Free Essay on Marketing Plan: SWOT Analysis

The SWOT analysis of any given firm in the industry acts as bargaining power in the real market situation. The BMW company is one of the well-established companies dealing with automotive, and it also has its SWOT analysis.

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Strengths

One of the strengths of the BMW film is that it boasts one of the best brands when it comes to automotive globally. Interbrand ranks the firm as the third most valuable brand globally, with an estimated worth of $41.5 billion. On the other hand, Forbes argues that globally, BMW is the second-best automotive brand (MacNeill & Chanaron, 2015). In the analysis done by the two firms, only Mercedes-Benz and Toyota can compete favorably with BMW. Additionally, the company boast of a well-established market with the most significant sales coming from international markets. It should be noted that most sales from the company are mainly from China and the U.S, and this acts as a strength in that most of the competitors depend on local markets.

Weaknesses

Besides having strengths, the firm has some weaknesses, such as having a weak brand portfolio. The BMW brand portfolio has only three different brands that are BMW, Rolls-Royce, and Mini (Kauerhof, 2017). As a result of a weak brand portfolio, the firm finds it difficult when the customers taste shifts. Moreover, the company has a challenging trend of increasing the level of debt. As per now, the debt at BMW is the highest in its history and has been on the rise for the last five years. It should be noted that by 2015 the deficit was approximately 130 billion pounds.

Opportunities.

The opportunities are always available in the market, and firms should utilize it to increase its profitability. The fuel prices are forecasted to grow in the new future, and this is an opportunity for BMW (Kauerhof, 2017). The demand for SUVs, trucks, and pickup has been on the rise due to low fuel costs, and this affected the sales for BMW. An increase in fuel price will cause a shift in demand hence benefiting BMW. Secondly, there is a demand for autonomous vehicles, and this will increase the sales of BMW.

Threats

There is a very threatening trend in the market as the competition has been increasing worldwide. Additionally, the new entries in the entry may be competitive; for example, the Tesla company has introduced electric cars causing BMW much trouble (MacNeill & Chanaron, 2015). Moreover, there is the threat of losing some of its markets. For example, the trends in markets in the U.S have been slowing down hence causing a negative impact.

References

Kauerhof, A. (2017). Strategies for Autonomous, Connected, and Smart Mobility in the Automotive Industry. A Comparative Analysis of BMW Group and Tesla Motors Inc. GRIN Publishing. http://www.ciando.com/img/books/extract/3668412855_lp.pdf

MacNeill, S., & Chanaron, J. J. (2015). Trends and drivers of change in the European automotive industry:(I) mapping the current situation. International journal of automotive technology and management, 5(1), 83-106. https://www.inderscienceonline.com/doi/abs/10.1504/IJATM.2005.006881