Bmw Economic Business Strategy

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BMW Economic Business Strategy Mark Distor Eco 415 January 25, 2012 Larry Jakows When most people think about BMW, they perceive German automobiles that are luxurious and top of the line vehicles. Very little people know that BMW was started as a manufacturer of aircraft engines. Not until 1916, Franz-Josef Popp transformed Bavarian Aircraft Works into “Bayerische Motoren Werke.” The BMW logo is based on the circular design of an aircraft propeller combined with the blue and white colors of the flag of Bavaria (BMW Drives, 2012). BMW shifted its production to motorcycles in 1923 after it was forced to cease aircraft engine production. The first BMW automobile was produced in 1928. While most car assembly has been taken over by robots or low-wage workers, BMW maintains a skilled German labor force. Today, BMW is a leader in the premium luxury vehicle industry and is one of Germany’s largest and most successful companies. Topic 1: Achieving Competitive Advantage * How does your firm create value to lead to competitive advantage?
 BMW is the world leader in selling premium vehicles. BMW focuses their strategy on leading in the premium sector of the automobile industry. When people think about BMW, they instantly think of high-end luxurious premium automobiles. This is because BMW is committed to producing only the most luxurious and premium vehicles in the market. According to BMW CEO Norbert Reithofer, BMW wants to be the leading provider of premium products and premium services for individual mobility. This company’s performance is reflected by their share price. In 2009, the price of an ordinary share in BMW rose by 47 percent. In 2010, it increased by 85 percent, making it the best individual performer in the DAX (BMW Group, 2011). The numbers have proven that BMW ordinary share is a great long-term investment that will pay out in the

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