BMW possessed advanced logistics technology.
Very good management ability. The strategic audit is a pointer to this ability.
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Weaknesses.
BMW was falling behind in terms of volume compared to other manufacturers.
Although BMW clearly competes on a generic strategy based on differentiation focus, the company equally cannot ignore the economies of scale building up in certain parts of this maturing industry.
Range extension into the compact market risked compromising brand exclusivity.
Despite this, the company needed greater volume and improved production methods.
BMW was suboptimal in terms of scale and this would continue to weaken its competitive position.
The build quality of BMW cars was not in fact as high as generally perceived.
Lacks of 4WD expertise to enable the company compete in this niche market.
Opportunities.
The liberalisation of the global markets provides an opportunity for quality and reliable automobiles.
The existence of market niches to be exploited especially in 4WD luxury vehicles.
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Threats:.
The major threat was the intense competition and rivalry in the global unattractive automobile industry. -Example Toyota has also successfully entered the luxury car segment occupied by BMW, through its Lexus brand. Development and promotional expenditure necessary to compete on a global basis, has reached the point where even the largest players are collaborating.
Certain companies, including Peugeot, Mercedes and BMW, were becoming isolated: they tended to lack economies of scale and had few collaborative links, Nissan and Toyota alone, have economies of scale without strategic alliances.
Restrictive trade practices in the European market.
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INDUSTRY ANALYSIS.
I. Degree of Competition:.
The degree of competition is very high in all the global markets, especially the American, Asian and European ones. The intense competition and rivalry in the global markets makes the automobile industry unattractive for new entrants.