Bayerische Motoren Werke

Question: German top-of-the-range carmaker BMW said Wednesday it will increase the number of models it builds in China from three to six in the coming years to meet growing demand. BMW currently produces three models in China, the BMW 5 Series sedan, the BMW 3 Series sedan and the BMW X1. However, "we are strengthening our focus on meeting the needs and aspirations of our Chinese customers," said board member Friedrich Eichiner. "This is why we are going to produce even more models specially tailored to the Chinese market. We are going to double our range of locally produced models in the future -- from three to six," Eichiner said. The new models will include "a completely new entry model below the 3 Series" and a variant of the BMW X3 specifically developed for and produced in China. Describe the theory of adaption. How this theory applied in BMW. Answer: About BMW BMW, also known as Bayerische Motoren Werke is one of the most renowned automobile brands in the World. It is a Germany based company with its headquarters in Munich. It manufactures various products like Automobiles, Rolls, Royce, motorcycles, aircraft engines and BMW mini. It has 23 production firms in 12 different countries all over the world. The company is also known for its world,s leading premium manufacturer. The company generates profit of around Euro 5.12 billion (Ciferri, 2015). The competitors of BMW are Mercedes, Hyundai, and Tesla. BMW has invested more than two billion Euros over the past five years, in its Chinese firms and has expressed an optimism of investing in China (The Economic Times, 2015). The general strategy of BMW: In the early stage of BMW, It believed in promoting high profile sports car, branding and super performing engines. For its sustainability the BMW follows premium branding strategy. The generation is changing its course of sustainability everyday to which new mobility solutions is required in every sector. The market has become more consumers oriented and to meet these challenges, BMW formulated its number 1 strategy. The first strategy aligns the company with two targets. To enhance long term values in alteration course and to be more profitable. These two policies both can be applicable to cultural and structural aspect of the Organization (Group, 2015). There has been four pillars to the strategies of BMW, they are: shaping future of the company, access to customers and technology, growth and profitability. The theory of adaptation of BMWs decision of introducing three more models in China is closely related to Market Orientation. Generally Organizations initiates strategic adaptations to achieve competitive advantage. As BMW aspires to meet the aspirations and need of the Chinese customers, therefore it is clear that the Chinese customers are not only satisfied with BMW but the BMW is also generating a good amount of sales revenue in Chinese market. Market orientation: Today market orientation is one of the most common theories that apply in major products. The market is more about customer satisfaction and not just about products (Tracy, 2014). Today huge market research and analysis is done only to under the consumer behavior of a region, a city, a country or globally. Market orientation is conceptualized with the help of three basic dimensions. They are: Interfunctional coordination Competitor orientation And customer orientation. Interfunctional coordination: it is one of the significant roles of market orientation that is effective in getting business purposes marketing related tasks with finance and manufacturing (Kohont and PooÃÅ' r, n.d.). BMW is now deciding to invest more on China and expecting profit through its marketing. Competitor orientation: the competitor orientation refers to the various strategies adapted by BMW to overtake the marketing strategies of its competitors. Customer Orientation: it was after discovering that the Chinese market is appropriate for introducing three more models the BMW decided to launch the idea. BMW firmly believes in strengthening their targets on meeting their customer needs. References BMW, (2008).BMW Product Name History. [online] Motorcycle.com. Available at: https://www.motorcycle.com/events/bmw-product-name-history-86961.html [Accessed 16 Feb. 2015]. Ciferri, L. (2015).Mini expects leaner lineup to boost profits. [online] Automotive News. Available at: https://www.autonews.com/article/20150105/OEM/301059931/mini-expects-leaner-lineup-to-boost-profits [Accessed 16 Feb. 2015]. Group, B. (2015).BMW Group : Company : Company portrait : Strategy. [online] Bmwgroup.com. Available at: https://www.bmwgroup.com/e/0_0_www_bmwgroup_com/unternehmen/unternehmensprofil/strategie/strategie.html [Accessed 16 Feb. 2015]. Kohont, A. and PooÃÅ' r, J. (n.d.).Market orientation and HRM. The Economic Times, (2015).BMW to double number of models built in China - The Economic Times. [online] Available at: https://economictimes.indiatimes.com/news/international/business/bmw-to-double-number-of-models-built-in-china/articleshow/38494337.cms [Accessed 16 Feb. 2015]. Tracy, B. (2014).Marketing. New York: AMACOM.