SWOT Analysis of BMW – BMW SWOT Analysis [Explained]

SWOT Analysis of BMW focuses on Strength, Weaknesses, Opportunities, and Threats. Strengths and Weaknesses are internal factors and Opportunities and Threats are external factors.

SWOT Analysis provides a well-tested management methodology that enables the BMW brand in comparison with competitors and industry to assess its business performance.

swot analysis of bmw

BMW is the most stylish car in the world, known for its efficiency and design. The brand is known to be adaptable and has cars that are in the ultra-premium segment as well as cars which are pretty much affordable as far as luxury cars go. Here’s a SWOT study of BMW.

Strengths in the SWOT Analysis of BMW – BMW SWOT Analysis

  • BMW Company: Group consists of three brands, namely BMW, MINI & Rolls Royce, all of those are in the higher end of the market. BMW is not only a car manufacturer, and also one of the world’s leading manufacturers of motorcycles, aircraft engines, and marine engines.
  • Technology & innovative advancement: continuous process development & technology advances in R&D has made it a clear winner in the automotive premium category. The Brand is known for its consistency, reliability, and efficient customer service support. And more relevantly, because of the lovely nature of its range of vehicles.
  • Highly regarded brand in the automotive industry: with its creative promotional strategies, the company has achieved in positioning it as a luxury brand resulting in High TOMA (Top of Mind Sensitivity).
  • Workforce: A group of more than 100,000 highly trained workers who work continuously in more than 100 countries to differentiate BMW’s service from their competitors has been set up.
  • Product portfolio: BMW has extended product portfolios from SUVs to Luxury Sedans to sports cars. The product range and depth of the product are excellent in terms of quality and design.
  • Asian markets: there is very little progress to be made in mature and developing economies. By starting early in developing economies, BMW has made a wise move. BMW is the top-selling luxury vehicle in countries like China and India.
  • Plans for hybrid vehicles: BMW decided to develop models that run on renewable fuels such as electricity and natural gas. These plans show that the company is making inroads to prepare for the future, where fuel could become an issue.
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Weaknesses in the SWOT Analysis of BMW – BMW SWOT Analysis

  • Cars recalled: Controversies related to the recall of cars on the grounds of any technological functionality or non-Grundfunctionality. Driven regulations are becoming very popular, the most recent of which is BMW recalling 1.6 million cars due to airbag issues. It affects the brand value of a brand like BMW.
  • Strategic Partnerships: BMW has very few strategic partnerships. This gives the rivals an advantage over BMW. BMW is capable of strong R&D, but the execution of the investigated vehicles is dependent on a strategic partnership with the numerous companies that BMW lacks.
  • Younger generation less aware of the brand – the younger generation is more likely to spend money on electronic appliances than to save money on luxury vehicles.
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Opportunities in the SWOT Analysis of BMW – BMW SWOT Analysis

  • Product Portfolio: by growing their product range and launching new series in various segments, they will boost their revenues as there will be more options for consumers under the same brand. Of course, this is the biggest opportunity for any brand on the market.
  • Strategic Alliances: this can prove to be a good strategy for BMW. BMW will use the advanced capabilities of other companies to distinguish their offerings.
  • Changing lifestyle & consumer groups: with a changing customer lifestyle and more and more inclination towards premium brands, it is certain that this segment is growing fast. In developed countries, the growth rate is as high as 33% YY.
  • Business expansion: the entry of new markets would help the company boost its targeted sales. This is the only way to make sure that developing economies stay at the top of the revenue chain.

Threats in the SWOT Analysis of BMW – BMW SWOT Analysis

  • Competition: Low-cost car companies with their trendy and cheap offerings would be a major challenge to the business. Mercedes is also a determining factor in rivalry from other firms in the luxury market, such as Audi.
  • Price factor: even more consumers are becoming price-conscious, and with the younger generation on the e-purchase, there is a possibility that luxury vehicles will stop obtaining as much attention in the near future.
  • Growing fuel problems – BMW needs to be strongly adapted to the needs of green fuel and green machinery so it can absorb potential customers who are looking for hybrid vehicle solutions, especially in developed markets.
  • Government Norms will directly influence the sales and manufacturing of BMW.
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"SWOT Analysis of BMW – BMW SWOT Analysis [Explained]." Projects4MBA [Online]. Available: https://www.projects4mba.com/swot-analysis-of-bmw/4821/. [Accessed: December 3, 2020]

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