Introduction
We would argue that premium automobile industry and more specifically BMW; possess a global strategy. Within in this paper we will examine the strategy of the premium automobile industry as well as that of BMW’s through examples of each company’s actions. Furthermore; a discussion regarding the business structure of the company will be held. Once the structure has been identified we will explain why this all fits together and works; ultimately giving BMW a competitive advantage. In this paper we will regard the premium automobile industry as being Mercedes-Benz, BMW, and Audi.
Industry Strategy
The premium automobile industry utilizes a global standardized strategy. Upon research into the matter we have discovered that all three German automobile companies manufacture, sell, advertise, and market in different countries around the world. We believe these manufactures have chosen this strategy to reap the maximum benefits from low cost advantages. For example Mercedes Benz which is part of Daimler AG has its main headquarters in Stuttgart, Baden Wurttemberg Germany however the company operates worldwide. In fact Mercedes Benz has manufacturing plants in China, Russia, USA, England, India etc. For Daimler to reach Mercedes Benz Car sales targets, they are placing more effort in local activities, especially in China, Brazil and India. (Daimler, 2014) An example that demonstrates this is an increase in the local manufacturing capacities production in China; is that of the long wheelbase local model series, such as the Glk SUV and the E-Class. (Daimler, 2014) In addition, during 2014 they began the production of the long wheelbase model series version of the C-Class in China. Mercedes also has planned the future production
We would argue that premium automobile industry and more specifically BMW; possess a global strategy. Within in this paper we will examine the strategy of the premium automobile industry as well as that of BMW’s through examples of each company’s actions. Furthermore; a discussion regarding the business structure of the company will be held. Once the structure has been identified we will explain why this all fits together and works; ultimately giving BMW a competitive advantage. In this paper we will regard the premium automobile industry as being Mercedes-Benz, BMW, and Audi.
Industry Strategy
The premium automobile industry utilizes a global standardized strategy. Upon research into the matter we have discovered that all three German automobile companies manufacture, sell, advertise, and market in different countries around the world. We believe these manufactures have chosen this strategy to reap the maximum benefits from low cost advantages. For example Mercedes Benz which is part of Daimler AG has its main headquarters in Stuttgart, Baden Wurttemberg Germany however the company operates worldwide. In fact Mercedes Benz has manufacturing plants in China, Russia, USA, England, India etc. For Daimler to reach Mercedes Benz Car sales targets, they are placing more effort in local activities, especially in China, Brazil and India. (Daimler, 2014) An example that demonstrates this is an increase in the local manufacturing capacities production in China; is that of the long wheelbase local model series, such as the Glk SUV and the E-Class. (Daimler, 2014) In addition, during 2014 they began the production of the long wheelbase model series version of the C-Class in China. Mercedes also has planned the future production