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BMW Group

Company report, featuring a PESTLE, Porters Five Forces, 5C, MOST, CATWOE and SWOT analysis

HomeSWOT AnalysisAutomotiveBMW Group

Introduction

This study on BMW Group, part of our coverage of the world’s largest 10,000 companies, is produced and regularly updated to provide the most up to date content.

Only Premium members have access to this study on BMW Group, which includes a wealth of high value information, such as the SWOT analysis, PESTLE, 5C analysis, CATWOE, Porters Five Forces, MOST analysis and more.

Apart from the sections focused on analysis, we identify potential new products and services, predict future market trends, and analyse the potential synergies between BMW Group and other organisations.

Company Description

The BMW Group is a global leader in premium mobility, headquartered in Munich, Germany. Founded in 1916, the company produces and sells automobiles, motorcycles, and luxury vehicles, as well as offers financial services. Its main products and services include cars, motorcycles, engines, services, and financial services, and its vehicles are sold in over 140 countries. BMW Group also has a significant presence in the luxury mobility and technology markets.

Industry Overview

The BMW Group operates in the automotive industry, which globally is estimated to be worth approximately $2 trillion US Dollars. The industry employs approximately 70 million people and is spread across many countries worldwide. In the BMW Group, the majority of employees are based in Germany, with additional production sites worldwide. The BMW Group itself employs over 126,000 people and produces over 2 million cars annually.

Industry Classification

In terms of formal classification, Platform Executive has tagged BMW Group as a business operating within the Automotive Manufacturers industry.

Table of Contents

1.  Introduction
2.  Company Description
3.  Industry Overview
    3.1  Industry Classification
4.  Intellectual Property
5.  Major Products and Services
6.  Key Competitors
7.  Stakeholders
8.  Value Proposition
9.  Customers and Cohorts
10.  Competitive Advantages
11.  Market Trends
12.  Key Performance Indicators
13.  Financials (BETA)
    13.1  Highlights
    13.2. Board members
    13.3  Share Performance
    13.4  Income Statement
14.  PESTLE Analysis
15.  Potential Products/Services
16.  Potential Synergies
17.  Porter's Five Forces
18.  CATWOE Analysis
19.  SWOT Analysis
    19.1  Strengths
    19.2  Weaknesses
    19.3  Opportunities
    19.4  Threats
20.  5C Analysis
21.  MOST Analysis
22.  Innovation Scorecard
23.  Appendices
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Intellectual Property

Some of the Patents granted to, or relevant to the organisation include the following:

Patent Title: Method for producing a suspension strut
Patent ID: US10642096B2
Date: April 14, 2020

Patent Title: Method for producing a vehicle body component
Patent ID: US10642095B2
Date: April 14, 2020

Patent Title: Method for producing a safety component
Patent ID: US10642094B2
Date: April 14, 2020

Patent Title: Method for producing a wheel drive component
Patent ID: US10642093B2
Date: April 14, 2020

Patent Title: Method for producing a wheel suspension component
Patent ID: US10642092B2
Date: April 14, 2020

Patent Title: Method for producing a transmission component
Patent ID: US10642091B2
Date: April 14, 2020

Patent Title: Method for producing a steering component
Patent ID: US10642090B2
Date: April 14, 2020

Patent Title: Method for producing a wheel component
Patent ID: US10642089B2
Date: April 14, 2020

Patent Title: Method for producing a body component
Patent ID: US10642088B2
Date: April 14, 2020

Patent Title: Method for producing a drive component
Patent ID: US10642087B2
Date: April 14, 2020

Patent Title: Method for producing an exhaust component
Patent ID: US10642086B2
Date: April 14, 2020

Major Products & Services

The main products and/or services commercialised by this business include the following:

  • Luxury vehicles: cars, SUVs, and crossovers
  • Motorcycles
  • Financial services
  • Mobility services
  • Technology and advanced driver assistance systems
  • Automotive parts and accessories
  • Classic car restoration services
  • Vehicle customization services

Key Competitors

We have identified the following organisations as being key competitors:

  • Mercedes-Benz
  • Audi
  • Lexus
  • Tesla
  • Cadillac
  • Lincoln
  • Porsche
  • Jaguar
  • Volvo
  • Acura
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Key Stakeholders

Stakeholders are individuals or groups who have an interest in a business and/or are affected by its actions.

These stakeholders can have different requirements and expectations from the business, which must be taken into account when making decisions.

By understanding their stakeholders’ requirements, a business can make informed decisions that benefit all involved.

Below is the list of internal and external stakeholders we have identified for this business:

1. Customers: BMW Group seeks to satisfy its customers by providing them with quality products and services.

2. Employees: BMW Group seeks to create meaningful and rewarding working environments for its employees, by offering competitive salaries, benefits, and career development opportunities.

3. Shareholders: BMW Group seeks to provide its shareholders with a return on their investment that is in line with their expectations.

4. Suppliers: BMW Group relies on its suppliers to provide quality materials and services to ensure that its products and services meet customer expectations.

5. Government: BMW Group works with government agencies to ensure compliance with laws and regulations.

6. Industry Partners: BMW Group works with industry partners to help develop and innovate its products and services.

7. Communities: BMW Group seeks to support the communities in which it operates, through charitable donations and other initiatives.

Value Proposition

A value proposition explains the unique value and/or benefits that an organisation provides to its customers, partners, stakeholders and the overall market. It outlines what makes a company like BMW Group different from its competitors, along with what it can offer that key competitors cannot.

A corporate value proposition can be used with the competitive advantages section of this report in order to better understand BMW Group and its position within the marketplace.

BMW Group is a global premium brand that provides drivers with a unique experience. The brand offers a wide range of vehicles, including sedans, SUVs, and coupes, as well as motorcycles and bicycles. BMW Group also offers a full line of services, including maintenance, customization, and protection. The brand’s value proposition is its commitment to providing drivers with a high-quality experience and its dedication to sustainable innovation.

Competitive Advantages

Competitive advantages are unique attributes, strategies, resources, or capabilities that allow an organisation to outperform its competitors and achieve superior market position and profitability.

Competitive advantages for the business include the following:

Brand Recognition: BMW has one of the most iconic brands in the automotive industry, with a highly recognizable logo and a long history of producing quality vehicles.

Product Innovation: BMW is constantly innovating and looking for ways to stay ahead of the competition. Its vehicles are equipped with advanced technology and designed for performance.

Financial Strength: BMW has a strong financial position, allowing it to invest heavily in research and development, as well as new product lines.

Distribution Network: BMW has a large, global network of dealers and distributors, allowing it to reach customers in different markets.

Corporate Social Responsibility: BMW has a commitment to sustainability and is actively involved in community initiatives.

Customers & Cohorts

As part of this competitive intelligence study, we have identified the main customers of the organisation.

These include the following cohorts:

  • Private customers
  • Business customers
  • Fleet customers
  • Government customers
  • Diplomatic customers
  • Mobility customers
  • Rental customers
  • Leasing customers
  • Dealership customers
  • Corporate customers

Market Trends

Market trends can impact an organisation by influencing consumer behavior, altering supply and demand dynamics, and affecting the organisation's ability to remain competitive in the market.

As part of this study, we have identified a number of potential short-term to medium-term trends that could impact the organisation. These include the following:

Key Market Trends
Autonomous Vehicle Technology The rise of autonomous vehicle technology is expected to have a significant impact on the BMW Group in the coming years. The company is already at the forefront of this technology and has been one of the first major automotive manufacturers to offer driver-assistance features such as adaptive cruise control and lane keeping assistance. As the technology improves, BMW will be able to offer more sophisticated features which could give them a competitive edge over their rivals.

Electric Vehicle Adoption The rapid adoption of electric vehicles is another trend that could have a major impact on the BMW Group. The company has already committed to offering 25 electric models by 2025 and is investing heavily in the development of electric vehicle technologies. With the increasing focus on electric vehicles and the potential for government incentives, BMW is well-positioned to benefit from this trend.

Ride Sharing The rise of ride-sharing services such as Uber and Lyft is another trend that could affect the BMW Group. This trend could lead to a decrease in the number of traditional car buyers, as customers opt for ride-sharing services instead. BMW could respond to this trend by offering more customized services and vehicles tailored to the ride-sharing market.

Connected Vehicles The increasing prevalence of connected vehicles is another trend that could impact the BMW Group. With the advent of 5G technology, connected vehicles are becoming more common, allowing drivers to access a variety of services such as real-time traffic information, remote diagnostics and vehicle tracking. BMW could capitalise on this trend by offering more connected features in their vehicles, giving them an edge over their competitors.

Key Performance Indicators

Key Performance Indicators

Below is a list of KPI's that we have identified as being strategically relevant to this organisation:

Financials (BETA)

The key financials for BMW Group include income statements, which can be found in their annual reports. These financial statements provide information on the organisation's financial performance and health, including revenue, expenses, and profits. This information, along with other indicators are used by investors, analysts and other stakeholders to evaluate the company's performance and future prospects.

Where a financial does not match, we have included those of the parent company (if a listed entity). If the financials are missing please contact us and we will prioritise the update.

Key Financials

Key Personnel

Income Statement

Highlights

Top-level corporate stats and financial highlights for the listed entity, include:

Share Performance

Below is the current (EOD) share performance for the company, or its listed parent:

Potential Products/Services

As part of this study we have attempted to prognosticate potential products and/or services this organisation could develop in the short to medium-term.

BMW Group Car-Sharing Service: A car-sharing service allowing customers to rent BMW cars on a short-term basis.

BMW Group Autonomous Driving Technology: Developing and offering autonomous driving technologies such as self-parking, lane departure warnings and automatic emergency braking systems.

BMW Group Connected Car Service: A connected car service that would enable customers to monitor their vehicle’s performance remotely, as well as receive maintenance alerts and roadside assistance.

BMW Group Mobile App: Developing and offering a mobile app that provides customers with a range of services such as booking test drives, locating nearby dealerships and ordering parts.

BMW Group Ride-Hailing Service: Developing and offering a ride-hailing service that allows customers to book rides in BMW vehicles with the option to choose the driver.

BMW Group Car-Subscription Service: Offering a car-subscription service that allows customers to rent BMW vehicles on a monthly basis.

BMW Group Electric Vehicle Charging Stations: Installing electric vehicle charging stations at BMW dealerships and other locations across the country to accommodate the increasing demand for electric vehicles.

BMW Group Car-Customisation Service: Offering a car-customization service that enables customers to customize their BMW vehicle with a range of interior and exterior options.

Potential Synergies

Using our product and portfolio-matching algorithm, we have determined that the following organisations have potential synergies with the company:

1. Tesla
2. Microsoft
3. Apple
4. Intel
5. Mercedes-Benz
6. Audi
7. Volvo
8. Google
9. Bosch
10. Samsung

Porter's Five Forces

Created by Harvard Business School Professor Michael Porter in 1979, Porter's Five Forces model is designed to help analyse the particular attractiveness of an industry; evaluate investment options; and better assess the competitive environment.

The five forces are as follows:

  • Competitive rivalry
  • Supplier power
  • Buyer power
  • Threat of substitution
  • Threat of new entries
The Porters 5 forces for BMW Group are as follows:

1. Threat of new entrants: The car industry is a HIGHLY competitive one with many large and established players. As such, the threat of new entrants is relatively LOW. BMW Group scores WELL in this area.

2. Threat of substitutes: The car industry faces a number of substitute products, such as public transport, bicycles and motorcycles. However, these substitutes are not as appealing as cars for many people, meaning the threat is not as great as it could be. BMW Group scores WELL in this area.

3. Bargaining power of suppliers: The car industry is reliant on a number of key suppliers, such as those who provide raw materials, components and assembly services. These suppliers have a great deal of bargaining power, which can put pressure on carmakers like BMW Group.

4. Bargaining power of buyers: Car buyers have a great deal of bargaining power, as they can choose from a wide range of brands and models. This puts pressure on carmakers to offer competitive prices and good quality products. BMW Group scores WELL in this area.

5. Threat of rivalry: The car industry is HIGHLY competitive, with a large number of rival firms offering similar products. This puts pressure on carmakers to differentiate their products and to offer value for money. BMW Group scores WELL in this area.

PESTLE Analysis

This PESTLE analysis is a strategic planning tool that assesses key external factors affecting the organisation, including the following:

  • Political
  • Economic
  • Social
  • Technological
  • Legal
  • Environmental

Each of these factors is analysed to determine their impact on the organisations strategy, objectives, and operations.

By utilising a PESTLE analysis, the organisation can make better decisions and develop strategies to address potential risks and opportunities.

PESTLE Analysis

CATWOE Analysis

CATWOE

The CATWOE analysis is used to investigate each stakeholders perspectives in order to enable the business to make informed decisions.

The CATWOE analysis is a problem-solving tool consisting of six elements:

  • Customers
  • Actors
  • Transformation process
  • World view
  • Owners
  • Environmental constraints

We view the CATWOE as being most useful when used in conjunction with other problem-solving tools such as a SWOT analysis.

Customers: The customers of the BMW Group are individuals and businesses who purchase or lease their vehicles, as well as BMW-certified mechanics who service the vehicles.

Actors: The main actors of the BMW Group are its customers, employees, shareholders, suppliers, dealers, and community stakeholders.

Transformation process: The BMW Group is a global car manufacturer and distributor that designs, produces, and sells luxury automobiles, motorcycles, and other vehicles. The company provides a full range of services including financing and leasing, vehicle maintenance, and parts and accessories.

World view: The BMW Group strives to provide its customers with the highest quality products and services and to create an enjoyable and rewarding experience for its customers. The company places a strong emphasis on sustainability and takes a proactive approach to environmental protection and social responsibility.

Owners: The BMW Group is owned by BMW AG, a German public company listed on the Frankfurt Stock Exchange.

Environmental constraints: The environmental constraints faced by the BMW Group are increasing global regulations regarding vehicle emissions, fuel efficiency, and safety standards. The company is also subject to economic and political fluctuations, as well as competition from other car manufacturers.

SWOT Analysis

This SWOT analysis is a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of the BMW Group business.

When creating this SWOT the team at Platform Executive have taken into consideration the corporate strategy; brand; key financials; the competitive landscape; along with the products and/or services offered.

To offer increased context for future innovation and product development we also consider the historical context for the business and industry; and perceived direction of travel.

Upon researching the company, we have uncovered a number of strategic and operational strengths, weaknesses, opportunities and threats.

SWOT Analysis

Strengths

Below is a list of the strengths we have identified for the business:

1. Premium pricing strategy: BMW Group charges a premium for its vehicles, which allows the company to generate higher profits compared to its competitors.

2. Strong brand equity: BMW Group has built up strong equity in its brands, which allows the company to command a higher price for its vehicles.

3. Innovative products: BMW Group is known for its innovative products, which have helped the company to gain a competitive advantage in the market.

4. Excellent distribution network: BMW Group has an excellent distribution network, which allows the company to reach its customers in a timely and efficient manner.

Opportunities

Below is a list of opportunities we have identified for the business:

1. BMW Group should focus on high-end product development and design. This can be achieved by investing in research and development to create luxury vehicles that reflect their brand identity, as well as implementing cutting-edge technology to provide an enhanced customer experience.

2. BMW Group should expand their presence in the global market by opening new dealerships in different countries and regions. This will ensure that customers have access to the latest models and services, while also increasing the company's brand awareness and customer base.

3. BMW Group should focus on improving their production efficiency and cost control. This can be achieved by investing in new production technologies, streamlining processes and optimising supply chain management.

4. BMW Group should invest in digital marketing and customer engagement initiatives. This includes developing an effective online presence, creating customer loyalty programs, engaging customers through social media, and offering personalised services. This will help to better reach, understand, and serve their customers.

Weaknesses

Below is a list of the weaknesses we have identified for the business:

1. Lack of focus on luxury market: In an attempt to appeal to a wider range of customers, BMW has expanded its product range to include entry-level and mainstream models. This has diluted the brand and moved it away from its core luxury positioning.

2. Over-reliance on China: China is BMW’s largest market, accounting for over a quarter of its sales. However, the country’s slowing economy and ongoing trade tensions with the US are posing a major risk to the company’s growth.

3. Struggling Mini brand: BMW’s small car brand, Mini, has been struggling in recent years with declining sales and profitability. The brand is in need of a turnaround plan to regain its former glory.

4. High costs: BMW’s costs are relatively high compared to its competitors, which puts pressure on margins. The company is also investing heavily in new technologies such as electric vehicles, which could further increase costs in the future.

Threats

Below is a list of the threats we have identified for the business:

1. Increasing competition in the luxury car market: With the rise of luxury car makers such as Tesla and other Chinese competitors, BMW Group faces increasing competition in the luxury car market. This could lead to decreased market share and revenue for the company.

2. Increasing raw material costs: With the increasing cost of raw materials such as steel, aluminum, and rubber, the production cost for BMW Group is also increasing. This leads to an erosion of company’s margins, which in turn affects the company’s overall profitability.

3. Decreasing demand for luxury cars: The demand for luxury cars is decreasing due to the weak economic conditions. This affects the sales of BMW Group and its overall profitability.

4. Increasing global emissions regulations: The global emissions regulations are becoming increasingly stringent. This requires BMW Group to invest in developing new technologies to meet the requirements, which may lead to an increase in the cost and complexity of the production process.

5C Analysis

The 5C Analysis is a marketing framework that can be used to provide insight into the key drivers of success, as well as the risk exposure to various environmental factors.
This (concise) 5C analysis examines the external and internal environment for BMW Group. It includes analysing the company's customers, competitors, collaborators, context, and capabilities. We have produced this short analysis to identify potential opportunities and threats to BMW Group, as well as areas where the company needs to improve its operations or strategy.
Company: BMW Group is a multinational corporation that designs, manufactures, and sells luxury cars and motorcycles. It is also involved in financial services, engine production, and other automotive-related services. It is headquartered in Munich, Germany.

Collaborators: BMW Group has partnerships with many companies in the automotive industry, including suppliers, dealerships, and other car manufacturers. It also has alliances with other companies in the technology, finance, and services sectors.

Customers: BMW Group’s target customers are affluent individuals and businesses. Its products are known for their high quality, luxurious design, and performance.

Competitors: BMW Group’s main competitors include Mercedes-Benz, Audi, Lexus, and Porsche. All of these companies produce luxury vehicles, with similar features and prices.

Content: BMW Group’s content focuses on showcasing its vehicles and giving customers an inside look at the company. Its content includes product information, lifestyle stories, and automotive news and trends. It also provides educational content to help customers make informed decisions when purchasing vehicles.
5C Analysis

MOST Analysis

MOST Analysis

The MOST analysis framework is commonly used to identify an organisation's strategic goals, assess its strengths and weaknesses, and develop a plan to achieve its objectives. This analysis helps organisations to focus on what they want to achieve and how to achieve it, while also identifying potential roadblocks or obstacles that may arise along the way.

  • Mission
  • Objectives
  • Strategy
  • Tactics

We have created this analysis from a 3rd person perspective.

Innovation Scorecard

As part of our research and analysis activity, the team at Platform Executive assesses and then benchmarks businesses and the industry verticals in which they operate using a proprietary scoring mechanism.

First, we allocate a score of A-E for the industry vertical, gauged on the key organisations operating within the space; and then score the individual business using a 1-5 score.

A score of D-E within an industry means that it is potentially ripe to be disrupted by a new entrant into the marketplace; and/or vulnerable to technological change.

Likewise, a high score of 4-5 for the company in question indicates that in the view of the analysis team it lags behind notable businesses in terms of innovation and product pipeline.

Innovation Scorecard

Below is a guide to each score:

Industry score:

A The industry is amongst the most innovative; with the leading players all driving the sector forward.
Example industry: PaaS
B The industry and its leading players have a good track record of innovation; and can quickly react to change.
Example industry: Pharmaceutical
C Companies operating within the sector have adequate levels of innovation; and engage in R&D activities when appropriate.
Example industry: FMCG
DBusinesses operating in the industry do not invest enough time and resource into innovation. The sector is stagnant and a good candidate for disruption.
Example industry: Retail Banking
E The major players in the sector seem to lack suitable product development roadmaps; and as a result the sector is highly vulnerable to industry change.
Example industry: Publishing

 

Company score:

1 The business is amongst the leading players in terms innovation and product pipeline. This will fulfil and reinforce the operations of the business in the medium to long-term.
2 The business has a good track record of innovation, in terms of its products and/or its business model. It is therefore more likely to be able to react and adapt to any changes to the industry.
3 The business is deemed to have an adequate innovation plan, build on research and development and sustainability where appropriate. The business has a product development strategy.
4The business needs to invest more resource and/or intellectual capital in product development, pipelines and/or its business model. The business is at risk of stagnation.
5 The business seems to lack a suitable product development roadmap; and as a result is vulnerable to any notable industry change and/or new entrants in the marketplace.
The team at Platform Executive has judged BMW Group as having an innovation score of B3.

Appendices

The appendices section of this report contains supplementary information that the team at Platform Executive deems helpful in providing a more comprehensive understanding of the report's contents.

This information is not considered an essential part of the study but serves as a useful supplement to the main text.

Methodology

This study on BMW Group forms part of our series of competitive intelligence reports, which focuses on 10,000 of the largest corporates.

The information and data included are updated on a timely schedule to ensure that our Premium members receive the most up to date information .

The report is based on information and learning from the following sources:

  • Corporate websites
  • Proprietary research databases
  • SEC Filings
  • Corporate press releases
  • News articles
  • Financial data API's
  • Product-matching algorithm

Further Information

Premium members: If you cannot find the desired information or data set for the business you are researching then please reach out to our research and analysis team. We can tailor reports to meet your requiremnents, with a fast turnaround time.

If you require a bespoke study on a particular industry vertical, or marketplace we may also be able to help.

Disclaimer

All Rights Reserved.

Reproduction of the content produced in this report is prohibited without the prior permission of the publisher, Platform Executive Pty Ltd.

The facts of this report have been gathered in good faith from both primary and secondary sources. It is believed to be correct at the time of publication, but cannot be guaranteed. As such Platform Executive can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Changelog

Premium members: To request a priority update to this report, please contact us. Our standard turnaround time is normally 48 hours.

The changelog for this report can be found below, complete with the next scheduled update:

v1.1: Initial load of report
Date: 1st March 2023

Key Financials added (BETA)
Date: 17th March 2023

Next scheduled update: 29th May 2023

Industry Keywords

Related keywords:
AutomotiveengineeringLuxurymanufacturing
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