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A Strategic Plan for Launching BMW 3 Series in USA and UK

Introduction

The term international business management strategy has its own significance in the techno-savvy world of today. It is the process of establishing the empire of business by a series of strategies viz. executing the business concept, pricing, promotion, and distribution of ideas, goods, services, organizations, and events to create and maintain relationships that will satisfy individual and organizational objectives. We can analyse the situation by strategically approach to the launch of BMW 3 series vehicles. We know Product Diversification and Customer Care are strategic tools employed by present day business to efficiently integrate suppliers, manufacturers, warehouses, and customers so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time to cut down costs while satisfying service-level requirements .In the past, Product Diversification and Customer Care gained momentum and received due attention from practitioners and researchers. It has become present day managerial competitive weapon for improving performance in the field.

 Background

International strategic management also results in more exports to and imports from other countries, often called offshore sales and imports. Offshore sales and purchases by U.S. manu­facturers have increased to 14 percent of total sales and 10 percent of total pur­chases. The volume of corporate voice, data, and teleconferencing traffic between countries is growing at an annual rate of 15 to 20 percent—about double the corpo­rate domestic rate—indicating how businesses are increasingly bridging national boundaries.

International strategic management is also widespread area today. Banking, law, information services, airlines, education, consulting, and restaurant services-are particularly active globally. Here we can see the automobile giant is going to launch their latest 3 series vehicles in USA and in UK. Born in Germany, BMW was always a passion to the automobile lovers from the beginning itself. Today, we can see the automobile fan is still deployed behind the brand name simply because of its elegant style, beauty and power. Philip Sadler –(2003)

Aim of the study

BMW is the automobile giant having its presence in every part of the world. The product diversification always enables the company the market leader of the sector without any challenges. Here BMW wants to put their business mark in USA and UK by its latest version BMW 3 series as a part of diversification in the business.

The plan

BMW intends to ensure its monopoly across the whole world by their corporate strategic management. So as a first and prime step they want to organise a good campaign to make the event more noticeable there in the new country. They wish to make it reorganised their marketing presence within a short time period.

BMW

Based in Germany, the BMW (Bayerische Motoren Werke, AG) chain stretches across the globe. Automobile and engine manufacturing company started their chase in 1916. With profit margins so small, they were continually looking for ways to reduce costs and utilize facilities efficiently in the initial period.. Now the automobile giant has its own mark in the global automobile scenario.

 

Country
 Make
 Cars (2006)
 Cars (2008)
 Models
 
Germany
 BMW
 905,057
 901,898
 Others
 
United Kingdom
 Mini
 187,454
 235,019
 All Minis
 
  Rolls-Royce
 67
 1,417
 All Rolls-Royce
 
Austria
 BMW
 114,306
 82,863
 BMW X3
 
USA
 BMW
 105,172
 170,741
 BMW X5, X6
 
South Africa
 BMW
 54,782
 47,980
 BMW
 
Total
   1,366,838
 1,439,918
  

Presence in the UK

Unlike all other countries, UK has become the most number of users of the brand. The figure 187,454 stretches out a great deal from all others. It is in fact shows the appreciation and recognition of the brand among the public. But by using the innovative models the company is very effectively sustain the leadership in the sector.

BMW in the USA

Even if the figures are the average, the brand has ts own influence in USA market. The figure 105172 shows its presence is one among the first five in the automobile industry. In fact BMW is accelerating to come to the driver’s seat within a short span of time.

A clear but brief background of the two markets, with a justification of their selection

BMW, however, recently decided to focus its competitive positioning on enhancing the consumer's feel satisfaction experience by its latest 3 series.  Their target market is the upscale families and business men, who have the following shopping priorities:

1.   Luxurious. The facility is in fact a mark of self esteem and proud, with these items well displayed and good access.

2.  Availability. The selection of items is broad, and the customer has several choices for any one item.

3.   Timely Service. The show room is open at convenient times, and customers do not have to wait in long checkout lines.

The Need for Strategic Planning

Strategies of one’s own will not make any firm fast growth oriented. Organisation structure and systems also play significant roles in turning a strategy successful Philip Sadler –(2003)

. In fact, that is the pivotal part of marketing aspect. For instance, in a rigid, bureaucratic organisation where everything is done based on written orders, strategies sensitive to time will not work. Control systems should also be tuned to implement the strategy. For instance, the success and growth of a restaurant operating in a highly competitive environment depends on the quality of items, lead time and attitude and behaviour towards customers, often more than on price. In such places, ordering and delivering systems have to be closely monitored to ensure competitiveness and resultant growth opportunities, and to have a sustainable growth.

Connor, Dick & Davidson, Jeffrey(1990).

How does BMW influence the potential customers in the market?                 

As in management, these strategies are formulated and implemented by BMW, which want to grow in the entirely different market. Such firms have to maintain sustainable competitive advantage by delivering superior value to the customer. But as a genuine consultant do have my own suggestions. Although it is difficult for any firm to be an ideal growth business, it is worth attempting to reach that ideal. Some of the important characteristics of an ideal growth business are given below.

1.      A near monopoly that can dominate a market because of patents

2.      A business where the rate of growth in profits is far higher than the rate of growth in sales

3.      And the business which can grow independently in the economic cycle

4.      A business that has a constantly high rate of inquiries and new repeated
orders

5.      A business that is dependent on management talent.

Peter Block says money value has to be there when a consultant deal with such a problem.

Positioning map

 

As BMW has its own mark in both UK and in the USA, company need not struggle to formulate innovative strategies, but they have to convince the customers their unique perceived quality and price positioning. As BMW is high end quality oriented product, there are privileged retailers and customers to take it this new 3 series as their own product. Unlike the main streamers, the product 3 series top level quality product has its unique comfort, luxury which provides the customers a kind of self esteem.

The international business strategies for the two countries- the USA and the UK

The major challenge before the firm is to align the store with the new competitive priorities established for the chain. An area he has identified as a particular concern is the scheduling of consumers. Maintaining a high level of performance requires more stocking personnel to keep the stock orderly on the shelves and the aisles clear and swept. To make a profit in a low-margin business environment, he has to control costs so that prices remain competitive. The trick is to develop a work schedule for the per­sonnel that satisfies competitive requirements, conforms to a reasonable set of work policies, and utilizes the person-net efficiently to minimize labour costs. Charles W. L. Hill  ,( 2010). Unlike all other countries, UK has become the most number of users of the brand. The figure 187,454 stretches out a great deal from all others. It is in fact shows the appreciation and recognition of the brand among the public. As far as the USA is concerned, even if the figures of the existing BMW users are the average, the brand has its own influence in market. The figure 105172 shows its presence is one among the first five in the automobile industry. In fact BMW is accelerating to come to the driver’s seat within a short span of time. By using the innovative models the company is very effectively sustain the leadership in the sector and moreover the new product does not have any major challenge from any other opponents or other similar factors as the strategy can cover them with the present market identity in both these countries.

 

SWOPT ANALYSIS

In BMW, we have seen, and as we would like to see it in its operations more conspicuously over the time. It seems that it has not achieved a great deal. Starting with an excellent strategy, its turnover is a performance tool par excellence. However, it appears that much more can be achieved with the kind of resources which BMW has. The following factors are evident when we analyse the firm with a SWOPT analysis.(Strength, Weakness, Opportunities, Problems and Threats) analysis and as comments are as under:

Strengths

An excellent team of professionals

The very name BMW signifies the impersonality attached to any single individual's name or family. Scope, thus, exists to work for the company rather than to glorify the name of a family.  

A manufacturing base in terms of office space, equipment and machinery.

A well nourished existing customer base of the company.

Good contacts with business world. Self generated export business and hence firsthand knowledge of the buyers and the markets. A very close and harmonious social relationship among partners is seen. It is an indicative of a similar social status of all the partners.

Presence of both domestic and export markets in   BMW Market mix enables knowledge of both the markets, but it can be turn to a plus by looking back on the commitment they have shown in the past. 

Product associated has a tremendous growth potential, both in international and domestic markets.

Weakness

 Size: BMW has to grow big and utilise fully the entrepreneurial talents available to it. The present size is not optimum and this is leading to under-utilisation of the time of the directors. The whole Woking of it has to be reorganized to utilise the 'human resources’ available to it.

Product Portfolio: Though so far has been able to generate sales from only
two lines, but the lines have very narrow product-market scope and could prove vulnerable in the long term. A balanced portfolio could be one which would enable BMW to generate sufficient funds to achieve its growth and the present objectives.  Lack of 'systems' appears to be another weakness of BMW. Today, whatever information (mainly financial) is generated appears to be an end in itself.

LIMITATIONS:

The product launch relies only on a target group and hence the area where the company is not concentrate or to the remote area will be out of focus as a result of boost in the strategy management can happen. There should be a market research well before the launch which can emphasise the region where the strategies are concentrated more and that could be conducted in various levels or areas. And also it would have been better for the study if it could be conducted in a wide level.

Conclusion

We can understand the systematic approach of the company will make a mark in the market from the very beginning itself. We know Product Diversification and Customer Care are strategic tools employed by present day business to efficiently integrate suppliers, manufacturers, warehouses, and customers so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time to cut down costs while satisfying service-level requirements .The company BMW can execute the strategies well, and they will become a top notch firm within a short span of time there in both locations.

 

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