BMW SWOT Analysis, Competitors & USP

SWOT analysis of BMW analyses the brand by its strengths, weaknesses, opportunities & threats. In BMW SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like BMW to benchmark its business & performance as compared to the competitors. BMW is one of the leading brands in the automobiles sector.

The article below lists the BMW SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the BMW SWOT Analysis:

SWOT Analysis of BMW

For BMW, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

BMW Strengths

The strengths of BMW looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of BMW :

1. BMW is known for constant product innovations and technological advancements which has made it a leading car brand

2. BMW has a diversified portfolio including SUVs and Luxury Sedans as well as sports car

3. Most of the cars are equipped with iDrive, an in-car infotainment  system, which connects all the inner functionalities and capabilities

4. Great Styling and elegant interiors is a feature of BMW cars

5. It is one of the oldest car manufacturers and have strong market presence and legacy

6. Diversification in business through brands like Mini and Motorrad as well as Husqvarna have helped BMW grow

7. BMW has excellent advertising and is top of the mind luxury brand, also involved in motorsport and sponsorship of global events

8. Nearly 100,000 employees and produces approx 1.5 million cars per annum

9. BMW is globally present especially in countries like USA, India, Brazil, South Africa, Japan, Europe etc

10. The company is also known for manufacturing sports motorcycles

BMW Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the BMW SWOT Analysis:

1. Strong competition from other luxury manufacturers means BMW has a constant fight for market share

2. Being a popular brand, minor controversies are blown out of proportion which affects the image

BMW Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in BMW SWOT Analysis:

1. Expanding automobile market and available space for competitors is an opportunity for BMW

2. Increasing the offered product portfolio along with diversification

3. The reputation and brand identity earned by so many years of existence, can be leveraged to acquire new customers

4. More inclination of affluent customers to purchase premium global brand like BMW

5. Augmenting the distribution and service network in various countries

BMW Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of BMW are as mentioned:

1. Increasing fuel costs can lead to people using public transport more extensively

2. Competition from other big automobile giants can affect BMW's market share

3. Competitive products offering same level features at a lesser price

4.Product innovations and frugal engineering by competitors

BMW Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 11 competitors of BMW:

1. Audi

2. Mercedes Benz

3. Volkswagen

4. Honda Motors

5. Porsche

6. Toyota

7. Volvo

8. Aston Martin

9. Jaguar

10. Hyundai Motors

11. Skoda Auto

Hence this concludes the BMW SWOT analysis.

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About BMW

BMW Overview
Parent Company	BMW Group
Category	Luxury Sedan, SUV
Sector	Automobiles
Tagline/ Slogan	Ultimate Driving machine; Sheer Driving Pleasure
USP	BMW is technologically advanced and luxurious product portfolio delivering ultimate driving experience
BMW STP
Segmentation	Luxury segment cars for affluent customers
Target Market	Targeted towards rich professionals and affluent families
Positioning	BMW is positioned as eco-friendly and technologically advanced company which inculcates innovation in the products to provide an exhilarating driving experience
BMW Product Portfolio
Brands	1. BMW 3 Series 2. BMW 5 Series 3. BMW 7 Series 4. BMW X3 5. BMW X5 6. BMW X6 7. BMW Z4 8. BMW i8 The above mentioned brands are the prominent products under the BMW product portfolio.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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