This report is based on strategies which are utilized by the organization for creating long-term sustainable growth with competitive advantage. In this report, researcher has given its consideration upon UK automobile sector, especially BMW (British Motor Works) was taken into account.
Moreover, it will assist to understand internal & external strategy of BMW through critical analysis based on attractiveness & distinctness in automobile industry to suggest suitable strategy for the organization. For giving a deep understanding of corporate strategy & business strategy of BMW, Ansoff’s corporate strategy & Michael Porter competitive advantage strategy was taken into the account by the researcher as these strategies are most effective strategies in the case of BMW.
These strategies will assist to understand the market competencies & to measure the attractiveness of BMW which gives the company distinctive recognition in the automobile industry
Table of Contents
Executive Summary
INTRODUCTION
AIM & OBJECTIVE
CORPORATE STRATEGY
Market Penetration
Market Development
Product Development
Diversification
CHOICE OF CORPORATE STRATEGY: MARKET PENETRATION
BUSINESS STRATEGY
Michael Porter’s Competitive Strategy
COST LEADERSHIP
DIFFERENTIATION
Focus or niche strategies
Cost-focus strategy
Differentiation-focus strategy
CHOICE OF BUSINESS STRATEGY: COST LEADERSHIP
EVALUATION OF THE STRATEGY AND RECOMMENDATION
SUITABILITY
ACCESSIBILITY
FEASIBILITY
RECOMMENDATIONS CRITERIA
REFERENCES
Objectives and Core Themes
This report aims to conduct a critical analysis of BMW's strategic framework within the UK automobile industry to suggest suitable corporate and business strategies that foster long-term sustainable growth and competitive advantage.
- Application of the Ansoff Corporate Growth Strategy Matrix.
- Evaluation of Michael Porter’s Generic Competitive Strategies.
- Analysis of market penetration and cost leadership effectiveness.
- Assessment of strategic feasibility, suitability, and accessibility for BMW.
Excerpt from the Book
CHOICE OF CORPORATE STRATEGY: MARKET PENETRATION
Johnson, et.al (2013) sited that entering in a new industry or targeting new product is more risky as compare to dealing in the same industry due to uncertainty. Ghalandari (2012) suggested that market penetration strategy is least risky for BMW as compare to other corporate strategies as it assists to affect the overall direction of the organization to establish the future in the working environment with existing product. It will assist BMW in dealing in the concept of simply maintaining market share by leveraging existing resources & the capabilities.
According to Morrison (1992), through market penetration strategy BMW will be able to focus on the selling of products or services in the existing markets in a manner to gain higher market share to excel in the same industry with same product. By applying this strategy, BMW will be able to persuade the current customers to buy more and also will be able to influence the new customers to start buying its offerings (Porter & Heppelmann, 2014). Moreover, this strategy will assist BMW to convert the customers of their competitors.
Chapter Summary
INTRODUCTION: Provides an overview of the importance of corporate and business-level strategies in the highly competitive UK automobile industry.
AIM & OBJECTIVE: Defines the goal of evaluating and selecting appropriate strategic models for BMW's continued market success.
CORPORATE STRATEGY: Discusses the scope of the organization using the Igor Ansoff growth strategy matrix to evaluate product-market combinations.
CHOICE OF CORPORATE STRATEGY: MARKET PENETRATION: Argues that market penetration is the least risky and most effective strategy for BMW to leverage current resources.
BUSINESS STRATEGY: Explores competitive strategies using the framework proposed by Michael Porter.
CHOICE OF BUSINESS STRATEGY: COST LEADERSHIP: Justifies the selection of cost leadership as the primary business strategy to gain an edge in a price-sensitive market.
EVALUATION OF THE STRATEGY AND RECOMMENDATION: Assesses the suitability, accessibility, and feasibility of the chosen strategies within the existing market.
RECOMMENDATIONS CRITERIA: Concludes that combining market penetration and cost leadership provides the best pathway for BMW’s long-term sustainability.
Keywords
BMW, Strategic Management, Corporate Strategy, Business Strategy, Market Penetration, Cost Leadership, Automobile Industry, Competitive Advantage, Ansoff Matrix, Porter's Generic Strategies, Market Share, Sustainability, Product Development, UK Automotive Sector, Price Sensitivity.
Frequently Asked Questions
What is the primary focus of this case study?
This report focuses on analyzing the strategic management approaches utilized by BMW within the UK automobile industry to achieve long-term growth and competitive advantage.
What are the central thematic pillars of the report?
The report centers on two main areas: corporate-level growth strategies using the Ansoff Matrix and business-level competitive strategies based on Michael Porter's models.
What is the core research objective?
The objective is to evaluate different strategic models and suggest a combination of corporate and business strategies that best suit BMW's current competitive environment.
Which scientific methodologies are applied?
The researcher applies the Ansoff Corporate Growth Strategy Matrix and Michael Porter's Generic Competitive Strategies to conduct a critical analysis of BMW's market position.
What topics are discussed in the main body?
The main body covers the theoretical foundations of corporate and business strategy, the justification for selecting market penetration and cost leadership, and an evaluation of their practical feasibility.
Which keywords define this work?
The study is characterized by terms such as strategic management, market penetration, cost leadership, competitive advantage, and the automotive industry.
Why is market penetration considered the best strategy for BMW in this context?
According to the report, market penetration is the least risky strategy because it allows the company to leverage existing resources and capabilities rather than venturing into uncertain, new market segments.
How does cost leadership impact BMW's competitiveness?
By achieving the lowest cost of operation, BMW can offer more competitive pricing to price-sensitive UK customers, thereby increasing market share and retaining customers who might otherwise switch brands.
What are the identified potential risks of these strategies?
The report notes that market saturation could limit the effectiveness of penetration, and aggressive cost-cutting risks compromising product quality, which would negatively impact the brand.
- Quote paper
- Kiran Kumar (Author), 2016, Strategic Management On BMW, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/338411
