Bmw Competitive Analysis Essay

1433 Words Oct 20th, 2012 6 Pages
BMW Competitive Analysis The automobile industry is the most interesting and complex business sectors in the global framework for analysis. The Japanese cars are now supplemented by luxury models, such as Lexus Infinity and Acura to compete with European cars made by BMW and Mercedes and Audi. In this analysis, I’m going to develop company profile of BMW and its competitors (Lexus and Mercedes-Benz) per Porters criteria.

BMW AG Group

BMW AG was founded in 1916. Today the Company is one of Germany’s largest and most successful car and motorcycle manufacturers in the world. BMW Group owns three of the leading premium brands in the automobile industry: BMW, MINI and Rolls-Royce. They set the highest standards in terms
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The company also introduces two Active E 100% electric concepts i3 and i8. Over the past several years there been sales increases for smaller vehicles. They have been the primary driver for the company's net sales growth. The trend is BMW to increase its share in the luxury car market, where Lexus has a full range of hybrid vehicles and expects an increase in market share. Mercedes Benz trend is to lose market share for the last decade, and most likely BMW and Lexus will continue to eat Mercedes Benz's lunch in the market. Lexus financial stability is backed by its parent Toyota.

Financial strength BMW Group been named sector leader in by the SAM Group for the DJS Indexes for seven years in a roll. The BMW Group is also the only company in the automotive industry that is listed in this family of indexes every year since it was established in 1999. BMW common stock was the DAX-30 best-performing share last year. Mercedes Benz has the financial stability backed by Daimler AG. There index DDAIF increase to $92 per share after the company reported record annual results.

Profitability BMW and Mercedes profits increased in 2011 while Lexus earnings fall in the last quarters due to the Sendai Earthquake.

Management BMW has a typical corporate structure with several boards. Of those, the most important is the management and the advisory board. The management board is responsible for the daily

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