BMW SWOT Analysis analyzes, BMW is one of the largest and most recognizable luxury car brands in the world. With millions of BMW vehicles on the road today, it’s almost impossible to drive around town without seeing a decent amount of their cars. As arguably one of the best-known German car manufacturers in the world, you may think you know everything about the luxury car company.
Did you know? BMW Used to Make Airplanes? It only became involved in auto manufacturing after the Treaty of Versailles prohibited all German companies from making warplanes.
BMW is one of the few auto brands that has stood up to the test of time. It is synonymous with luxury and comfort, and it is well-recognized. The brand’s balance of high quality, style and performance is what makes it stand out.
This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct a SWOT analysis by BMW.
BMW At A Glance – BMW SWOT Analysis
Company: BMW Group
Founders: Camillo | Franz Popp | Karl Rapp
Year of establishment: March 7, 1916
CEO: Oliver Zipse
Headquarters: Munich, Bavaria, Germany
Employees (Dec 2020): 143,778
Ticker Symbol: BMW.DE
Annual Revenue (Dec 2020): US$127.83 Billion
Profit net income (Dec 2020): US$7.58 Billion
Products & Services: Automobiles | Commercial Vehicles | Financial Services | Automobile Repair
Company Website: www.bmw.com
BMW SWOT Analysis – SWOT Analysis Of BMW
SWOT Analysis Of BMW analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With BMW SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about BMW SWOT Analysis. Below Is The Detailed SWOT Analysis Of BMW.
BMW Strengths – BMW SWOT Analysis
1. Premium Quality Products: BMW strives to strike the perfect balance between durability and performance as well as high-end luxury. Every car that leaves the factory is designed to be a state-of-the art vehicle for everyday use.
2. Experience with Green Technology: An automaker that has decades of experience in hybrid or full-electric technology is an advantage, as eco-friendly is the future. Since the 1970s , BMW has been developing electric cars.
3. Worldwide Operations: BMW operates over 30 plants and assembly sites in 140 countries and has a global network.
4. Highly Valued Brand: BMW is a strong, valuable company that focuses on the needs and wants of its customers. 2019 was the 21st year that BMW was ranked as the most valuable brand.
5. Great Reputation: Luxury brands are heavily influenced by their brand’s reputation. BMW is a well-known brand for its excellence. Inter Brand ranked BMW 11 as the strongest global brand in 2019, ranking it 11th.
6. High Research and Development Investments: Research and development is the engine behind success, long-term sustainability, and innovation. BMW invests heavily into hybrids, self-driving, and electric cars.
7. Effective Strategy: A small portfolio eliminates the possibility of straying from pre-set strategies. BMW is a very efficient German machine that relies on highly-effective strategies. With just three brands in its portfolio, BMW functions efficiently.
8. Balanced Geographical Revenues: Long-term sustainability is ensured by diversified income streams from different regions. BMW holds a significant market share in Europe, America and Asia. has hundreds of thousands of cars across each region.
BMW Weaknesses – BMW SWOT Analysis
1. Negative publicity: While BMW requested subsidy from the German government in order to mitigate the effects of the pandemics, the executive decided to pay $1.7bn more in dividends. Even loyal customers can be turned away by this level of greed during difficult times.
2. Controversial recalls: Recalls of cars that have been recalled by automakers can cause a decline in their reputation. Nearly 357,000 BMW models are being recalled in the U.S by BMW. To replace Takata airbags that are defective, there will be more than 1.4 million worldwide.
3. Many Lawsuits: BMW has been involved in several lawsuits including one in South Korea for obstruction and another in Europe for collusion in regards to emissions . It is a serious weakness for the company to be on the wrong side. This makes it hard for customers to trust it.
4. Minimal Portfolio: Although Volkswagen and other top brands have many top brands, BMW’s portfolio is lacking product differentiation. It consists of BMW and MINI.
BMW Opportunities – BMW SWOT Analysis
1. Offer Flexible Options: Millennials, Gen-Z are taking control of the consumer market and require flexible transportation. BMW already owns the cars, so it only needs to create a car sharing app or a car rental company to attract this lucrative market.
2. Attention on Emerging Markets: Thomas Schaefer, Head at Volkswagen Africa, stated that sub-Saharan Africa could have the potential to produce 3 to 4 million more cars. This is a significant increase over the 420,000 vehicles produced in 2017. BMW can capitalize on emerging, untapped markets.
3. Expand into the Self-Driving Industry: Future autonomous vehicles. BMW can help to create the infrastructure needed to meet future demand.
4. Offer Ecofriendly Mobility: As the number of eco-conscious customers increases, so too is the demand for greener mobility options. BMW, as a leader in the electric vehicle market is well placed to capitalize on this demand.
BMW Threats – BMW SWOT Analysis
1. The Coming Global Recession: In times of economic hardship, consumers may reduce or eliminate unnecessary expenses such as buying a BMW. Major economies are currently in recession as a result of the virus’s destruction.
2. Rising Manufacturing Prices: The impact of a variety of complex and competing factors on auto manufacturing can be significant. Due to rising manufacturing costs, BMW’s second quarter earnings fell by 48% in 2019.
3. Stringent regulations: It is easy for automakers to be in trouble when governments pass stringent laws to reduce emissions. BMW faces hefty fines after it was found out that it conspired with Volkswagen and Daimler in order to prevent the rollout of clean-emission technology.
4. Possibility to Tariffs: In 2018, BMW, along with other German automakers, visited the White House to discuss trade. The talks ended with a suspension of tariffs for European cars. It is possible that tariffs will be imposed by the U.S. on BMW and other European vehicles if trade tensions escalate in the future.
5. The Pandemic’s Effects: Production has halted due to a lack of raw materials. BMW and other carmakers have had to cut their financial outlooks because of the virus. It can cause severe damage to BMW’s profitability and even kill it if it continues.
6. Stiff competition: BMW, like all other companies, is vulnerable to losing customers and market share to more powerful competitors like Lexus and Mercedes.
7. Demographic Changes: The millennials are dominating the consumer market but don’t want to take on the full-ownership. This can reduce BMW’s market share and profits.
BMW SWOT Analysis Template
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