Bmw Company Analysis Essay Example | Topics and Well Written Essays - 1500 words

Bmw Company Analysis - Essay Example BMW is and always will be looking for new and innovative vehicles to develop in accordance with the needs and wants of the customers while keeping the environment and safety precautious as number one on the priority list. The all-hybrid vehicle is just one example of such a strategy that is in store for the customers. The other important step that BMW would be taking is to increase value for the customers while achieving higher profitability and growth targets with the programme to tap 6 billion Euros in efficiency potential by 2012. Furthermore the shareholders would benefit from company success to a greater extent and their confidence will be regained. New targets set by the CEO in September, 2007 to regaining the sales target of 8% to 10% in the Automobile segment will quieten down the non-ambitious target critics. Also, to solve its declining Dollar problem, BMW will use natural hedging and increase its purchases primarily in US dollars. Specialized Competitors exist in the industry. Luxury vehicles Mercedes and Audi and Lexus compete directly with some of the classes of BMW. It is tougher for BMW to compete than other premium car makers because it lacks the competition’s economies of scale. Audi uses components and engines from its huge Volkswagen owner just like Lexus uses many crucia l from Toyota’s while Mercedes trucks and smaller cars can provide hidden content for more luxurious models.