BMW Prototyping :: GCSE Business Marketing Coursework

BMW Prototyping It is 1990 and BMW (Bavarian Motor Works), along with other European Luxury car makers, is beginning to feel significant market pressure from the new Japanese entrents into the traditionally European market of Sport/Luxury cars. With new Marques like Lexus, Infinity, and Acura, the large Japanese auto makers are attacking the lucrative market of auto companies like Audi, Jaguar, Mercedes, and BMW. The new Japanese makes have been able to establish a market presence by offering a lower price for the same level of content and by raising the bar on metrics like build quality and customer complaints per vehicle. BMW must act to counter the threat that these new makes pose to their market share. Top officials of BMW are meeting to set the future of the company’s prototyping activities. The prototyping and product development process is one of many aspects that will need to change if the company is going to adapt to the new global Sport/Luxury car maket In the post-war era, the Sport/Luxury car market had been dominated by the European auto makers. Up till now these auto makers have only had to compete against each other. In this market BMW’s strategy was well defined and successful. They built automobiles that were always on the leading edge of technology and offered a level of design refinement that was matched by only a few. This formula allowed them to command a price premium and, as the demand from North America increased, BMW became very sucessfull. According to the Harvard case study, BMW production of automobiles increased from 150,000 cars in 1970 to over 500,000 cars in 1990. Technological content and level of refinement are the factors that drive the demand for BMW automobles in the marketplace. BMW’s reputation for posessing a high level of technology reaches the potential buyer through the automotive press. Articles on the technical innovation of BMW automobiles and glowing reviews of new BMW products are the best form of advertising the company could posess. BMWs are purchased by enthusiasts and these enthusiasts read the automotive press. The new Japanese makes have been able to usurp some of the space in these publications from BMW by introducing new features and technology updates on a more continuous basis. BMW buyers also make their choice based on the level of refinement in these automobiles.