Analysis of Bmw’s Competitors

Analysis of BMW’s Competitors

Mercedes-Benz

One of the giants in the luxury automobile industry is Mercedes-Benz, which is firmly established as an independent brand within one of the world¡¦s leading car companies, DaimlerChrysler. According to Mercedes-Benz¡¦s company website, the company sold 224,421 vehicles in the U.S. during 2005. For decades, Mercedes Benz has been known for its prestige brand name and its classy and timeless look.

Mercedes-Benz¡¦s current strategy is built on four central pillars: global presence, leadership in technology, strong brands, and a broad product range. To compete with other strong rivals in the luxury car segment, the company is committed to a combination of profit growth and quality improvement objectives. Mercedes-Benz is devoted to be an integrated mobility company that offering complex mobility services instead of just being a car manufacturer that sells vehicle.

Consider, Mercedes-Benz identify consumer¡¦s demand for utility and characteristic as the trend of automobile industry, therefore applying the SUV technology from Chrysler onto their recent new models. In terms of resources and capabilities, Mercedes-Benz is a strong competitor. The company possesses strong financial resources and brand equity, has valuable merger with DaimlerChrysler which helps increasing technology base, and the management team is dedicated to further improve on car quality and cutting down cost with lean manufacturing process.

Currently, Mercedes-Benz is suffering from a plaque in profit and quality and its brand name is eroding since merging with DaimlerChrysler. If Mercedes-Benz is unable to make any improvement, it might damage its image in the premium market.

Audi

One of the luxury arms of the Volkswagen group. Representing the conservative values, the high quality and one of the industry¡¦s best 4WD system by the Quattro GmbH. Since it was always hard to compete against the two German giants, Audi usually offer its cars with better features or at a lower price.

The goal of Audi, according to Martin Winterkorn, the chairman of Audi, is to pursue high sales volume and profit growth. They are aiming to break 1 millions of annual car sales in 2008 and sell at least 1.4 million vehicles in the year 2015. In order to improve its position in the premium market, Audi¡¦s strategy is to strengthen the desirability of its brand in addition to optimize process and utilize its resources more purposefully to create higher efficiency. Audi believes that innovative technologies bring lasting competitive advantage in the premium car industry.

Due to their belief, Audi is building up a technology portfolio in which they find innovative technologies at an early stage and develop them to the stage ready for the future market. In terms of resource and capabilities, Audi is globally known for its technological know-how in Quattro drive which distinguishes themselves among top competitors. In addition, Audi is affiliated with financially strong Volkswagen group which enables resource sharing in technology and allows cost reduction. From these prospective, the future of Audi looks bright.

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