Free Paper with a Report on BMW's Contemporary Business Strategy

Published: 2022-09-26
Free Paper with a Report on BMW's Contemporary Business Strategy
Type of paper:  Report
Categories:  Automotive industry Business strategy
Pages: 4
Wordcount: 895 words
8 min read

In the automotive industry, brand positioning is a factor that establishes a competitive advantage in the market. BMW is one of the brands has developed as a strong position in the market. BMW is positioned in the premium car category thus presenting competition to other market players in the same class such as Mercedes Benz and Audi (Boston, 2015). The company has focused on building its brand for a sustainable future keeping competitors close and staying ahead in the industry. It is thus necessary to note that BMW's business strategy is based on four key areas which are profitability, technology, growth and focus on the future.

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Over the years, BMW has seen the manufacture of cars of different body designs, power, technology among other sophisticated features. The extensive line of differentiated products for the company has created a market demand and expectation for even better products and designs for the future. The competitiveness and sophistication of BMW cars can thus be attributed to the following factors as discussed;


In the luxury car segment, technology plays a crucial role in brand positioning. New players in the market such as Tesla have presented a threat to BMW due to their technological advancements. However, BMW has made an essential step in ensuring that its technology can be used for the customer's advantage. The technology categories within which the company has worked to improve are in navigation, collision avoidance, comfort and convenience, entertainment and also smartphone connectivity (Schutte, 2018).

A survey conducted showed that technology is a driver towards increased competitiveness of a brand in the market. Consumers prefer high tech cars due to the various advantages they bring. For example, improved technology helps cars avoid accidents that increase the safety of both drivers and their passengers. Also, BMW has been in the forefront when it comes to manufacturing of electric vehicles. The BMW I-Series have seen models that operate both electric and fuel-based systems. As such, the car manufacturer has looked at the importance of the global environment and also the needs of the people.

Research and Development (R&D)

BMW holds R&D as a significant factor for their development for the future. The company's competitive environment is very challenging due to its brand positioning. For it to be able to sustain its competitiveness in the future, it will be essential to keep on innovating new products and features which are in line with the current market trends. The automotive industry is experiencing increased changes due to technology disruption around the world. As a major market player, BMW ought to focus on increased innovation for the company that will position the brand competitively in the market (Schutte, 2018).

The study shows that BMW has raised its R&D budget to about 7 billion Euros with a focus on building 25 different models of electric cars by 2025 Taylor, E. (2018). The spending is mostly on electric and autonomous cars. BMW has thus been able to stay competitive even for the future through increased R&D for the company which ensures that every vital opportunity for new technology is taken.

Human Resource

In BMW, the concept of Human resource management is based on the need for intelligent minds that can think differently and flexible with the changing competitive environment. A smart team can help build innovations for the company for the future and also maintain the creativity of the brand for the future (Schutte, 2018). BMW offers an environment where the employees can learn and get trained in the primary actors within the automotive industry thus helping the employees understand the key issues that will help the company gain a positive competitive advantage. Also, the company has put a focus on employing young talents identified from various colleges and developing them to become the industry's experts.

Pricing Strategy & Distribution

BMW pricing strategy has ensured that customers are aware that they are making a purchase of a high-end brand and also, they get value for their money (Boston, 2015). BMW Group has a differentiated strategy in the pricing of its cars due to their wide range of products. BMW has manufactured various products that are aligned to different regions and also different technological needs. The pricing of each model is thus based on factors such as engine size, fuel consumption, sports version among other technological features that a customer may need. The more sophisticated the model the high the costs.

BMW has distributors all over the world covering all the continents. The company operates in about 100 different countries with over 4400 dealers thus creating an efficient distribution channel for the car manufacturer (Boston, 2015). It is important to note that the distribution channel creates a competitive advantage since it provides a ready market for its products. Besides, it also serves as an excellent platform for branding and public relations. The brand is thus creating new markets and changing the concept of luxury cars all over the world with the support for climate change.


Boston, W. (2015). BMW retains title of world's top luxury car brand. Wall Street Journal. Retrieved from

Schutte, S. (2018). The importance of creativity and innovation - and how BMW is driving both. Realbusiness. Retrieved from

Taylor, E. (2018). BMW raises R&D spending for electric, autonomous cars. Reuters. Retrieved from

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