Business Policy & Strategy

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Business Policy Strategy [ ?] br

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language Case is the one of BMW , which I have already given you , and the questions to it are

1 . Using Porters five-forces framework , analyze the competitive environment in the automobile industry , concerning the BMW case

2 . What were the critical success factors in the market segments in which

BMW

competed ? Discuss BMWs sources of competitive advantage The Strategy followed and the competitive forces affecting the automobile industry : The success of BMW was not

an accident but a combined effort where in lots of discussions went into identifying which markets to enter , how should be the positioning of the products , the way a close touch has to be maintained with the suppliers , dealers and the manufacturers . This is a sequence of related and necessary events which needs to be implemented and this creates a drive to maintain a relationship and liaison between the firm and the environment . Smart environmental awareness and reliability create an emotional quotient which creates and conveys an image of the ultimate driving machine that sets a model for general perceptions and the emotional associations related to the brand . There were three major issues which concerned the competitive strategies set by BMW that have been discussed below . The environmental issues which are addressed are with regards to the volume and the level of output planned by the organization which is required to create a niche for the purpose of brand identity that needs to be done profitable and handled globally . Secondly the production aspect also requires some concern depending upon the high margins which are provided to the manufacturers , dealers and the suppliers . The premium price levels interested BMW to create a niche in generating higher profitable levels which helped new entrants clearing a way into the organization structure thus generating a competitive scenario by making the products price competitive . The final concern was that of quality which deals with the basic aspects and the issues of costs the concern for risk factors are bound to rise

Success Story of BMW - Taking Porter 's Five Forces Model into consideration it is essential to understand the business strategy that helps in analyzing the customer needs and the wants . Speaking about the automobile industry which BMW is competitive in , it is evident that BMW is the largest company of Germany which is successful in its arena of car segment . This model is known for its quality and the technological nature of the products which are proven for innovation and the model styling which is said to be traditional in consideration to the design of the cars which is presumed to be conventional in nature . BMW is also known to be strong in maintaining skilled labor force from Germany and hence the success factor of BMW is built over two important factors . The company generates and intends building up its quality based on the engineering aspect in the car production section while most of the car...