Better has seen it invest heavily in technological innovations aimed at enhancing environmental sustainability through such means as emission less electric motor engines, the pioneer car being the BMWi3 (BMW Group website, 2015). In addition to creating means of mobility that are environment friendly, the company’s core mission is to become even better in terms of product and service delivery, command a larger market, and enhance customer satisfaction and hence brand popularity. Information gathered from the company’s website shows that its major goals are to increase production and consequently annual sales to 2 million by the year 2020 and to expand and diversify through innovation its SUV fleet in order to cater for the emerging needs as well as the emerging markets.
Additionally, integral in the company’s objectives is its pursuit of fuel efficiency of its automobiles. Though famously known for its lack of appropriate technologies for developing products that meet higher fuel efficiencies, BMW, in a bid to change this perception is working round the clock to come up with models that accomplish the same. As noted by Porter (2008), the cycle of competition underlines the drift between competitors over time.
Although BMW Group experiences a consistent annual growth in its sales due to its behest technology that enables it to counter that of its major competitors, the power and market effects of the competitors cannot be simply undervalued. The company’s competitive advantage lies in its integral process and design. BMW uses modern technology to gain higher economies of scale. Through its products that range from MINI to Rolls-Royce, one notices that the company’s automotive products range from luxury to premium segment, in sharp contrast with major competitor products that are largely of the luxury segment.
Quick previews of the company’s major competitors that include Mercedes, Toyota, Volvo, among others reveals that such companies tend to deal with more of economic and luxury cars and less, if any of premium products. The automotive industry is one characterized by extensive dynamicity resulting from technological advancements and at the same quite restrictive to new entrants. Given the large initial capital cost needed for new business startup in this industry, BMW faces significantly less threats from new entrants.
Additionally, the time it takes for a car manufacturing company to win consumer trust and establish a significant
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