E/B/292. Strategic analysis of BMW based on case study from Johnson, Scholes and Whittington 'Exploring Corporate Strategy'

This paper is based on the case study from Johnson, Scholes and Whittington (Exploring Corporate Strategy). The paper answers the following questions: What main trends were identifiable in the business environment in general, and in the automobile industry in particular, in 2004? Analyse competitiveness in the automobile industry in 2004 from the perspective of BMW using Porter's 5-Forces framework. What future changes could one envisage through an analysis of the external environment? What were the Critical Success Factors (CSF's) in the market segments in which BMW competed? Did BMW possess the strategic capability to compete at that level and acquire a sustainable competitive advantage? What core competences did it possess? What were the bases of BMW's strategy, i.e. what route did it appear to follow on the 'strategy clock'? What directions and methods of strategic development does BMW follow? Evaluate their effectiveness in its markets.