Bmw What Is in What Is Out of Control

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Bayerische Motoren Werke In this case, is assessed what is in control and what is out of control for BMW on the US market between around 1986 and 1992. Whit time, performance of BMW improved continually around the world while its position in the US market had not. North American sales decline since 1987. To avoid this issue, Gerlinger was appointed president of North America in 1989. The press newspaper is free and can say what they want as the public opinion, that’s why BMW had to change, Gerlinger decided to implement a reinforcement of support marketing programs. BMW had got competitors; its best enemy is Mercedes-Benz located 220 kilometers from Bayerische headquarter. All car firms are linked thanks to joint ventures, alliances… All except BMW which want to be an independent company and mostly focus on automobiles. BM wants to be the best, not the biggest, this is a quality prove. In Germany, The brand had 800 dealers whom sold BMW exclusively whereas in USA, around 100 dealers under 354 sold only BMW. The director of Marketing Planning in Munich pointed out that you must have a good market position in Japan, US, and Europe. If one of these markets is lost, you’ll eventually lose all three. It was happening in the US market with more than 50% sales lost in 5 years. In 1991 the total automobiles US market declined by 24%, the luxury/performance segment as well. Two main reasons in 1987, first, the Tax Reform Act’s impact which made luxury cars more expensive; second, the stock market crash. Potential buyers were not as affluent anymore. After came a luxury tax for any sales exceeding $30.000 and doubling of the gas guzzler tax. The behavior of potential buyers changed, the conspicuous consumption of the early 80’s gave way to more value-oriented purchasing Despite all of what appears above, 3 main competitors entered in this segment: Honda, Nissan

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