Bmw Strategic Recommendtion Essay example

898 Words Feb 18th, 2006 4 Pages
Strategic Recommendations

The first step before reaching what we considered the best strategy that BMW has to implement to address the four most important issues we mentioned in the SWOT Analysis (dealer relationship, image life cycle, Japanese power, and specialized competitors) is brainstorming and recollecting a few ideas. For this specific case, we came upon the following "brainstorming ideas" for each main issue: To begin explaining what each strategy is about and how we reached one final strategy to be used by BMW, let's focus on the different "brainstorming ideas" we listed above for each specific issue to be addressed:
Dealer Relationship: The current relationship with dealers does not favor BMW; therefore we recognize
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In order to get to that main strategy, let's focus on explaining each main issue's options as seen below. For instance, we recommended that one way to overcome the issue about the vehicle's Image Life Cycle was by "Asking for new designed models" (Option 1) as seen on the table above. That would have been done directly by BMW AG Headquarters in Germany, and therefore we decided it was not doable since it would have taken too much time and money in order for it to be accomplished. Another recommendation we had also regarding the image life cycle had to do with what we called "Face Lifting" (Option 2). According to our plans this would've been done regionally thanks to the new plant in Spartanburg, SC. This strategy was also considered not doable for almost the same reasons as the first. For example, in order for this to be done BMW would have to spend $2 billion in a new model design every four years, something that cannot be done since BMW is not a mass producer. The last strategy we tried to recommend for the image life cycle was to have "New options for technology" (Option 3) within the vehicles. Again, we stumbled with the same rock as the other two strategies and felt it was simply not cost efficient as well as time consuming. For these reasons, although we recognize that BMW's decision to locate in the US is not cost driven but market driven, we decided to eliminate this as the main issue to

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