BMW is the world’s leading manufacturer of premium automobiles and motorcycles, and provider of premium financial and mobility services having 30 production locations in 14 countries. As per the data of 2017, the company has 129,932 employees out of which 117,664 are in automobile segments, 3,506 are in motorcycle segment and remaining 8,645 are in financial services segment. The company collected the revenue of over 98 billion euros by delivery of 103,080 electrified vehicles, 2,463,526 automobiles and 169,153 motorcycles (BMW, 2018)
In order to maintain the unique position in the market, BMW is using differentiation strategy to attain the stated objectives by overcoming the physical, mental and financial constraints of organization using minimum possible resources. It is continuously developing new ways to compete and sustain in the market by making adjustments of unexpected moves from competitors, shifts in the needs and preferences of buyers, emerging market opportunities and new ideas for performance improvement in its strategy (Gamble, Peteraf, & Thompson, 2015).
By looking at the company website, we can see that The BMW Group is setting trends in production technology and sustainability as an innovation leader with an intelligent material mix, technological shift towards digitalization and resource-efficient production. The flexible value chains that can be optimized continuously adds to the competitiveness of the organization.
The strategic approach of BMW comprises of brand and image, products, technologies, customer experience and services, digitization and profitability aims on expanding technological competence and set new standards for competitors by enhancing interaction between individuals, vehicles and services (BMW Strategies). The robots and automated technology are used in optimum level to support the people in coming up with flexible, efficient and innovative products. BMW is the first automobile company to use lightweight carbon in large series production that supports electro mobility and offsets the additional weights of battery. In addition, the use of one-of-a-kind environment management system for intelligent data energy management is assisting in sustainable production (BMW Production).
It has separate institute for mobility research that initiates cross-modal and interdisciplinary research with an international perspective in the domain of mobility and transport. The researches focus on future scenario and vision, urban mobility, automated driving, new business models and user demographics that helps to come up with new strategies to address the market demand (BMW Research Institution). It also allows customers to design their own product by choosing from different models available to add emotional element to the product. It also invests in employee support and development to make them motivated for working towards the business goal by making it a special place to work.
BMW has developed the vision for next hundred years based on the six statements of mobility is becoming versatility, connectivity is becoming second nature, mobility is becoming tailor-made, technology is becoming human, energy is becoming emission-free and responsibility is becoming diverse (BMW Future Views). Production of electric vehicle is one of the move of the company to think of the future and address the changing need of people and environmental issues together.
Thus, we can say that BMW is using its resources, capabilities and activities in full potential to differentiate itself from the competitors.
Gamble, J. E., Peteraf, M. A., & Thompson, A. A. (2015). Essentials of Strategic Management: The Quest for Competitive Advantage (Fourth ed.). New York: McGraw Hill Education.
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BMW is the world’s leading manufacturer of premium automobiles and motorcycles, and provider of premium financial and mobility services having 30 production locations in 14 countries. As per the data of 2017, the company has 129,932 employees out of which 117,664 are in automobile segments, 3,506 are in motorcycle segment and remaining 8,645 are in financial services segment. The company collected the revenue of over 98 billion euros by delivery of 103,080 electrified vehicles, 2,463,526 automobiles and 169,153 motorcycles (BMW, 2018)
In order to maintain the unique position in the market, BMW is using differentiation strategy to attain the stated objectives by overcoming the physical, mental and financial constraints of organization using minimum possible resources. It is continuously developing new ways to compete and sustain in the market by making adjustments of unexpected moves from competitors, shifts in the needs and preferences of buyers, emerging market opportunities and new ideas for performance improvement in its strategy (Gamble, Peteraf, & Thompson, 2015).
By looking at the company website, we can see that The BMW Group is setting trends in production technology and sustainability as an innovation leader with an intelligent material mix, technological shift towards digitalization and resource-efficient production. The flexible value chains that can be optimized continuously adds to the competitiveness of the organization.
The strategic approach of BMW comprises of brand and image, products, technologies, customer experience and services, digitization and profitability aims on expanding technological competence and set new standards for competitors by enhancing interaction between individuals, vehicles and services (BMW Strategies). The robots and automated technology are used in optimum level to support the people in coming up with flexible, efficient and innovative products. BMW is the first automobile company to use lightweight carbon in large series production that supports electro mobility and offsets the additional weights of battery. In addition, the use of one-of-a-kind environment management system for intelligent data energy management is assisting in sustainable production (BMW Production).
It has separate institute for mobility research that initiates cross-modal and interdisciplinary research with an international perspective in the domain of mobility and transport. The researches focus on future scenario and vision, urban mobility, automated driving, new business models and user demographics that helps to come up with new strategies to address the market demand (BMW Research Institution). It also allows customers to design their own product by choosing from different models available to add emotional element to the product. It also invests in employee support and development to make them motivated for working towards the business goal by making it a special place to work.
BMW has developed the vision for next hundred years based on the six statements of mobility is becoming versatility, connectivity is becoming second nature, mobility is becoming tailor-made, technology is becoming human, energy is becoming emission-free and responsibility is becoming diverse (BMW Future Views). Production of electric vehicle is one of the move of the company to think of the future and address the changing need of people and environmental issues together.
Thus, we can say that BMW is using its resources, capabilities and activities in full potential to differentiate itself from the competitors.
References
BMW. (2018). BMW Group Key Figures (2017). Retrieved from Company: bmwgroup.com/en/company.html 2
BMW Future Views. (n.d.). Retrieved from bmwgroup.com/en/next100/futureview...
BMW Production. (n.d.). Retrieved from bmwgroup.com/en/company/production...
BMW Research Institution. (n.d.). Retrieved from bmwgroup.com/en/company/forschungs...
BMW Strategies. (n.d.). Company. Retrieved from bmwgroup.com/en/company/strategie.... 5
Gamble, J. E., Peteraf, M. A., & Thompson, A. A. (2015). Essentials of Strategic Management: The Quest for Competitive Advantage (Fourth ed.). New York: McGraw Hill Education.