The launch was success as evidenced by high consumer interest, strong retailer participation and profitability. However, over the past a few years, the total car sales continued to grow but IC sale declined substantially. Situation Analysis Strengths • BMW is a famous premium car manufacturer. BMW cars are well known as combination of great performance, comfort, luxury, and sportiness. • BMW IC program offers customized vehicle.
In 2011, they gained the title of the world's largest automaker by trading the highest number of units in vehicles (General Motors, 2012). This paper discusses business and corporate level strategies of General Motors. It will also discuss the competitive environment of the company and analyze its strategies. The strategies of General Motors will be analyzed on the basis of suitability factors. Business strategy is defined as a course of action of a company that it uses to face competition from its rivals in a given industry.
I believe that investing in a car is the second biggest investment one can ever make next to purchasing a house. It is very important to know what model of vehicle you want, the options you want with the vehicle, and what you are capable of spending. Everyone has a dream car, but something else to consider is whether you need that dream that you are chasing and can you afford it. It is important to do some research on the car you want as far as its safety reports and other consumers’ reviews. Along with your research, shop around and do some comparing against other vehicles that you may possible want to buy, or compare prices between the manufacturer’s suggested retail price and the dealer’s price.
2013 EC3203 Economics of Corporate Strategy Shane Finnegan 109694919 | Word Count excluding references & cover page: 2,049 Word Count excluding references & cover page: 2,049 | Volkswagen Group | | Volkswagen Group | Contents Introduction 1 Describe the boundaries of the firm 2 Identify the sources of competitive advantage achieved by this firm 4 Describe how the firm positions itself 9 Discuss how the corporate parent creates value for its component businesses and ability of the firm to sustain its competitive advantage relative to competitors 11 Bibliography 13 Introduction VW Group was founded in Wolfsburg Germany in 1937 and is the second largest automobile manufacture in the world. VW group is a conglomerate with twelve different brands of automobile in its portfolio. In recent years it has established a worldwide network with manufacturing plants in Europe, America, Asia and Africa. VW Group also provides financial services such as insurance, car finance and banking facilities. In 2012 VW Group had a net profit of €15.4 billion.
Progressive is perhaps the most visible company and it stands out in the competitive auto insurance industry. People become aware of the company and its campaign due to its frequent advertising presence. Selecting auto insurance can be perceived as a complicated and even stressful process since it can be confusing and time-consuming. However, Progressive’s advertising campaign makes it look simple and easy by presenting it like retail shopping that people would feel comfortable with. Progressive provides quotes of its own insurance policy as well as those of its competitors in its advertising campaign.
SWOT These analyze of the internal and external diagnostic of our brand and market aims at adapting the strategy regarding those two contexts. Internal diagnostic Strenghts Weaknesses VAG = largest car manufacturer in EU, 4th in the world Positive growth for Audi France Strong image among customers Pioneer of the “premuim” compact models A3 sportback is the 1st five doors car sporty as a coupé Innovative, modern, attractive Car matches with the new group strategy VAG dropped in sales in many markets Financial difficulties Social conflicts in the last few years External diagnostic Opportunities Threats Growing success of “niche” Manufacturers have to be attentive to cutomers needs “Premium” models should undergo a growth of 50% by 2010 The compact segment should grow by 20 % until 2010 Affected by the overall economic situation = unfavorable to vehicules sale Market has come to maturity General drop in car sales in EU Unfavorable exchange rate for European car markets Increase in raw material cost: gas is the most concrete example Competition between “Premium”models should probably be more and more intense Speed limit Environmental concerns may affect consumer decision making. Marketing strategy When we set up the strategy we have to think of: How are we going to make people know about the new car? How are we going to make them like the new car? How are we going to make them change their habits in order to make them buy the new car?
Implementation of Key Performance Indicators as a Means of Corporate Learning: The Porsche Case Strategic issues: * Declining international sales * To get competitive advantage over other car companies Background of the case: Porsche AG is one of the world’s leading sports car manufacturers and was facing immense competition from its rivals in the same industry. The company executives were working hard to find ways to stay competitive and successful in the industry. They realized that the huge amount of data that they have with them through the network of dealers can be of great use. The company decided to convert these data into profits by implementing an innovative tool which would help in providing sufficient knowledge and learning. Company decided to use the term Porsche Key Performance Indicators (KPI) instead of the original name “Balanced Scorecard”, since the company tried the tool at a different department before and failed to introduce.
Chrysler and BMW Joint Venture Synopsis: This joint venture between two of the most popular car companies came about due to competition and a risky decision to increase sales while decreasing cost. BMW had the name brand but wanted to get into the market of cheaper and more effective engines. Chrysler was hurting due to poor decisions and leadership breakdown from the past years and were seeing large negative results due to it. The two companies both came up with plans for their new team “Tritec”, however Chrysler ideas and presentations were advance and therefore used. The company picked a young ambitions man named Jack Smith the head the team designing the new engine block.
The initiative of Advertisements is to portray their brand images, products or services in the best way to draw immediate attention. However, as one of the most important cultural factors, advertisement takes the role to model and reflect the value of our daily life (Williamson, 1978). This BMW advertisement is this sort of effective advertisements. Semiotic analysis is applied to this advertisement, which signifies something with a meaning within a culture. The advertisement is for BMW’s Z4, which was firstly released in 2003.
TPS is known for efficiency and ability to minimize waste, but who exactly will be able to apply this system to their own business and mimic such success as Toyota does is the key. The first aspect a company or business needs to look at to see if the Toyota Production System can work for them is the to understand the goals of TPS. According to Toyota’s website, the Toyota Production System (TPS) represents a “people and customer-oriented philosophy” (Toyota.com). The first goal is to maximize company profit by reducing inconsistencies, overburdens, and waste. Followed by delivering to customer the highest possible quality products and customer service, at the lowest possible price, in the shortest possible time.