Business Strategies Used by BMW Group

Using Porter’s generic strategies, strategic choices of BMW will be identified followed by identifying the key resources and capabilities of BMW in support of its strategic choices over the past five years. After evaluating how BMW’s strategic choices have to lead to the development of sustainable competitive advantage, this report will discuss the extent of BMW’s ability to meet the critical success factors for the automobile sector over the last five years. Prior to conclusion, the criteria of “Suitability, Feasibility, and Acceptability” will be used to further evaluate BMW’s current strategies against the possible future competition in the global market.
brand as automobiles that offers the users a “cutting edge technology” combined with unique designs that makes the cars different from other regular automobiles (Rolls Royce 2010). This strategy enables BMW, MINI, and Rolls Royce demand a premium market price for its masterpiece. As explained by Porter (1985, p. 11), “the fundamental basis of above-average performance in the long-run is a sustainable competitive advantage” for the company. In other words, the ability of the BMW Group to sell its automobiles higher than the average market price enables the company to have a competitive advantage over its competitors. One way or the other, this factor made the company more successful over the past five years.
Using Porter’s generic strategies, it is possible to identify the strategic choices of the BMW Group. Within a broad market scope, BMW Group was able to create a competitive advantage over its competitors because of its differentiation strategies (Porter 1985, p. 11). As part of BMW Group’s differentiation strategy, the company manufactures unique luxury and high-performance automobiles by investing on new technologies like the hybrid- and electric-motors aside from the Efficient Dynamics (BMW Group PressClub Global 2010 b). This particular strategy is clearly a part of the company’s mission statement which states that “In 2020, the BMW Group will be the world’s leading provider of premium products and premium services for individual mobility” (BMW Group PressClub Global 2010 b).