Problems Facing Bmw Company Marketing Essay

Problems Facing Bmw Company Marketing Essay Globalization diversifies markets for vehicle manufactures where regions like Japan, North America and Western Europe are established big manufactures with over 18 vehicle manufactures across the board. This accounts for almost 90 percent of vehicle produced thus a scramble for available markets, attention now turns to upcoming economies like Russia, Latin America and Eastern Europe, Governments in developing economies aware of the value of their prospective growth auction off their market share to the highest bidders, like BMW, this investors hoping to increase manufacturing capacities so as to build their intended market bid away their economic returns and in so doing multiply the overcapacity problem on a large scale (Griffin Pustay 2009). Risks involved in venturing into new markets weigh in and most companies aware of the consequences of losing a market place bid, this either plays out in the company over bidding or throwing in the towel and losing the market.   Differentiation Successful ECO-Specialties must emphasize their differentiation. Differentiation means that the marketing mix is distinct from and better than what is available from the competitor; product differentiation is the core to a healthy market share. An abundance of option for the vehicle buyers exists with vehicle models with almost similar functional characteristics, BMW is now forced to manufacture unique products for a particular region at a point in time, and this is to cope with tastes and fickle needs of consumers. This differentiation wanes on their budget heavily since financial consequences of missing a market are disastrous (Prahalad Hamel 1990). Innovation Commitment to innovation and product variety has brought on the greatest challenge in the companies history, the intricacy and complexity of the functions offered in BMWs premium luxurious cars has burgeoned making manufacturing costs increase. Product development is the most financially taxing for BMW, the cost of developing a new models and model parts is enormous, time consuming and carries major risks. where the ford and general motors GM experience of 1970s and 1980s implies that commonization among manufactures leads to consumer backlash and confusion, BMW is now faced with expensive process of innovating prototypes and going through rigorous expensive and risk prone testing phases (Hollensen 2007). Competition Competition from other vehicle manufacturers dictate company strategies, with 69% of the market controlled by six companies its more difficult for a manufacturer to maintain his buyers without raids from rivals, this has the most direct effect on prices. Slow growth in automobile industry intensifies competition and has affected the BMW strategy leading to the BMW brand acquiring the merger partners (Tata Motors Inc. 2009). Substitute Products Substitute products threat on the auto market relates to products, materials or resources that may cause the demand for a product to shift. BMW targets premium buyers with whom quality matters, however other manufactures targeting this premium car market like, Mercedes, Audi, and the Porsche consequently become a close substitute to BMW. Global Warming With Global Warming a great concern in the modern world, environmental activists, non governmental organizations and governments are pushing for manufacturing companies to go green, BMW The carmaker, whose stable includes its core BMW brand along with the compact Mini and the super luxury Rolls-Royce, which hopes to deliver over 1.8 million vehicles a year by 2012 is faced with stricter regulation to conform, the company warned it is also likely to be confronted in the future by stricter emission standards in many countries. This implies further costs in innovation of more environmentally friendly engines, fuels and investment into alternative sources of energy to drive their cars. Proposed Solutions On globalization BMW can solve this over taxing problem through carefully calculated mergers and acquisitions, this allow the company to gain market share and penetration as well as access to already existing technology, local professionals and local brands. Furthermore, reviewing policies to improve the ratio of profitable to unprofitable customers which tends to run 20:80. Developing a global view of the brand and the buyers portfolio will reveal uncharted regions for expansion. And the use of existing plants in suitable locations to manufacture or assemble vehicles maintaining the quality of the BMW brand will greatly cut operational start up costs. Differentiation BMW has adopted advanced technology used to increase engineering and the quality of the models which are the route to competitive advantage. Mainly the major areas of differentiation are in alternative energies and security features, ensuring the brand maintains uniqueness, the BMWs 2002 (sports sedans) ensured differentiation was achieved, BMW use of advanced electronics make their cars luxurious as well as sporty to drive Innovation and product variety The use of technologically announced Intel Xeon processor 5500 series helps BMW Group to balance hardware, energy and application licensing costs, while also increasing its performance. This allows for new applications to be run, prototypes can be virtually created and tested virtually, Dr. Burkhard Goeschel, member of BMW board explains key areas of innovation incorporated in product development, this key areas include, Connected Drive which allows for an innovative and comprehensive concept networking the car, the driver, and the surrounding world, by-wire technology and iDrive control, all these concepts are available in the new BMW 7 series. Competition BMW has introduced new models, the x5, x3 and z4 with advanced electronics to make them sporty as well as luxurious, BMW has also acquired the Mini Cooper and Rolls Royce car manufacturers and the new models have boosted their competitive edge. Substitute products BMW prioritizes quality and product differentiation such that for its targeted premium market the BMW standards remain top and the car is still prestigious. Environmental challenges To combat this BMW along with other motor companies have tried to use some of the emerging technologies to make money, lower costs and ultimately help in reducing pollution. Toyota, Ford and BMW have incorporated this mentality in manufacturing of three lines of their cars, the new BMW 7series and the greatly awaited z4 are all projected to embrace these environmental friendly features, in future innovation of electric cars and alternative fuel sources are being considered. Major Strategic Alternatives BMW has established a basic supply chain in order to improve its load planning, this aids in determining its allocation strategies to cope with globalization; this supply chain ensures putting up of new manufacturing plants in suitable foreign countries and dedicated assembly lines for every product with few variants and thus increases productivity and reduces costs. With the market full of options for the buyer, the chain allows BMW to establish its brand in emerging anomies before competitors bid for market shares. Mergers and acquisitions of key brands of premium brands of cars have further solidified BMW market dominance. Beginning with the BMW Rover merger, the company has newly acquired MINI, and Rolls Royce cars. Its products cover the full range of size classes and car types but consist exclusively of premium-class cars, this allows the company to venture into new markets use the facilities used by former brands to re model new cars thus reducing operational costs while fostering growth. Unlike former mergers like the vole-Renault deal of the early 1990s which collapsed because the company cultures were incompatible, BMW integration with their new acquisitions have proved profitable, most vehicle manufactures have resulted to creating entirely new vehicle segments, and BMW hit home run with its 2002 sports sedan which generated returns to its innovator by fending its differentiated position, the company has designed and always built cars with exponentially greater responsiveness to a dri vers actions, this has been greatly attributed to the companies product differentiation policies (Teece et al 1996). The BMW engine roaring sound is music to the ears of sports and performance car lovers, outside the box thinking like the BMW sedans and convertibles give BMW a competitive advantage over other manufacturers. New and advanced technology like greatly improved safety features, advanced control features have led to market dominance. BMW cars typically have product life cycle of seven years. and according to Jim McDowell, vice president of marketing at BMW If a product is declining, we would prefer to withdraw it from the market, as opposed to having a strategy for dealing with the declining product this awareness ensures that BMW ventures are only profitable ones, the rover case shows how failing mergers operate and instead of working on it BMW sold it to UK venture capital firm Alchemy Partners (Siciliano Zuvich 2006). To foster growth BMW instead acquired profitable mergers like with luxury cars rolls Royce. This ensures the company always remains relevant to the market and trendy to its buyers With advancing technology and introduction of fiber optic cables in developing economies, the world has become a global village where car enthusiast can order in their premium BMW cars online, check features and ask questions on performance, : BMW Car maker uses web mostly to drive its brand, taking the phrase beyond the banner seriously, online adds like the Marketing Channels Internet 46860 banners, appear on equal rotating basis with each search result, with BMW targeting 26.5% the percentage of viewers between age group (25-34) , this along with E-mail Marketing, Brochure test-drive Registration for Mail alert message, and e-catalogue, enable more availability of information anywhere to prospective buyers, BMW has launched an email marketing campaign for the release of the long awaited Sporty new Z4 Convertible, Z4 BMW (Key General Motors Financial 2007). This guarantees availability to buyers who dont have to attend gallery shows at the dealership. BMW has established Numerous Overseas Subsidiaries in countries like, south Africa, India, china Canada and Egypt, where BMW vehicles are assembled, 2003 saw the signing of a deal the production of sedans in China, this subsidiary firms are well equipped to build cars for export to specific markets like, the south Africa plant builds left hand drives for the Taiwan market, and also right hand drives for sub Saharan Africa, Malaysia and Singapore. This shows a great understanding of the market and understanding of the buyer needs in different regions, Predictions If put in place supply chains will enable the company to greatly take advantage of existing infrastructure in different regions, this will allow for strategic allocation of plants in areas where the BMW brand will not be compromised, this areas will preferably have skilled professional workers, laid out infrastructure which the company will exploit. This aids in reduction of start up costs in new markets. Integration with already existing local brands allow for easy market penetration (Franey 2008). E-commerce is a must have for companies in the modern world and will increased emphasis on e marketing, BMW stands to break into markets far and wide, most upcoming economies have low income citizens without many premium luxurious cars available, the internet brings the BMW experience closer to them, thus when the market is established the concept of luxury cars wont be so alien, this allows for easier market penetration and preparation of a ready market (Juslin Hansen 2003). Product differentiation among premium car market is a key to successes, with the targeted buyer giving more emphasis to quality and uniqueness and elegance as opposed to pricing, BMW seeks to offer intricate designs and features to these new models allowing for elegance that buyers crave. In reaction to the differentiation major competitors like Volkswagen, Porsche, Mercedes, have released new models like the jeep Cherokee luxurious SUV, and the mustang pony cars so as to try and keep up. Establishing of overseas subsidiary in developing markets in the Latin America, and parts of eastern Europe, and Africa BMW will be able to put up assembly plants closer to the buyer, sales are predicted to sore with introduction of this new markets, the subsidiary firm are able to carry out research in respective Regions and integrate the outcome in their strategic plans to give the buyers exactly what they desire, this bolsters sales, Strategy outcome Prediction When implementing E- Marketing as a basis for extending growth and penetration to market regions, various risks are involved especially when the internet is being used to launch details of new vehicle series being manufactured, BMW had a case in 2004 when there were cases of website incursions, theft of vehicles and a constant threat of arson even in its UK head offices in Bracknel (Hambrick Fredrickson 2001). In addressing all these, the company specified a self-sufficient security solution that was cost effective and that required minimal human supervision and intervention. Reliance securities implemented a state of the art security solution including CCTV surveillance with intelligent detector activation, to avoid future incursions. Mergers and acquisitions are effective in breaking into new markets through acquiring and integrating an already existing brands, great risks are involved in such takeovers, having seen the BMW-Rover merger record massive losses, in light of this failure BMW has learnt to plan its mergers with companies whose cultures are compatible, this has seen successful mergers with luxurious car manufactures rolls Royce and the mini (Pearce Robinson 2009). Production of entirely new brands is the most expensive aspect of car manufacturing with average of 2 models released in a decade, across the wide range of car manufactures, though this allows for product differentiation and preferences to the buyer, great risks are involved, since the sports sedan in 2002, only the 2seater roadster and coupe have been sold since 2002 (Marshall Stuart 2008). The company has however heavily invested in technology when intricate applications are put in place to virtually make desired prototypes, and virtually test the models this greatly reduces costs of manufacturing a car and having it fail.   Many countries have enacted stricter environmental restrictions on pollution and emissions, BMW, has greatly put in place measures to manufacture more fuel efficient cars, this comes with elevated costs and consequently the cost is projected down to the buyers, more fuel efficient engines are expensive, electric cars which are regarded as the future are even more costly even to premium market target manufacturers, The 2011 BMW Active Hybrid 7 and the vision Efficient Dynamic Concept car which was unveiled during the September 2009 Frankfurt Auto Show are projected to offer fuel economy of 62.6 mpg. BMW also has a recycling policy where they use the shredded parts of the cars in their yard, this reduces pollution, and the foundation for the environmental friendly recycling of vehicles is laid during the production of each vehicle (Bayerische Motoren Werke Aktiengesellschaft 2008).    Supply chains overall levels of integration ensuring a reduction to fixed costs of assets and labor, they also serve to reduce the number competitors supplying into the same market, for instance India is a viable market but has competitors such as, Audi, Daimler Chrysler, Tata, Mahindra an Hyundai looking to invest in that market by putting up assembly units, the supply will ensure such a flooded market is avoided or a more appropriate means of entry is effected (Thompson Strickland 1996). Globalization leads to governments of up coming economies take advantage of their growth potential and thus bid off their markets to the highest bidders amongst the major vehicle manufactures. But there is growing unwillingness within the supply community to invest in plants that might not reach potential in over a decade, this leads to investors pulling out instead of bidding away, this markets form good grounds for take over and acquisitions of already in place plants (Kiley 2004).

Drivers of Sustainable Supply Chain Management Essay

Drivers of Sustainable Supply Chain Management Introduction                   Sustainability in all operations of a business is a contemporary issue that ensures firms gain competitive advantage. Supply chain management is a discipline dealing with the reorganization of a firm’s extra-supply activities to achieve a competitive edge in the market and take advantage of customer value. It is also concerned with the suppliers attempt to establish and effect supply chains which are both efficient and economical for them. An organization’s supply chain is a multidimensional activity covering most aspects ranging from manufacturing, to goods and services development, and the information systems.The drivers of a sustainable supply chain management can be either internal or external. Internal sustainability drivers include internal business processes while the external are legislation, environmental drivers, customers, and social drivers (Hanuv 35).                   Legal requirements compliance is a fundamental drive in achieving a sustainable supply chain management. It is the starting point because failure to comply to regulations implies that the business is illegal (Cohen 80). Regulatory issues include general environmental laws that may give direction to products disposal and recycling. Compliance to the law enhances the supply chain and hence making it sustainable.                   Financial drivers are also vital for a sustainable supply chain management. Sustainable supply chain management leads to efficiency and effectiveness in business operations that result to good financial performance. This is brought by reversed logistics that result to cost minimization and saving.                   Sustainability is also driven by internal business processes such as offering warrants, product leases, and replacements. These activities enhance effectiveness in production to minimize replacements and hence in the long run a business attains a sustainable supply chain.                   Customers are the most important stakeholders to any business and they greatly drive firms into adopting sustainable supply chain management (Hugos 56). The clients have large number of substitute goods at their disposal, which gives them the driving force to impact the operations a firm. As firms work to accumulate customer’s pressure such as buying from companies with green image, they end up attaining sustainable supply chain management. References Cohen, Shoshanah. â€Å"Contemporary Supply Chain Management.† Strategic Supply Chain Management: The Five Disciplines for Top Performance:2nd Revised Edition. New York: Mcgraw-hill Professional, 2013. 80-132. Print. Hanuv, Mann. Drivers of Sustainable Supply Chain Management. The IUP Journal of Operations Management. Vol. IX. No. 4(2010): 1-58 Hugos, Michael H. â€Å"Sustainability in Supply Chain Management.† Essentials of Supply Chain Management. 3rd ed. Hoboken, N.J.: Wiley, 2011. 56-124. Print. Source document

Educated, Unemployed and Frustrated

In today's society it is clearly obvious that times are rough. People are struggling and trying to find a secure career seems to be almost impossible. Millions and millions of people graduate college in the hope that finding the job of their dreams will come so easily. Sadly that is not the case and our newly educated individuals are unemployed. Most having to accept minimum wages positions just to keep up with today's fast paced world. After working so hard for years to make something of yourself, not to mention the debt you are left to pay after. It certainly takes a hefty toll on you emotionally and physically over time.Is there anything we can do to fix this crisis and get back on our feet? In the article Klein states â€Å"My generation was taught that all we needed to succeed was an education and hard work. † Which is absolutely true but it’s not our fault that job are not available. There isn’t anything we can do to change the economic slump. We can place blame and point fingers but it will never get us anywhere. I agree that action needs to be taken but how? Things would change if we could stand up for ourselves, like Portugal, protesting to send a message for change. When are we going to follow their footsteps?People need more of a push to actually want to get out and get a job. Taxes need to be lowered so that businesses can grow, which in turn will create more jobs and result in lower unemployment rates. We all know it’s easier said than done. In the state we are in with high taxes which has lead us to company downsizing and we all know where that leaves us. I am also very well aware that taking money away from the government also means taking away from our economy but there has to be some kind of happy medium. No one should be ashamed to take on positions that pay less than expected, we do what we need to do to get by.Maybe we should be patient and just not expect to get placed in an amazing job right out of school. We sh ould never lose hope in our future and look forward to what’s going to happen tomorrow. It can be really hard to get by these days but we need to look at the brighter side of things and be thankful you have your education, a job that at least pays that bills and your health. Do not get discouraged, you would only be holding back yourself. Never give up trying to accomplish your goals and do not let anything stand in your way of success. In the meantime continue to further your education and keep yourself distracted.Today it seems having to struggle from time to time is common. It’s sad to say that I do not see any change in the near future. We have limited choices and not only one person can make a difference. The only way to see if we can send a message to our government is to take a nationwide protest. Like Portugal, we can take a stand to become a better nation. The government needs to pay a lot more attention to the prevention of the increase in unemployment. Effec ts of unemployment may be devastating. Unemployment also leads to the more stress because there are no means for living.This could also lead to a larger crime rate. Being in such a helpless position, desperate people will start lashing out and stooping down to doing anything they need to just for a decent meal for the night. Stealing to make a living, starting riots and large rebellions to change the existing social order. When you have nothing and your think you have no means for living and are doomed to starvation. Then what else would any of us have to lose? Even though the concluding result is the most extreme and the rarest one but it is the end of this growing unemployment and lack of the government to stop it.

The American Dream - 1560 Words

The American Dream has been a prominent idea in American society for a very long time. It says that anyone, from any class, religion, race or background can achieve a good job, a home, car and family through only their hard work. As time has passed, the American Dream fades further and further from reality and the large gap between people of all kinds is becoming commonly known. In 2011 the first large scale movement, Occupy Wall Street, that showed that Americans were conscious of the economic inequalities in the country and the world. People protested the â€Å"1%†, the top group of wealth owners in the country, and aimed for equality. The media even started to show the inequality between the 1 percent-ers and the rest of the population. The gap between the mega-rich and the rest clearly exists, but people rarely talk about the gap between gender, races, and all the inequalities at all levels of wealth. It is important to understand that a wealth gap does exist between the r ich and everyone else but also to see that inequality is prevalent at all levels of wealth or understand why these disparities occur. Throughout history, wealth in the very richest of their societies has been spread differently and different levels of shares for all of society. While there will always be those few individuals who have billions of dollars, there is large scale growth in America of a small group who holds a large percentage the total income in the country. In 1920s America saw a rise in theShow MoreRelatedImmigrants And The American Dream1362 Words   |  6 PagesImmigrants and the American Dream In the article â€Å"The American Dream†, by James Truslow Adams in The Sundance Reader book, he stated that the American dream is that dream of a land in which life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement. 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