Bmw Case Study

1498 words - 6 pages

BMW, renowned as one of the world leaders in the production of precision automobiles is not a company that has rested on the laurels of it products nor has the company allowed its success to hamper efforts to expand and remain a top competitor in the global market today. Begun as Rapp Motoren Werke, in Munich Germany, as an airplane engine manufacturer, in 1916 by Karl Friedrich Rapp, a well know engineer. (Rudelius, 2011) Nearby, Gustav Otto, set up his own shop, Gustav Flugmaschinefabrik, building small aircraft. Due to Rapp’s manufacturing problems, his company secured a contract with Austro-Daimler in order to fill orders that they could not keep up with; ultimately, Austro-Daimler ...view middle of the document...

Although known today mostly for its automobiles, BMW has a long tradition of motorcycles, manufacturing such amazing bikes that records set in 1937 stayed on the record books for close to 2 decades. BMW introduced the 328 in 1936; this was the most popular car of its time and remains BMW’s most renowned pre-World War 2 sports car. After the World War 2 BMW was in ruins, it factories were either damaged or destroyed and due to it manufacture of engines and rockets during the War, production was forbidden for three years. Upon the return to production, in 1951, BMW did not meet up to its previous standards of excellence. Struggling to gain a financial foothold, BMW introduced various cars over the next few years, including the Isetta 250, a very successful mini-car. This car was the first time BMW keeps a car on the product life cycle of 7 years. In 1956, BMW launched the 507, which remains the symbol of BMW’s struggle and the triumph of the company after the end of the World War 2. In 1962, BMW began producing the 1500, another success, this also helped to pull BMW out of the down swing after the World War 2. In 1972, the 5 series was launched, followed by the 3 series in 1975 and by the 7 series and 2 series in 1977. These cars, named for their product line and the engine size, were easily identified and people understand these designations easily across the world. BMW continues to manufacture the 1, 2,3,5,7 series, M series, Z series, and X series cars. (Popescu, 2000)

BMW, has been highly successful at not only maintaining its status as one of the largest car manufacturers in the world, but has also, through careful planning, has remained one of the leading makers of premium vehicles today. BMW strives to produce a range of products that will capture new buyers, as well as keep the loyalty of former buyers. Seeking to continue the past record of increasing sales to such groups as women, African Americans and Hispanics BMW continues to expand its market share through the introduction of new products. In an article in the Wall Street Journal, Vanessa Fuhmans, reports, “BMW AG unveiled a new sub-brand -- BMW i -- under which it plans to market its future line of electric cars as well as some driving-information and other transportation-related services.
The new sub-brand is part of the German luxury-car maker's ambitious plans to reposition its high-powered marquee in a still nascent market. With the BMW i, the company aims to branch out into an area less associated with high-performance gasoline and diesel engines and more with the broader field of urban mobility. (Fuhman, 2011) This is a prime example of how BMW continues the traditions of seeing what people want and making it what they need. These new products appeal to both the conservative buyer who wants to “do their part” in saving fuel and being greener, as well as the consumer who desires the status of driving The Ultimate Driving Machine. The branding of BMW is legendary....

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