BMW Case Study SWOT Analysis & Solving Problems

BMW case study

BMW Group is one of the leading sellers of automobiles, motorcycles, and supercars in the world. It also offers financial services in a niche market. The multinational firm has a presence in large markets in North America, Germany, and many parts of Europe and Asia. BMW launched a new car model, the MINI. With various unique features, the model is economical, with more room in far less space. Nicknamed Wizardry on Wheels because of these features, the launch needed to shake the industry. Although BMW enhanced its publicity using print advertisement using magazines and publications in the past, the print advertisements were designed with precise specifications of the car. The unit sales have been increasing yearly since 2002. The major challenge is how to select the best advertising agency for the launch. The company needs to do a proper cost-benefit analysis before the selection.

SWOT Analysis


The unique design and efficient technology of the Mini Cooper make it stand out in its class. In this regard, the company can gain a significant advantage from its innovation (Shiu, Bonacina, A., & Binninger, 2017). The uniqueness of this model has been impressive, attracting a specific segment of customer toward the car.


One of the weaknesses of the new model is the manufacturing cost. High operation costs might limit its expansion by the fact that the overall cost is higher compared to its competitors (Campelo, 2017).  The company needs to adopt strategies to beat stiff competition in the subcompact car segment. BMW can consider several options such as innovation and market differentiation.


Innovation and technology shifts can be an opportunity for BMW and Mini Cooper to get some market leverage. Furthermore, the company can strengthen its presence by expanding into North America, Germany, and many parts of Europe and Asia (Campelo, 2017). Besides, the positioning of the model as a premium brand justifies the higher prices, which can only attract a wealthy clientele.


BMW needs are aware of the effects of a high price because competitors would sell a similar model at a lower price. The reality is that maintaining market performance after the reduced cycle can diminish the brand image.

 How BMW is Dealing with the Issues/Problems

Although BMW has the opportunity to expand into other countries by increasing its manufacturing capacity, certain risks might limit its production capacity. Taxation, for example, can be a great burden. However, the company can overcome this challenge using strategic mergers and acquisitions to enable it to gain market share gradually while penetrating the new markets (Elijayar et al., 2017). For example, the US market has been unfavorable due to high operational costs that include high advertising expenditure. Through mergers or acquisitions using leading brands, BMW can solidify its presence even in volatile markets like in the US.

Although the Mini Cooper has not been impressive in the United States markets due to its small size, the model’s uniqueness can help the company gain a good market share and gain a competitive advantage in various markets. The company can publicize features of the Mini Cooper to build brand image by depicting it a fun and adventurous car with excellent mobility (Kladis et al., 2017). BMW’s focus on quality and product differentiation can help it create a niche market segment. However, to maintain its market position, sustaining the Mini’s appeal as a luxury brand is crucial.

The main areas of differentiation need to focus on alternative designs and security features as a strategy for maintaining its uniqueness as a luxurious car brand. BMW can still rely on innovation to manufacture unique products to meet the taste of consumers. Most of its products are exclusively premium cars. BMW Group can easily tap into new markets used by the former brand to maintain its growth.

Naturally, it is expected that when the Mini Cooper model is launched in international markets, the company will achieve higher sales. However, the primary concern would be how to effectively minimize the threat of substitute products that may affect this market share (Elijayar et al., 2017). The fact that the Mini has a unique design makes it a potentially strong brand. Brand image and the differentiation are enough to enable Min Cooper to remain a top trade name in the future. The advertising agency needs to present a brand using superior photos that depicts the model as a prestigious image to attract a broader market.


The report highlights the alternatives BMW can use in promoting its new model, the Mini. Before the company launches the product, several considerations such as marketing strategies need to be reviewed and must align with the product features, which include innovativeness and uniqueness. However, the company faces other contemporary issues. A SWOT analysis for the new product Mini Cooper reveals not only threats but also opportunities and areas of improvement. These are essential considerations apart from finding the right advertising agency to popularize the brand.


Campelo, A. (Ed.). (2017). Handbook on place branding and marketing. Edward Elgar     Publishing.

Elijayar, A., Sridhar, A., Sharma, D., Sims, J., Tuv, K., & Chokshi, V. (2017). BMW 7 series marketing plan.

Kladis, S., Kavaratzis, M., Rigopoulou, I., & Salonika, E. (2017). The role of brand elements in destination branding. Journal of Destination Marketing & Management6(4), 426-435.

Shiu, E., Bonacina, A., & Binninger, F. M. (2017). Innovation management for products and processes in the automobile industry: Example of BMW. In Handbook Of The         Management Of Creativity And Innovation: Theory And Practice (pp. 191-216).

Shiu, E., Bonacina, A., & Binninger, F. M. (2017). Innovation management for products and processes in the automobile industry: Example of BMW. In Handbook Of The  Management Of Creativity And Innovation: Theory And Practice (pp. 191-216).

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