BMW Acquisition of the Rover Group

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             II. Dominant Economic Features:.
             The global economy was in recession and the market for motor vehicles was declining.
             III. Drivers of change:.
             1. Economies of scale - In order to survive in the global market, automobile companies will require economies of scale. Small companies were unlikely to make a mark. BMW and Rover were considered to be too small to survive as global manufacturers independently. This also infers cost leadership in standard models.
             2. Technological innovation. Continuous innovation for the improvement of vehicles and new vehicle design is a major factor for growth and profitability in the automobile industry. The industry is market driven and firms in this industry require being innovative in order to survive.
             3. Meeting the needs and wants of customers by offering quality and reliable products at reasonable prices; and better than competitors, is a driver of change.
             4. Market innovation to better explain the vehicle features to customers better than competitors is a driver of change.
             IV. Key success factors in the industry:.
             The following are considered Key Success Factors for the Automobile Industry.
             1. Market share.
             2. Price and Costs .
             3. Market innovation and customer service.
             4. Technological innovation and know how.
             5. Environment creation through competitive advantage.
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             The key to success for the different firms in the industry lies in supplying quality products to users at low prices. .
             Firms with large market share and enjoying economies of scale can pursue cost leadership profitably. Firms can develop new overseas markets and new products. .
             Technological innovation especially in the product improvement, new product development and process improvement is a major success factor. It can help a company meet the needs of customers better than competition.
             Market innovation especially in improving customer service is critical to success in the industry.
             Companies will require building internal capability to create products and new markets in order to grow profitably in this industry.