| BMW Strategic Analysis | | | | Management 452.301 |

Table of Contents Executive Summary 2 Introduction of Company and Current Situation 3 External Environment Analysis 4 General Environment 4 Industry Environment 6 Competitor Environment 7 Conclusion of External Environment Analysis 8 Internal Analysis 10 VRIN Analysis 10 Financial Analysis 12 Conclusion of Internal Analysis 15 Strategy 16 Identification of Key Problems 20 Recommendations and Implementations 21 References 24

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Executive Summary

BMW is known for its manufacturing of premium-brand cars and off-road vehicles under the BMW, MINI, and Rolls-Royce labels, as well as motorcycles under the BMW and Husqvarna brands.
To complete an external analysis, we evaluated the general, industry, and competitor environments.
External Environment Analysis
General Environment

Environmental trends within the luxury automotive industry are significant, though not as much as with lower-end vehicles. The physical segment has been changed due to rising fuel prices, pressuring the companies in industry to find way to create more fuel efficient sports cars. The rising fuel prices can be pinned on the recent economic recession. Also, the rising fuel prices impact the sociocultural segment by creating a more environmentally friendly conscious population. Those who are in a position to buy luxury vehicles are not as concerned about saving money through buying less gasoline. Still, this doesn’t mean that consumers won’t be concerned about MPG; because of this, it is still important that luxury automotive manufacturers offer fuel efficient options. Figure 1 illustrates the trend of increasing fuel economy in new vehicles.
Figure 1: Fuel Economy

Social factors are important within this industry. Those who spend the money on a higher quality car usually want people to know the high quality brand they purchased; so many manufacturers have increased the make identification size on their vehicles.
Economic conditions will continue to have an effect on almost all industries, and luxury cars are no exception. While the current interest