The BMW protects itself from the threat of new entrants into the market by its dynamism in the market, large base of knowledge and experience and economies of scale due to it’s a large investment. Its brand BMW protects it from copy and is associated with the knowledge and quality of the products. This brings them huge benefits because of the large extents of their loyal customers. For a car to qualify as a substitute for BMW, it has to fulfil the quality status set by the BMW. They are not easily substituted by low cost cars because the low cost cars do not meet the emotional need for prestige and identification. Ecological aspects do not bother BMW group because given a choice between comfort and going green, most of its clientele would opt for comfort and luxury. BMW has derived favourable merits on its products because it produces most of its cars in German. This is because German was named the best automobile producing country all over the world.
The group’s clear and consistent strategies have seen to its success. The strategy it has used for a long time is development of highly luxurious cars with a high cost of production but affordable to its target group. Even though the target group of BMW has been the prestigious in society and the corporate world, it still has to make sure that the clientele is getting value for money yet affordably. The marketing strategy of BMW is sporty and performance oriented cars. The strategy is based upon their high level of craftsmanship and ingenuity. It has come up with slogans such as the ultimate driving machine which has been consistent in the delivering message as well as keeping its promise for the last 40yrs. The company has been stable especially since the ownership has not changed in a long time. The group also uses motor sports and films as stands for advertisement which has seen to the consistency in their market hold over time (Vuskane, 2010).
Another of their strategies in business is its distinctive...