1. BMW Case Study: Methods Of
Strategic Development,
Competitive Analysis
and
Critical Success Factor
Presented By:
ISMA POKHAREL

2. - The case is written about the strategies followed
by BMW from its beginning to 2007
- BMW is the largest automobile industry all over
the world till today.

3. Factors affecting strategy of
BMW
Factors
General
Particular
Macro
Environment,
industry
Competitors,
markets,
organization

4. Macro environment (general)factors of BMW
- Macro environment factors can be categorises into six main types
as
- In BMW , political, economic and socio-cultural factors seemed to
have great influence on corporation’s strategy.

5. Particular factors of BMW strategy
1. Competitive rivalry
- Cost of switching suppliers was high
2. Substitution
- Customers can substitute their car with holidays,
leisure activities, renewing furniture inside the house
or properties like houses
- In the form of substituting car with vehicles like boats
and motorbikes
- In the form of car alternatives like , instead of BMW
sports car z4, Audi TT or Mercedes CLK

6. Critical Success Factors
 In 2002, New CEO , Helmut Panke adopt new strategy
of internal growth aiming 40% sales increase per year
by achieving sales in class of 1.4 million vehicle to the
next year.
 The strategy pushed in the first place making Mercedes
finally drop in the second place
 Barriers such as labour cost in European economic
made BMW expand its products in U.S where cheaper
labour force could be found.
 Market development strategy:
- existing products were offer in new markets and new
products are offered in various different countries like
Japan, Europe, china , India, Eastern Europe , Asia, UK
, Italy, France
 Long term strategy of innovative development

7. Conclusion
 Corporate strategy is always
significant and essential for success of
company
 Strategy always includes planning,
organizing every detail, making
business plan during future, getting
ready for future changes and catch the
unexpected
 Short term as well as long term
strategy should be drawn