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SWOT and PESTEL evaluation for BMW

Introduction: BMW Gerrick Jackson BMW develops and sells several million vehicles every year, employing roughly 110, 000 people worldwide. The company begun through the Second World War and built it's first automobile in 1928. BMW is the only German automobile producer to show a consistently positive balance sheet over the last 30 years, by concentrating on engineering excellence and delivering consistently popular, in-demand products to a discerning customer basic. BMW Mission declaration BMW's aim is usually to be the most popular and respected company in the UK. Company purpose: BMW (GB) limited and its subsidiaries from a sales and marketing corporation focused on adding value to the products of its parent company BMW AG. Alongside the BMW supplier network, the business seeks to promote brand ideals and customer service.

The genuine BMW and Minuscule brands with the clear profile, distinctive quality, superior Technology, high trustworthiness and determination to the merchandise fully should have their market setting as "The best traveling machine. " The business was started in Germany in 1916 building aero engines and currently has a 97, 275 strong work force operating in America, European countries and Africa. 1. Business environment in the car industry Consolidation in the global car industry moved forward at a breath-taking devote 2001. The six leading communities General Motors, Ford, Toyota, Daimler Chrysler, Volkswagen and Renault accounted for nearly 70% of the worldwide creation of 563 million vehicles in 2001.

Mission of BMW:

"The mission statement up to the entire year 2020 is evidently identified: the BMW Group is the world's leading company of premium products and high quality services for individual mobility. "

(www. bmweducation. co. uk)

Vision of the business:

Company's eyesight is useful dynamics vehicle that preview tomorrow's traveling pleasure using today's technology.

Ref: http://www. bmw. com/com/


Geographical Coverage:

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around 120 UK small companies view >>

around 200 companies from mainland Europe view >>

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around 250 companies from North, Central and South America view >>

SWOT Analysis of BMW:


BMW is really the only German automobile supplier to have shown a constantly positive balance sheet during the last 30 years.

Their business has been spared in all around the world.

Currently has a 97, 275 strong employees operating in America, European countries and Africa.

They have sufficient capital to innovate more for future competition.

BMW have adopted after learning the necessity for defensive as well as aggressive marketing and strategies.

BMW is among the most leading high quality car brand

BMW has learned the manufacturing fine art called mass customization.

Union representatives generally rate BMW a good employer.

BMW is just about the leading prime car brand.


"BMW's main weakness is the fact life gets ever narrower in the high grade segment, and it requires volume progress.

Most of vehicles are costly. Everyone cannot effort money to buy.

Parts aren't available in almost everywhere.

BMW isn't as ruthlessly efficient as Toyota in a few respects, including the number of autos produced per worker each day.


The company is planning to expend the business enterprise more as they have enough capital to do so.

Three new model family members are in the works, including an extravagance sports car.

BMW is extending its creation capacity in Britain.


Toyota's Lexus is beginning to make inroads into BMW's European turf, while at home, rival Audi is arriving the heat, and Mercedes.

Germany continues to be far from being truly a freewheeling economy, which is a fact for the company as well.

Other companies try producing comfortable autos for the customer for chipper price then BMW.

Ref: http://www. time. com/time/magazine/article/0, 9171, 1640398-3, 00. html#ixzz12Xq80Et0

Background Note:

The Munich (Germany) centered Bayerische Motoren Werke AG (BMW) was founded, as an aero-engine developing company in 1917. After World Warfare I, the business faced problems because of the severe restrictions that were placed on the aircraft development business in the country. BMW then made a decision to transfer to the production of motorcycles and traveler cars. The business undertook some acquisitions and joint endeavors with various street bike and car companies. In 1923, the business launched its first motorbike model, BMW R32. In the early 1920s, when the federal government eased the limitations, on the business, BMW once again entered the aeroplanes building business. However, the business continued to give attention to the automobile business. (http://www. icmrindia. org/casestudies/catalogue/Business%20Strategy1/BMW%20Innovation%20Strategies. htm)

In October 2002, the world-renowned auto company from Germany, BMW Group AG (BMW) was awarded the 'Outstanding Corporate Innovator (OCI)' title for 2002, by the Product Development & Management Connection (PDMA).

This technology management system enabled BMW to exploit various path breaking technologies, right from the idea generation stage to the market introduction stage. This system enabled BMW to build up a continuous blast of new products and brands. Company resources accepted that by concentrating on new product development procedures using the creativity approach, BMW successfully withstood competitive stresses and held to its market position. (http://www. icmrindia. org/casestudies/catalogue/Business)

About Marketing Combination:

Price: The price of the car- particularly the price compared to the rivals - is a essential part of marketing. There are two possible rates techniques:

Market skimming - costs high but retailing fewer.

Market penetration - rates lower to secure an increased volume of sales.

Product: BMW is very upgrading about their product, as well as they are concern about their competitors. Targeting the marketplace and making the product appropriate to the marketplace segment you are trying to sell into.

Promotion: This may take the proper execution of point of deal campaign, advertising, sponsorship or other deals. Nearly every month they do promotional offer via advertisement.

Place: This part of the marketing blend is all about how exactly the merchandise is distributed. Current movements are towards shortening the string of syndication.

People: This strains the importance of individuals in the marketing process; usually the first point of contact with any business is a individual - the impressions distributed by this first contact may be very important. Furthermore, the role of human beings in developing customer relations sometimes appears as progressively important especially in an understanding driven current economic climate.

Physical Environment: This refers to the importance to make the physical environment related to the merchandise or service as inviting so that reflective of the business enterprise as possible - for example, look at the showrooms of car traders - many are incredibly well lit, stylish in terms of furniture and decor and include seating areas, espresso making facilities, newspapers and children's play areas.

Process: The process by which the product is either produced or offered to the final user. This may include the prolonged use of ICT facilities to speed up ordering, delivery, etc.

Macro Factors:

There are some issues in Macro factors. Those are






Motives and the action of federal and the way that affects businesses are considered

Government legislation and can impact negatively on businesses

It is really important that group understand the role of the government in the market place be it regulator or a participator

Role of the federal government, regulator or participator

Political ideology


Gross home product

Government polities-fiscal and monetary

Industrial-structure, expansion and distribution

Income-current, expansion and distribution

Wealth- distribution effect on the buying power

Employment- structure, Foot/PT, male/female, regional disparity


Aspect most difficult to understand, product and quality

Because it can deal with real human behavior

Check lists to look for as indicate are culture/sub culture group -X'tics progress, decline

Demographics- socio financial groupings, home possession, geography, family structure, family life routine, and consumption rates etc.

Natural sections- characteristics, differentiation, expansion / decline/change

Psychographics- preferences, benefits, attitude and belief systems

Social pattern- changes personal value system, structure of the society, morals and ethnical positions and perception system.


Information technology in the utilization of computer and computerizations are considered

Effects on the price bottom part of increase IT computerized is also advantageous considering

Checklists to be considered under technical facts

Rate of technology change

Organization able to keep up with customers acceptance

Research and development - cost of investment, control

Production technology - patents, copy rights

Universal availability of technology- rate competition of technological years.

Micro factors:

Customer environment:

All companies have to have a good understanding or their customers: who and why is their market, we can identify five types of market.

Competitor Environment:

Competitor forms a significant part of the environment in which companies operate. Few don't have opponents, and where monopoly have been around government has looked for to drive organizations back to competition market, e. g. in the UK the cola industry, telecommunication, gas and electricity.

With shortening product lives, effective planning must be completed in the light of the competitive situation in which the company detects itself. The competition should be evaluated in several ways, such as:

Direct competition - those companies that produce the same kind of service or product and sell to the same customers.

Industry competition- those companies that operate in the same wide product areas, but do definitely not serve the same market.

Indirect conclusion: companies who make different product or services, but which might attack the source of information or remain competitive for the disposable income of the marketplaces you wish to serve. Good examples of this include the purchase decisions to buy a car or continue holiday, to move house or pay institution fees.

Supplier environment:

This is very much more connected today to quality management and relationship marketing, in which a collaboration is forged with the distributor in the same way as that with the client. Suppliers are essential to the company for it to produce its goods or services. For instance, the Ford Engine Company must obtain material, motors, types, textiles, glass and other components, in order to make cars. In addition, it requires labor, equipment, power, etc. in order to full scale production.

Supplier trends or changes in connections can seriously have an impact on marketing. Developing a close romantic relationship with suppliers can help prevent disruption to production and can make operators much more effective by using such structure as JIT (just-in-time)

The micro environment is closer to the business and involves the makes, people and organizations which operate within the immediate environment of the business. Usually the effects of changes are easier to see and to forecast. That will not automatically make the changes better to offer with, but it does mean that the marketing supervisor can have some desire of influencing some of the micro environment factors.

Company learning resource:

The environment within which marketing management must work requires the resources of the company, and they're not countless. There are always apt to be conflicting opinions about how exactly resources should be use, and one of the managing directors is often to help make the difficult choices between equally deserving departmental managements.

Resources tend to be thought of as they come in the company accounts, in conditions of money- either actual money in the lender or the estimated prices of the properties and equipment that the company owns. These resources are essential, and if the chance occurs to earn some extra profit the business may be able to acquire extra resources. That's what expansion is all about.

Physical learning resource is a very important asset, and the company which has access to adequate resource can take benefit of opportunities whenever come up.

The other kind of tool is, of course, people - of most marks and types, doing demanding or menial careers, which add up to accomplishment of the aims given in the objective statement.

One final source of information is more difficult to identify - the management skill that makes all difference between a successful company and a loser, with obviously equivalent other investments and resources.

Ref: 2. Amanda Shaffer, et. (2007) "Fresh & Easy's Environmental and Food Gain access to Commitments", A Report of the Urban & Environmental Policy Institute, 2007


BMW's business progress is going more and more. Their business strategies and their tactics is the key key of their success. At the top of that the company's internal customers are incredibly satisfied with the business. This is very important for each business to being their business in success.

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