The ultimate driving experience.

1. The Ultimate
Driving Experience.
Presented by: Arbër Hoxhallari

2. History
1916 - Establishment of BMW.
1941 - BMW in World War II.
1951 - The BMW 501. The first post-
war BMW automobile.
1969 - Motorcycles production.
1973 - The BMW headquarters and
the Museum.
1973 - Worldwide creation of sales
subsidiaries.
1994 - BMW goes to the USA.
1998 - Rolls-Royce comes to BMW.
2007 - Opening of BMW Welt.
2007 - Takeover of the Husqvarna
brand.
2007 - Strategy Number ONE.

3. Mission Statement
• The BMW Group is the world’s leading
provider of premium products and
premium services for individual mobility.
• BMW Brand - "The BMW brand stands for
one thing: sheer driving pleasure. Sporting
and dynamic performance combined with
superb design and exclusive quality."
• MINI Brand - "The MINI brand wins hearts
and turns heads. MINI is refreshingly
different: extroverted, spontaneous and in
every respect something out of the
ordinary."
• Rolls-Royce Brand - "For over 100 years,
motor cars of the Rolls-Royce brand have
stood for truly outstanding engineering,
quality and reliability."

4. Vision
Three brands, one vision - to
become even better.
Thanks to our uncompromising
focus on premium, BMW Group
automobiles and motorcycles
inspire more people around the
world today than ever before.

5. Values
 SUSTAINABILITY MANAGEMENT - Sustainable
operations enable us to leverage new opportunities, minimize
risks and overcome social and business challenges.
 PRODUCT RESPONSIBILITY - For us, product
responsibility begins at the vehicle development stage and
continues throughout the value chain, with customer support
provided until long after the utilization phase.
 GROUP-WIDE ENVIRONMENTAL PROTECTION - We
aim to be the most resource-efficient carmaker in the world.
 SUPPLY CHAIN MANAGEMENT - We aim to work with
our suppliers to firmly establish sustainability throughout our
supplier network.
 EMPLOYEES - Attractive jobs, diversity, equal
opportunities and the well-being of our employees are of the
utmost importance to us.
 CORPORATE CITIZENSHIP - We place the focus of our
Corporate Citizenship activities on those areas in which we
can apply our core expertise to achieve specific and
measureable improvements.

6. Goals
 Implementation of its
successful Strategy Number
ONE.
 Launching its innovative
BMW i3 and BMW i8.
 Around 2000 new hires in
2013.
 Building the most reliable
vehicles.
 Over 1.5 million vehicles
sold every year.

7. Strategic Capabilities
• Brand reputation.
• Technology.
• Worldwide presence.
• Skilled workforce.
• Huge budget for R&D.

8. Comparison
BMV
•Founded in Munich in 1913
•1,380,384 cars sold in 2011
•105,867 employees in 2012
•Revenue 76,8 b € in 2012
Audi
•Founded in Zwickau in 1909
•1,455,000 cars sold in 2012
•60,000 employees worldwide
•Revenue 48,8 b € in 2012

9. Comparison
BMV
•Founded in Munich in 1913
•1,380,384 cars sold in 2011
•105,867 employees in 2012
•Revenue 76,8 b € in 2012
Lexus
•Founded in 1989
•467,566 cars sold in 2012
•Revenue 16,6 b € in 2012
•division of Toyota Motor
Corp.

10. SWOT Analysis
Strengths
Brand image
Quality products
High employee productivity
Motorcycle as a niche product
Innovation
Weaknesses
Poor performance in Asian markets
High cost structure
Less strategic alliances
Male dominated
High maintenance cost

11. SWOT Analysis
Opportunities
Growth in Asian markets
Rising Green awareness
Increasing fuel prices
Expand brand portfolio
Threats
High competition
Currency risk
Green awareness
Environmental protection regulations
Change in oil prices
Recession in EU countries

12. TOWS Matrix
O T
S
•Focus on BRIC Countries using
its strong brand image
•Considering green awareness to
invest in hybrid and electric cars
•New innovations to match EU
vehicle regulations
•Strong brand image helps BMW to
overcome recession
W
•Build new production facilities in
Asia to lower wages
•Expand brand portfolio to attract
young people and women
•High competition in Asian countries
•Recession can decrease sales of
BMW expensive cars

13. Porter’s 5 Forces
• Threats of new entrants: Low
The threat of new entrants in case of automobile
industry is low because a very large capital is
required to build a manufacturing plant. Also it
takes a long time for new entrants to get a
reputation and become a strong competitor.

14. Porter’s 5 Forces
• Threats of substitutes: High
BMW has the image of a powerful and luxurious
car and is positioned in the same range where
exist many substitutes for it like Audi, Mercedes,
Lexus, Porsche etc.

15. Porter’s 5 Forces
• Bargaining power of buyers: High
Here the bargaining power of buyers is high
because the consumers can decide which
product to choose considering the price and
environmental issues.

16. Porter’s 5 Forces
• Bargaining power of suppliers: Medium
The bargaining power of suppliers is high in this
industry as the suppliers can dedicate the price
for the raw materials, but also a long term
collaboration creates a trustful and stable
environment between them.

17. Porter’s 5 Forces
• Competitive rivalry: High
Competitive rivalry is high in this industry. The
dominant US and European companies are also
facing firm competition from the Asian
companies in the same markets.

18. Pestel
• Political
• Environmental regulations.
• Taxes and government’s foreign policies.
• Economical
• Recession in EU and many other countries
• Decrease in the exchange rate if euro.
• Economic downturn in the US market.
• Buying power in the developing economies like India and China.
• Social
• Changes in the customer preferences to fuel efficiency cars.
• Changes in buying pattern of the consumers due to recession.
• Environmental issues.

19. Pestel
• Technological
• Increase in use of technology to gain a competitive advantage.
• Use of innovative design
• Modifications on technology to protect environmental pollution
• Environmental factors
• Increasing awareness on global warning.
• Shift in consumer’s preferences towards use of eco-friendly cars.
• Legal factors
• Restrictions and pollution norms set up in EU and US.
• Regulations for imported cars in some countries.

20. Key Drivers of Change
From the PESTEL analysis and the Porter’s 5 forces,
the key drivers of change are:
• Consumer preferences.
• Use of design as a great asset.
• Technological advancements.
• Environmental issues.
• Brand management.

21. THANK YOU !
Questions?