
     Availability Of Information
     Environmental Guidelines
     Entry & Exit Barriers
     Price Sensitivity
     Emergence Of New Suppliers
     Competition
     Cost Effectiveness
     Distribution Network
    Company
     Product Differentiation
     Resource Utilization
     Supply Chain Management
     Buyer Switching Cost
     Bargaining Power (Supplier and Buyer)
     Set Standards (Euro norms)
     Customer preferences
     Performance of Substitutes
    Key Success Factors
    DJSI sector avg BMW Best company (global basis)
    Brand Management
    Talent Attraction & Retention 10 Corporate Governance

    5
    Standards for Suppliers Risk & Crisis Management

    Stakeholder engagement Climate Strategy

    Human Capital Development Low Carbon Strategy


    Source: Dow Jones
    Sustainability Index, 2010
    Operational Eco-efficiency
    VRIO
     BM: Brand Management
     CG: Corporate Governance
    SfS – TAR
    BM – CG – RCM – CS – LCS – OE – HCD – SE – V
     RCM: Risk & Crisis
    Management
     CS: Climate Strategy
     LCS: Low Carbon Strategy
    BM – RCM – OE – HCD – SfS R
     OE: Operation Eco-Efficiency
     HCD: Human Capital
    Development
    SfS
     SE: Stakeholder Engagement
    SfS – OE –
    BM – RCM
    OE –
    I
     SfS: Standards for Suppliers M
     TAR: Talent Attraction & RC
    Retention –
    BM
    O
    SWOT
    Strengths Weaknesses
    - Innovation - Niche market
    - Premium market - High Debt/Equity ratio
    - Brand awareness - Expensive car service
    - Value for money
    - Supplier relations

    Opportunities Threats
    - Expansion in emerging markets - Fuel/raw material prices
    - Strengthen position in the US - Asian automakers growth
    - Innovation alliances - Aging population in DE
    - Supplier relations - FTA EU-South Korea
    - Environmental policies
    Conclusion
    • Environmentally friendly cars
    Industry • Emerging market’s demands
    Prognoses • Expansion of Free Trade blocks

    • Vertical integration of supply chain


    Company • Electric cars
    • Compatibility with Automated Highway
    Prognoses System

    • Keep innovation efforts


    Advises • Alliances with other automakers

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