Hi, I need help with essay on Accounting(Managerial control)301: CASE STUDY. Paper must be at least 2250 words. Please, no plagiarized work!
The company battle some tough times in its early days, but eventually it found a way to become a global icon by utilizing a branding strategy with the slogan “The perfect vehicle.” By the end of the 20th century the automobile industry as a whole reached its maturity stage and competition was intense. As the 21st came up us BMW had survived and was doing quite well in terms of profitability, but the overall market share of the company was low. This report analyses the firm BMW group and its situation and possibilities in the 21st century. Some of the analyses provided in this report include SWOT analysis, Porter Five Forces and identification of problem and potential solutions.
BMW has built a reputation of quality and excellence for over 90 years. The German based firm after the 2nd half of the 20th century concentrated creating vehicles for the luxury car market. The capitalized on this niche marketplace and build a reputation that allowed them to earn above average profits. A BMW is car that is visualized by the car owners as a premium car than even though is in the luxury category it is an item that can be afforded by the middle to upper middle class drivers. The company was able to become successful with a product line of a few models, thus they could keep better control of quality. The company concentrated in a niche segment of the automobile industry which allowed the firm to keep its volume low. In low volumes the firm was able to keep a tight control of the entire supply chain including having the majority of their dealerships wholly owned. Due to their strategy the firm offered better warranties offerings than the industry in terms of years and mileage considerations. The advantages the company enjoys are based on the implementation of brand value market which means they are applying a long range competitive strategy (Kotler, 2002)
As the 20th century came upon us the auto industry reached the maturity stage. BMW realized that