In-Depth SWOT Analysis of BMW | Strengths Weaknesses Opportunities & Threats

About BMW

The German car manufacturing company BMW was founded in 1916 as a joint venture with the Rapp Motorenwerke aircraft company. Today, BMW has grown to be one of the most prestigious car manufacturers globally due to their wide variety of cars, including SUVs, sedans, coupes, convertibles, and motorcycles.

BMW is one the most valuable brand in the world, with a market value of $ 20.5 billion(2020) and is ranked 61 with brand value. In 2012, Forbes named BMW one of the world’s most well-known companies.

In 2015 BMW was the best car brand according to Auto Express magazine. The BMW Group was awarded Brand of the Year of 2016 by Wahda magazine for the second time.

In 2016, Forbes magazine ranked BMW as the world’s most valuable brand.

BMW reported approximately 99 billion euros in revenue in 2020, including the MINI and Rolls-Royce divisions. The company’s sales decreased by about 5% during the coronavirus pandemic, while deliveries decreased by about 8%. Despite this, the BMW brand remains one of the world’s leading luxury automobile brands.

Besides that, BMW’s strength lies in the high quality of its goods. On the basis of engineering capabilities, BMW is regarded as a valuable commodity. Trained laborers, on the other hand, would yield results and higher-quality goods.

Furthermore, BMW will typically recall their vehicles less often than competitors. Highly skilled workers can be described as a third force in BMW’s SWOT review.

Premium materials are needed to manufacture a higher-quality car and a highly skilled workforce, and BMW employs only the most skilled employees to produce the vehicle.

BMW established assembly plants in countries such as the United States and Germany, where only the most qualified assemblers are employed. On Corporate Social Responsibility (CSR), BMW is deeply committed to environmental protection, worker and community welfare, and a sustainability policy.

BMW has been working towards improving its supply chain to ensure that their products are more sustainable and environmentally friendly. They include a “Sustainable Supplier” program so that suppliers become responsible for carbon dioxide reduction in their supply chain.

This is so that no additional emissions are produced, and reduced energy consumption allows for the usage of fewer fossil fuels. This is a very beneficial program to BMW because it increases resource efficiency, lowers power consumption on the supply chain, and decreases carbon dioxide emissions.

The organization invests heavily in employee health management systems that foster work-life balance, environmental standards for its suppliers, and zero waste production at its factory. Not only that, but the presence of a strong brand in China is also a source of strength for the BMW Group.

BMW has been working towards improving its supply chain to ensure that their products are more sustainable and environmentally friendly. They include a “Sustainable Supplier” program so that suppliers become responsible for carbon dioxide reduction in their supply chain.

This is so that no additional emissions are produced, and reduced energy consumption allows for the usage of fewer fossil fuels. This is a very beneficial program to BMW because it increases resource efficiency, lowers power consumption on the supply chain, and decreases carbon dioxide emissions.

The company is one of the most successful German car manufacturers in the world today. It can boast of a wide range of highly successful models, including two executive saloons, an SUV, and a small, inexpensive vehicle. The company has also made inroads in terms of sports cars.

SWOT Analysis of BMW

BMW Strengths:

• BMW’s biggest strength is its ability to build high-quality vehicles for a competitive price at a quick turnaround time. They also have the ability to customize vehicles according to consumer needs and desires, and they are the leader in automobile technology which makes their cars safer than most others.
• BMW has a large variety of products, with many of them being very successful, including the 7 series, the 3 series, and the 5 series.
• They have been able to bring a completely new model into the market each year for the past 12 years. This has brought increased sales in every year except for one (2008).
• BMW has very strong customer service capabilities, with it being ranked the highest in this area for the past years.
• They have a strong lineup of high-quality models that are always at, or near, the top in every category they compete in.
• BMW has one of the largest software engineering sdepartments in terms of total employees globally, which puts a large number of resources into developing and maintaining its products.
• BMW is known for having excellent manufacturing capabilities and consistency in product quality, including parts that are used in its products.
• Because of its long heritage, BMW has been able to keep up with modern times. Many of its models have won awards for performance and fuel efficiency.
• The company has been able to keep up with current times by being technologically advanced. It has maintained its traditions and heritage while also giving in to new trends.
• BMW chose to build vehicles powered by renewable energy sources such as electricity and natural gas. These plans demonstrate that the organization is taking steps to prepare for a future in which fuel will become a problem.

BMW Weaknesses:

• BMW also relies on foreign markets due to the high demand for their vehicles.
• They are known for low-quality products, which can be blamed on the high prices that they set for their cars.
• It has been criticized for being too slow to change, even though it is in a constant struggle to keep up with customers’ needs.
• Their prices are very high, and they have not been able to reduce these extremely quickly, which means that they can’t compete with many other car manufacturers.
• They are known for having a reputation for quality, which can be affected by their products. This could be due to the high quantities of money that they spend and the methods they have to do this (such as in-house design departments).
• Manufacturing methods include various waste which is not put to use in other brands of cars.
• Disputes over automobile recall based on technical features or non-Grundfunktionality. Driven regulations are becoming increasingly common, with BMW recalling 1.6 million vehicles due to airbag issues becoming the most recent example. It has an effect on the brand image of a company such as BMW.
• One of BMW’s weaknesses are its outdated supply chain and manufacturing methods, a lack of innovation, and over-reliance on foreign markets. The supply chain is inefficient due to manual labor instead of machines.

BMW Opportunities:

• The car manufacturer expanding into China is a huge opportunity due to the fact that BMW has a positive perception.
• The green movement has increased understanding of the importance of choosing cars that emit less harmful byproducts and contribute to a pollution-free world. Hybrid and hydrogen vehicles are appealing in this situation and are in high demand.
• They have a great market share in China, which can be taken advantage of by increasing the amount of manufacturing there.
• The company has new products coming out that will be successful in the future, which would help increase sales. These include the BMW i3 electric car and the BMW X1 crossover SUV.
• They have exclusive partnerships with other companies such as Intel who is providing technology for electric cars. This can be an opportunity for them to develop more vehicles based on this type of technology.
• The market is always changing, which means that competitors could be affected negatively by this. This would give BMW a chance to increase its market share.
• There are many car manufacturers in China that have not been able to get into the market due to the large number of regulations and restrictions that they have. Even though there is risk involved in entering this market, the opportunities are greater than they could ever be in Europe or North America.
• There are many customers in China who are interested in buying luxury cars, which would make the BMW X1 and the BMW 3 series a great option for them. This is an opportunity that should not be overlooked.

BMW Threats:

1. Low-cost car companies, with their trendy and low-cost offerings, will pose a significant challenge to the company. Mercedes is also a deciding factor in competition with other luxury firms such as Audi.
2. Increasing fuel issues – BMW must be strongly adapted to green fuel and green machinery’s needs to absorb potential customers looking for hybrid vehicle solutions, especially in developed markets.
3. As more buyers become price-conscious, and as the younger generation moves toward e-commerce, it is possible that luxury cars will lose favor in the near future.
4. Fluctuating euro international exchange rates result in a decrease in the value of the euro when exchanged for another currency.
5. The rising cost of raw materials increases the price of BMW vehicles, which are now more costly than rivals’ models due to the high cost of raw materials used.
6. Government regulations would have a direct impact on BMW sales and manufacturing, which could cause them to lose market share and revenue.