Strategic Analysis Of Bmw

1659 words - 7 pages

Strategic Analysis AssignmentBMW AutomobilesSubmitted by:80061516On:28 November 2003Brief introduction to the automobile industry in 2003In 2003, International automobile markets reflected varying economic conditions.The performance of a number of European markets fell short of expectations. In Germany in particular, the on-going political debate created a mood of uncertainty for consumers, with a consequent negative impact on demand.The global car market is facing decline in 2003, led by market falls in North America and Western Europe. However, other regions of the world - led by East Asia - are seeing further car market expansion this year. In 2004, projections for livelier economic growth underpin the resumption of car market growth in Western Europe and North America. However, the trend towards an increasing share of global car demand being accounted for by emerging markets will continue.The decline is brought about by lower car demand in North America and Western Europe, both relatively mature car markets that have been adversely impacted this year by high energy prices and fragile consumer sentiment .The automobile industry is becoming more and more competitive, with 6 major Groups which have been formed in the last 3 years. From the table below, we can see who these major Groups where in 2000 and what they where aiming for.Source: PriceWaterhouseCoopersThese are the Groups with which BMW will have to compete in the years to come and form a particular threat because of their dimensions.Strategic Analysis for BMWStrategy defined:"Strategy is a perceived pattern in actions past or yet to come. It is a label applied to patterns in action"How do we evaluate a strategy?"Strategy evaluation requires a consideration of both current and likely future results against the resources committed to the strategy"This is only an overview of the major concerns and findings from the various analysis carried out. These can be found in the Appendices at the end of the assignment.Key Environmental InfluencesLike any modern industry, car manufacturing today is strongly affected by external social and environmental pressures, which influence both current production practices and the development of future products and technologies. Environmental standards are mostly set by government regulation and even associations within the automobile industry. The main law regulating fuel quality standards is the federal Clean Air Act (CAA), passed in 1973, with added amendments in 1990 (CAAA). These acts aim to protect public health and the environment from harmful gaseous and particulate emissions from motor vehicles and engines. As anti-emission laws get stricter every year, and companies look to double or triple their fuel efficiency, alternative technologies are being developed to replace the traditional gasoline engines, and have started to hit the market.Increased fuel-economy and decreasing vehicle weight are gradual changes that slowly improve automobile performance,...

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