Assignment 3- Unit 5
international business
9.4.24
Assignment 3
Global strategies and resources used
by BMW
, This report is written to gain an understanding on why BMW has been a phenomenal
success from a global perspective. This report will discuss background information of BMW,
BMW portfolio range, different types of strategies used by BMW, product reengineering,
strategies BMW uses to operate internationally and resource considerations.
Background information of BMW
BMW was founded on 7th March 1916 in Munich Germany. It started off as a company
building plane engines but gradually started building cars. BMW headquarters is in the am
risesenfled arena in Munich Germany. As of 2022, BMW has a total number of 149,475
employees a 25.71% increase from 2021. There are other providers to BMWs supply chain
for example some of BMWs car components are manufactured by other providers and not
BMW. The company structure of BMW is matrix due to it being a more complex
organisation with many interdependent parts so it can't be hierarchal or a flat structure due
to its complexity. BMW is a parent company as it owns other companies. The subsidiaries it
owns is Mini and Rolls Royce which is an advantage as it can allow for diversification and
increased market reach in a business. BMW also benefits from an economy of a scaling
scope due to them sharing component parts. For example, Rolls Royce has been using
BMWs engines and uses the same entertainment system as BMW. BMW has 30
manufacturing facilities and representatives in 140 countries.
BMW portfolio range
BMW has many joint partnerships. It has a long-term partnership with the m division to
produce several types of cars such as the sport cars. BMW also has a partnership with
Toyota as they collaborate on projects such as the creation of fuel and hybrid cell
technologies for their cars. In addition to this, BMW has a joint partnership with brilliance
auto group in China. They both manufacture BMW vehicles mainly for the Chinese market
to meet their specific needs. BMW has joint ventures with Daimler AG- a parent company of
Mercedes bens in which they develop a vast range of driving technologies. All these joint
ventures and partnerships support BMW in staying market lead and customers first choice
for automotive technology. BMW licenses its cars designs, trademarks and technology
through different agreements which allow other companies to use BMWs design in their
own services and products. This allows BMW to share their innovations further in the car
industry. There are many dealerships around the world that independently operated and
owned but they have a franchise agreement with BMW. This agreement means they can
service and sell BMW cars leading to them representing BMW. This results in BMW
providing customers with consistent brand experience.
Different types of strategies BMW uses
BMW uses different strategies to operate internationally including partnerships, joint
ventures, licensing and franchising. BMW has many partnerships including partnerships with
Toyota, intel and Mobileye. Entering these partnerships has allowed BMW to share its
resources with its partners, collaborate on research and development and access modern
technologies. This allows BMW to create innovative products and services due to it
combining its expertise with its partners. For example, BMWs partnership with Toyota
international business
9.4.24
Assignment 3
Global strategies and resources used
by BMW
, This report is written to gain an understanding on why BMW has been a phenomenal
success from a global perspective. This report will discuss background information of BMW,
BMW portfolio range, different types of strategies used by BMW, product reengineering,
strategies BMW uses to operate internationally and resource considerations.
Background information of BMW
BMW was founded on 7th March 1916 in Munich Germany. It started off as a company
building plane engines but gradually started building cars. BMW headquarters is in the am
risesenfled arena in Munich Germany. As of 2022, BMW has a total number of 149,475
employees a 25.71% increase from 2021. There are other providers to BMWs supply chain
for example some of BMWs car components are manufactured by other providers and not
BMW. The company structure of BMW is matrix due to it being a more complex
organisation with many interdependent parts so it can't be hierarchal or a flat structure due
to its complexity. BMW is a parent company as it owns other companies. The subsidiaries it
owns is Mini and Rolls Royce which is an advantage as it can allow for diversification and
increased market reach in a business. BMW also benefits from an economy of a scaling
scope due to them sharing component parts. For example, Rolls Royce has been using
BMWs engines and uses the same entertainment system as BMW. BMW has 30
manufacturing facilities and representatives in 140 countries.
BMW portfolio range
BMW has many joint partnerships. It has a long-term partnership with the m division to
produce several types of cars such as the sport cars. BMW also has a partnership with
Toyota as they collaborate on projects such as the creation of fuel and hybrid cell
technologies for their cars. In addition to this, BMW has a joint partnership with brilliance
auto group in China. They both manufacture BMW vehicles mainly for the Chinese market
to meet their specific needs. BMW has joint ventures with Daimler AG- a parent company of
Mercedes bens in which they develop a vast range of driving technologies. All these joint
ventures and partnerships support BMW in staying market lead and customers first choice
for automotive technology. BMW licenses its cars designs, trademarks and technology
through different agreements which allow other companies to use BMWs design in their
own services and products. This allows BMW to share their innovations further in the car
industry. There are many dealerships around the world that independently operated and
owned but they have a franchise agreement with BMW. This agreement means they can
service and sell BMW cars leading to them representing BMW. This results in BMW
providing customers with consistent brand experience.
Different types of strategies BMW uses
BMW uses different strategies to operate internationally including partnerships, joint
ventures, licensing and franchising. BMW has many partnerships including partnerships with
Toyota, intel and Mobileye. Entering these partnerships has allowed BMW to share its
resources with its partners, collaborate on research and development and access modern
technologies. This allows BMW to create innovative products and services due to it
combining its expertise with its partners. For example, BMWs partnership with Toyota
