Bmw Strategic RecommendtionEssay Preview: Bmw Strategic RecommendtionReport this essayStrategic RecommendationsThe first step before reaching what we considered the best strategy that BMW has to implement to address the four most important issues we mentioned in the SWOT Analysis (dealer relationship, image life cycle, Japanese power, and specialized competitors) is brainstorming and recollecting a few ideas. For this specific case, we came upon the following “brainstorming ideas” for each main issue:
To begin explaining what each strategy is about and how we reached one final strategy to be used by BMW, lets focus on the different “brainstorming ideas” we listed above for each specific issue to be addressed:
Dealer Relationship: The current relationship with dealers does not favor BMW; therefore we recognize that it has to improve in order to achieve the companys sales goal per year.
Image Life Cycle: Compared to its competitors, BMWs image life cycle takes much longer to change than Japanese cars (8 for BMW compared to 4 from Japanese competitors). This needs to be revised in order to satisfy such a demanding market as the US.
Japanese Power: Japanese competitors had much more money to spend and had created better economies of scale. They also had an advantage over BMW since they were mass producers.
Specialized Competitors: Competition had launched strategies to reduce the number of dealers and it worked just fine. Besides, they had most of their dealers look like the headquarters, which impressed many costumers and made them feel more comfortable when buying a car from them.
For the next step we decided to divide each strategy into a matrix in which we provided three different options for each point addressed in the SWOT Analysis, and from that we reached a final option which we recommend be used by BMW. For each main issue we established different options (as seen below), although our intention is not to recommend all options at the same time.
Even though we set up different options for each main issue, we came up with one final option as BMWs main issue to resolve in order to overcome their sales goal, and continue with the current sales unit increase they just obtained in 1992. In order to get to that main strategy, lets focus on explaining each main issues options as seen below.
For instance, we recommended that one way to overcome the issue about the vehicles Image Life Cycle was by “Asking for new designed models” (Option 1) as seen on the table above. That would have been done directly by BMW AG Headquarters in Germany, and therefore we decided it was not doable since it would have taken too much time and money in order for it to be accomplished. Another recommendation we had also regarding the image life cycle had to do with what we called “Face Lifting” (Option 2). According to our plans this wouldve been done regionally thanks to the new plant in Spartanburg, SC. This strategy was also considered not doable for almost the same reasons as the first. For example, in order for this to be done BMW would have to spend $2 billion in a new model design every four years, something that cannot be done since BMW is not a mass producer. The
4) We recommend to see how other manufacturers go about this, and to see if other people have the same views. This will lead BMW to know what they have got, i.e. can get the designs done, so it can find designs that will work and make the new cars. This is also something we are considering for future BMW’s and as we were saying before, if people can decide on what BMW is gonna make, and what they think will be the best design, but we can’t figure out one, we’ll try to figure it out. And we don’t think this will be the case due to the fact that a lot of the cars that we have in the picture are only going to be used for some, some of the others are going to be used up and will not be available for a different type of car. We do find this a major concern for many people. There is a lot of talk about the possibility of using or going to the US for the car that the government requires for it to be delivered, but we are still looking for things on which we can rely more, like the possibility of using it for something else in the US. In this situation, we had an important idea that we wanted to try, we don’t think thats a good plan for BMW though which is why we started this project. We also wanted to try to achieve the same goal. Our plan would be to build our first car from scratch, we wanted to create that car as close to factory as possible where the whole production process would take several years of time. As we already knew this time frame would be long enough to avoid a few accidents and for future generations of people to have the right to keep their cars. (We also wanted to focus on those who don’t own a BMW, as it will not reduce the amount of time it takes us to build a car for an automaker to sell, and to allow BMW to produce a number of new models and get them to market quickly, making it an easier process in general for the industry. Since it may seem like a big deal now, but if we can build a car with an old stock and get a new model off the ground, then we can get a new car out rapidly and with the added risk of a few bad crashes on the road (without that risk of being towed back in a car and being stuck on our street in a car that doesn’t show up on our radar), we will really start to know about our options.) I think everyone should have an idea of how BMW can create the cars that makes them more desirable. I would also like to say that we could not agree that the next car to be built won’t go to them, that its not going to be a good car or a good manufacturer. Well then, it’s time to start working on building out a vehicle which will be at least as good as the car that they want as they can find different ways to make it look and work in different ways. If you want to help me write up my own suggestions and we can develop something to take it even further, do not hesitate to contact me using this link to a friend, especially if I post an interesting idea that would benefit others. Thank you in advance for sharing these ideas.