In this cut throat business market, products and services competing and catering to various market segment competing for market customers, needs to hold innovative product differential strategy for business growth and sustainability. Diverse buyer preferences allow industry rivals to set themselves apart with product attributes that appeal to particular buyers (Gamble, Peteraf, & Thompson Jr., 2013).
Analysing BMW’s website, the first website boasted of 17 different varieties of vehicles design with multiple sub designed under each one. Their different functionality were mentioned as SAVs, Sedans, Coupes and Convertibles. Their innovation segment has electric category where they have plans to expand their electric automotive varieties to 25 different electric models by the year 2025. At present, 2018, they have plans to expand their 9 electric powered models. Also their future plan of launching iNext the first series of electric powered autonomous driving.
In 2017 they claimed to have delivered 100,000 to customers in Europe with electric vehicles and has a forecast for further 140,000 units in 2018 and over half million electrified vehicles to customers in the next decade. Their plan on joint venture with Chinese corporations, Great Wall Motor to produce MINI’s in China along side production at Oxford to be initiated in 2019. This shows its commitment to expand into the market of electric vehicles (BMW Group, 2018).
BMW is also personalizing new designs and user experience. With BMW Intelligent Personal Assistant, the new technology helps the owner figure out how to manoeuvre between vehicle settings or changes in oil etc. With voice activation it gives a sense of personal preference and user friendly experience as well safety issues.
Safety has been taken by BMW seriously and has included the M differential lock system that locks the gears when two outer wheels are prone to stress and slipping (Gibb, 2000). This system also differentiates it from its counterpart to cater to the market segment that not only prefers sporty cars with power and elegance but also considers safety as a priority.
Another step by BMW is to get into the online market and direct CRM strategy. For this it has chosen Accenture as its partner to look into their online presence and marketing. Accenture expertise in digital marketing and strategic presence in all of BMW located countries has been a plus point. Also Accenture’s research among 13,000 drivers in 11 countries have shown that has showed 80% want intuitive and customized content. 77% also want simpler ways to configure vehicles. The respondents also preferred simpler and easier car processing. This research has highlighted how there is need of digital marketing in automotive industry (M2 Presswire, 2013).
These are some of the differential strategy that BMW has been implementing or has plans to implement to differentiate itself into the market segments. With so much of competition from Tesla, GM, Ford, VW etc. it no wonder BMW needs these differential strategies to remain on top of the game.
Gamble, J. E., Peteraf, M. A., & Thompson Jr., A. A. (2013). Essentials of Strategic Management. New York: McGraw Hill Education.
Gibb, W. (2000, July 5). TOP MARQUES; BMW’s M is fast, slick … and safe: . Daily Record; Glasgow , p. 34.
M2 Presswire. (2013, May 6). Accenture to Manage Rollout of Leading Global Carmaker’s New Web Platform and Online Marketing Campaigns. M2 Presswire; Coventry .
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In this cut throat business market, products and services competing and catering to various market segment competing for market customers, needs to hold innovative product differential strategy for business growth and sustainability. Diverse buyer preferences allow industry rivals to set themselves apart with product attributes that appeal to particular buyers (Gamble, Peteraf, & Thompson Jr., 2013).
Analysing BMW’s website, the first website boasted of 17 different varieties of vehicles design with multiple sub designed under each one. Their different functionality were mentioned as SAVs, Sedans, Coupes and Convertibles. Their innovation segment has electric category where they have plans to expand their electric automotive varieties to 25 different electric models by the year 2025. At present, 2018, they have plans to expand their 9 electric powered models. Also their future plan of launching iNext the first series of electric powered autonomous driving.
In 2017 they claimed to have delivered 100,000 to customers in Europe with electric vehicles and has a forecast for further 140,000 units in 2018 and over half million electrified vehicles to customers in the next decade. Their plan on joint venture with Chinese corporations, Great Wall Motor to produce MINI’s in China along side production at Oxford to be initiated in 2019. This shows its commitment to expand into the market of electric vehicles (BMW Group, 2018).
BMW is also personalizing new designs and user experience. With BMW Intelligent Personal Assistant, the new technology helps the owner figure out how to manoeuvre between vehicle settings or changes in oil etc. With voice activation it gives a sense of personal preference and user friendly experience as well safety issues.
Safety has been taken by BMW seriously and has included the M differential lock system that locks the gears when two outer wheels are prone to stress and slipping (Gibb, 2000). This system also differentiates it from its counterpart to cater to the market segment that not only prefers sporty cars with power and elegance but also considers safety as a priority.
Another step by BMW is to get into the online market and direct CRM strategy. For this it has chosen Accenture as its partner to look into their online presence and marketing. Accenture expertise in digital marketing and strategic presence in all of BMW located countries has been a plus point. Also Accenture’s research among 13,000 drivers in 11 countries have shown that has showed 80% want intuitive and customized content. 77% also want simpler ways to configure vehicles. The respondents also preferred simpler and easier car processing. This research has highlighted how there is need of digital marketing in automotive industry (M2 Presswire, 2013).
These are some of the differential strategy that BMW has been implementing or has plans to implement to differentiate itself into the market segments. With so much of competition from Tesla, GM, Ford, VW etc. it no wonder BMW needs these differential strategies to remain on top of the game.
References
BMW Group. (2018, September 28). READY TO FACE THE FUTURE. UK. Retrieved from bmwgroup.com/en/company/strategie....
Gamble, J. E., Peteraf, M. A., & Thompson Jr., A. A. (2013). Essentials of Strategic Management. New York: McGraw Hill Education.
Gibb, W. (2000, July 5). TOP MARQUES; BMW’s M is fast, slick … and safe: . Daily Record; Glasgow , p. 34.
M2 Presswire. (2013, May 6). Accenture to Manage Rollout of Leading Global Carmaker’s New Web Platform and Online Marketing Campaigns. M2 Presswire; Coventry .