BMW Competitive Advantages

The leading producer in the global market of porch and luxury cars has its parent company Bayerische Motoren Werke Aktiengesellschaft (BMW AG) based in Munich, Germany. The group owns several other notable brands such as Rolls-Royce and MINI other than the BMW. Let’s know about BMW Competitive Advantages.

BMW Competitive Advantages

The group focuses on four business segments: automotive, motorcycles, financial services, and other entities. The company works under a hierarchical structure with over 122,244 people employed globally with 30 sites for manufacturing in 14 countries.

BMW Competitive Advantages

Being one of the strongest competitors, their competitive advantages can be broadly explained based on:

  1. Symbol of Achievement

Providing cars in the premium category, the brand has gained such standing amongst the public it often is considered a trait of a successful have one. Owning a beamer is interpreted as a sign of a higher standard of living or achievement. 

  1. Excellence in Customer Service

 The feedback for the post-sales customer service that the company received was very positive. This implies that their customers were so impressed and satisfied with the services providing an advantage in the market over the others.

  1. Appealing Looks and Features of the Brand

BMW’s basic and key features for their cars include; a counter curve in the window-outline, a Hofmeister kink, a rounded radiator grille, and above all the attractive design are all given to each of their models along with special additions for each.

  1. Research and Development   

Properly knowing the market, fans’ hearts, and expectations are identified and researched to keep up with the competition and reputation and to ensure their sustainability through proper integration of the latest and appropriate technology.

  1. Electromobility

 In the present scenario, the world is behind healing the Earth from the polluting fossil fuels have made. Moreover, fossil fuels are exhausted limitlessly by humans. As a solution to address both these problems, we have the technology of Electric Vehicles. 

Though most companies have trusted less on this experiment, BMW had its e-mobility technology at the peak of its growth. Electromobility has been declared the “latest direction” for the automotive group. The all-electric BMW i3 had been an amusing move from the company.

  1. Passenger Safety

 While the number of accidents and injuries on roads is scary, we need cars that keep us safe inside. Cars from the BMW are truly safe and offer plenty of features onboard. The active and passive safety features would assure that you are safe in position, conscious in driving, and healthy. All vehicles from the BMW have received high ratings from the various crash-test agencies.

  1. Global Manufacturing and Distribution Network

 BMW is recognized as a premium luxury brand making it a beautiful and worthy buy. The brand has got global recognition which has helped them establish itself faster and easier across the globe. 

  1. Capable Technical Expertise and Manpower

The brand takes good care of its employees. Talented people in the group would sit together, discuss, and bring in better solutions to the challenges they are facing. 

BMW’s Drawbacks in Business Strategy

BMW, from the time it got established, claims that it is intensely committed to innovation. This itself has posed a great challenge to the automaker. The introduction of newer technologies at a faster period would increase the cost of production of the models. 

High cost, time consumption, and risk factors contribute to the negative side of the business strategy. The increased production of vehicles has been regulated strictly by authorities as a part of controlling global warming.

Competitor Companies

There has always been strong competition, especially in the automobile industry. BMW being among the leading producer of luxury cars has indeed got a pretty good list of competitors that include Mercedes-

Benz, Porsche, Audi, Lexus and Fiat Chrysler Automobiles (FCA), Nissan Motor, Honda, Toyota motor corporation.


The company has been making an increased profit flow since 2015 showing a net profit increase of 10 percent, with the intervention of robotics in manufacturing. With an efficient management system, great leaders, and a promising, creative workforce BMW will remain a big name among the leading companies manufacturing luxury cars. Having a lot of competitive advantages and a few disadvantages, BMW sustains well in the fast-growing market with a good reputation.

Frequently Asked Questions 

1. What is BMW’s Strategy?

The fundamental strategy of the company is its brand reputation and influence on people gained through uncompromised standards of quality, technology, service, performance, and uniqueness.

2. How does BMW communicate with customers?

With customers or buyers being their topmost priority, the group has a variety of mechanisms to communicate, inform and hear from customers. These include advertising through different public media, sales promotion, and direct marketing.

3. What are the main competitive threats for BMW? 

The various threats BMW faces in the market are; stiff competition, future imposing of tariffs, recession and other effects of the pandemic, meeting the environment-friendly terms, pricy manufacturing, etc.

4. What is a competitive advantage?

The reasons or factors that let a commercial organization be more profitable than its competitors by manufacturing or providing services at a cheaper investment.

BMW Competitive Advantages

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