Bayerische Motoren Werke (BMW)

Presented by:

Ayonni, Dalvir, Deia, Moses & Nnenna

BMW History & Background

⦿March 1916 – Merger

⦿Pre-war

⦿During the war

⦿Post-war

⦿Acquisitions

BMW Group’s Segments

AUTOMOTIVEMOTORCYCLEFINANCIAL SERVICES

BMW Group’s Brand Portfolio

BMW Group’s subsidiaries

Value-Chain Analysis

Global Production Network

BMW Group locations worldwide

BMW Group locations in Europe

BMW Production Plants

BMW JOINT VENTURES

BMW Brilliance Automotive Plants

Shenyang, China⦿Operated with Brilliance China Automotive

Holding Limited⦿Exclusive for Chinese market only⦿Plants in Dadong and Tiexi⦿Produce BMW 5 & 3 series, X1 and Zinoro ⦿Engines produced for both plants

SGL Automotive Carbon Fibres

⦿Joint venture with SGL Group⦿Located in Moses Lake, Washington⦿World’s largest Carbon fibre factory⦿9,000 tons/year⦿Used in BMWi 8 electric car

BMW Partner Plants

Why use partner plants?1.Tap/ expand into new

markets2.Avoid high duties3.Provide competitive

pricing4.Be a “local player”

Where are they located?

1.Kaliningrad, RUSSIA2. Cairo, EGYPT3.Jakarta, INDONESIA4.Kulim, MALASIA5.Manaus, BRASIL

BMW Purchasing Network

BMW Distribution Network

Number of Authorised Dealerships:⦿BMW 3,400⦿MINI 1,580⦿Rolls Royce 140

Other Distribution Channels:⦿BMW branches and subsidiaries⦿Independent importers⦿Internet

BMW’s 2016 Key Automobile Markets

Business Network⦿Strategic partnerships through products & services

provided by Alphabet such as

⦿Financing & leasing

⦿Fleet Management & Advanced mobility solutions

⦿Joint venture with TOYOTA

⦿IBM headquarters of IoT in Munich, Germany

Automotive Industry

Comparison between BMW Group & Daimler AG

CSR

-As per BMW website “Corporate Giving”:

BMW group committed over $36 million.

⦿ 47% to education

⦿ 35% to the community

⦿ 18% to the arts

Why not BMW?(1) High cost of production materials

= High cost of manufacturing = High cost of handling = high cost of maintenance

(2) Highly priced due to initial factors above

(3) Cost factors in (1) above is transferred to consumers

(4) Unable to hold a strong market share among the top 10 brands for more than 10

years.

(5) Survey in 2016 shows that BMW is not one of the most reliable brand in terms of the reported number of faults in the United Kingdom -www.express.co.uk

(6) BMW ranks 27th among world brand in reliability (Hard fact data collection) -www.express.co.uk

(7) BMW ranks 4th among world brand in reliability (perceived data collection) -www.express.co.uk

Why not BMW ?(Continuation)

(8) Low incentives for final consumersAutomakers use incentives to entice customers

Industry PracticesAutomakers provide a host of incentives:

● Cash rebates

● Lower interest rates

● Loyalty programs

● Subvented leasesTable showing Top five Automobile Industry frontliners on incentives to consumers Source: Marketrealist.com (Data collected in the United States of America)

Why not BMW ?

(9)BMW Ranks 29th in “Miles/Kilometres to worthless” among industry pairs.

Miles to worthless”: Bar chart showing how BMW compares to top 10 Automobile Brands Source of Data : AutoRemarketing.com

Source of Chart: Group BMW, University of Lethbridge, Canada