The Intensive Research on the Business Model Of BMW you always needed

Updated on: Sep 20, 2021
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My name is Aditya Shastri and I have written this case study with the help of my students from IIDE's online digital marketing courses in India.

Practical assignments, case studies & simulations from Harvard Business Review helped the students from this course present this analysis.

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BMW is a popular company especially known for its cars. The luxury brand has maintained a unique, distinctive marketing strategy with advanced campaigns that have roped many consumers to its company.

In this case study, we will be discussing the business model of BMW in detail.

Let’s get started with the company’s introduction

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About BMW

The name BMW stands for driving pleasure. But what is the acronym for this acronym? How did the name BMW come from? Read the interesting story behind the name of the transportation company. BMW stands for Bayerische Motoren Werke GmbH, meaning similar to Bayerische Motorenwerke GmbH. It also refers to the original BMW product line engines for various applications.

BMW produces motorcycles under the BMW Motorrad brand. In 2012, the BMW Group produced 1,845,186 cars and 117,109 motorcycles of various brands. Together with Audi, BMW is one of the top three luxury car manufacturers in Germany and Mercedes-Benz, they are one of the three best-selling luxury car manufacturers in the world.

The first large BMW aircraft engine (and any type of commercial product) was a liquid-cooled BMW IIIa inline six-cylinder engine from 1918, which was in great demand for high-altitude performance.

Now that we got an idea of what a BMW is. Let’s get into the main segment of the case study – the Business Model of BMW.

Business Model of BMW

The business model refers to a company’s profit-making strategy. It specifies the products or services that the company intends to sell, its target market, and any anticipated expenses. Business models are critical for both new and established companies. They assist new and developing businesses in attracting investment, recruiting talent, and motivating management and staff. Established businesses should keep their business plans up to date regularly, or they will miss out on future trends and issues. Business plans are used by investors to assess companies that they are considering investing in.

So now let’s see the uniqueness and originality of BMW in its business model below.

Target Audience

Demographics, psychographics, and behavioral characteristics are used to segment the luxury vehicle manufacturer’s products on the model. The customers of BMW commonly fall in the age group (35-50), are finding success in/her career, have a taste of idealistic products & values their own social status. These people expect superiority, performance, dependability, and quality.

BMW targets people from a high level of income because they can afford BMW and appreciate the masterpiece. BMW, the global market leader, has set up itself in the automobile industry as a symbol of quality, technological advancement, high performance, and uniqueness.

So the company does maintain a strong target over its audience. Now let’s see the variety of products offered by BMW.

Products of BMW

The company created motorcycle and airplane engines in 1900 before moving on to cars a few years later. BMW is still at the top of its league in the car industry for a long time now. Although BMW is involved in a variety of sports and events, as well as other promotions, the key to BMW’s success is its car lineup. Car lovers regularly focus on providing reviews of these vehicles on the internet and television, as well as feedback about how great BMW feels to drive.

BMW began with basic models but quickly advanced to advanced engineering. The cars now possess powerful engines, outstanding pickup, terrific speed, and a promise of safety and reliability. BMW Motorrad to focus on high manufacturing techniques. However, the statistics of cars sold by BMW are much higher in comparison to motorcycles.

A significant element is that BMW is essentially free to operate on its own, whereas Audi and Mercedes are tied to different companies (VW and Mitsubishi/Chrysler, respectively) and thus must use parts from across the companies to save money. BMW has no such restrictions and is free to use exactly the right part designed precisely for the job at hand. To the general public, this appears to improve the company’s reputation, and it appears to be a rare case of the general public expecting to pay a bit more for a product they perceive to be of top quality.

The above mentioned are product categories offered by the brand. To popularize it, the firm has certain key resources which help them in maintaining its position. Let’s see it in detail below.

Key resources

124,729 employees with 31 production and assembly facilities in 14 countries as well as a global sales network. The distribution network is huge and had good intellectual property. 29 models with maximum  CO2 emissions of 100g/km. Competitive advantage, strategic approach, environmental wind tunnel, Innovative robot system at Plant Spartanburg are the key factors in the company BMW.

Now that we had an overview of the company’s key resources. Let’s take a look at its customer services. 

Customer Services

BMW maintains an exclusive and Trendy product portfolio. Brand awareness has created a huge brand reputation among its audience. Customer service satisfaction is top-notch. Clear reporting and a corporate governance policy aimed at stakeholders’ interests are existing traditions in the BMW Group.

Economic success is built on long-term thinking and responsible action. Ecological and social sustainability is maintained by the brand profoundly. BMW Connected Drive provides services and apps that can be controlled through the vehicle’s onboard computer.

Brand-conscious customers have a high income and are wealthy. There are numerous businesses in the industry that have achieved tremendous success in the business world these days.

All of this is possible thanks to the business models that they have, which prove to be a great help to them when it comes to achieving certain levels of success in their businesses.

This is where we conclude the case study

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All in all, BMW is a powerful company, and it has repeatedly proven that it is worthy of being a leader. BMW’s marketing strategies and activities successfully targeted the audience and communicated with them effectively. Expand because they own your brand and can enter the high-end market. If BMW continues to play to its advantage, it will certainly maintain its dominant position in the market.

Thanks for reading! We hope this blog is informative and useful with interesting insights.   Also, if you’re in digital marketing try Karan Shah, CEO, and Founder of IIDE’s free digital marketing basics  masterclass. 



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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]


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