1- What are the opportunities and threats that could impact the organization?
Review all the general environmental categories. (PESTEL Analysis)
Use Porter’s Five Forces model to analyze the company’s industry. Identify key competitors and analyze their strategies, core competencies, and competitive response.
2- What are the strengths or weaknesses of the organization?
Review factors within the company that are critical to the strategy of the firm, and classify them as strengths or weaknesses.
Look for resources, capabilities, and core competencies.
Use the "Four Criteria of Sustainable Competitive Advantage".
3- In the past, BMW has been able to successfully differentiate its products by engaging in value-adding value chain activities. What are some of these specific activities? How can BMW ensure its ability to continue with value-adding activities as it evolves into a maker of self-driving cars?
Full Answer Section
- Manufacturing: BMW's manufacturing process is highly efficient and quality-focused. The company uses the latest manufacturing technologies and has a team of skilled workers who are dedicated to producing high-quality vehicles.
- Marketing and sales: BMW has a strong marketing and sales team that is responsible for building brand awareness and generating leads. The company also has a network of dealerships that provide customers with a premium buying experience.
- Customer service: BMW offers excellent customer service before, during, and after the sale. The company has a team of dedicated customer service representatives who are available to answer questions and resolve any issues that customers may have.
How BMW Can Ensure Its Ability to Continue with Value-Adding Activities as It Evolves into a Maker of Self-Driving Cars
As BMW evolves into a maker of self-driving cars, it will need to continue to focus on value-adding activities in order to maintain its competitive advantage.
Here are some specific ways that BMW can ensure its ability to continue with value-adding activities:
- Invest in research and development: BMW will need to continue to invest in research and development in order to stay ahead of the curve in self-driving car technology. The company will need to develop new technologies and features that make its self-driving cars more attractive to consumers.
- Partner with other companies: BMW can partner with other companies in the self-driving car industry in order to share resources and expertise. This will help BMW to develop and market its self-driving cars more quickly and efficiently.
- Focus on customer experience: BMW will need to focus on providing customers with a great experience with its self-driving cars. This includes things like making the cars easy to use, providing excellent customer service, and offering innovative features and services.
Example of a Value-Adding Activity: BMW's iDrive Infotainment System
One example of a value-adding activity that BMW engages in is the development and marketing of its iDrive infotainment system. iDrive is a user-friendly and intuitive system that allows drivers to control a variety of functions in their car, including navigation, audio, and climate control.
iDrive is a valuable feature for BMW customers because it makes their driving experience more enjoyable and convenient. It also helps BMW to differentiate its products from the competition.
How BMW Can Continue to Add Value as It Evolves into a Maker of Self-Driving Cars
As BMW evolves into a maker of self-driving cars, it can continue to add value by focusing on the following areas:
- Developing innovative self-driving car technologies and features: BMW can continue to invest in research and development in order to develop new technologies and features that make its self-driving cars more attractive to consumers. For example, BMW could develop self-driving cars that can learn the driver's preferences and habits over time, or self-driving cars that can communicate with each other to avoid accidents.
- Making self-driving cars safe and reliable: BMW needs to focus on making its self-driving cars safe and reliable. This includes things like developing robust safety systems and testing self-driving cars extensively in real-world conditions.
- Providing customers with a great self-driving car experience: BMW needs to focus on providing customers with a great self-driving car experience. This includes things like making the cars easy to use, providing excellent customer service, and offering innovative features and services. For example, BMW could offer a subscription service that gives customers access to the latest self-driving car technologies and features.
By focusing on these areas, BMW can continue to add value to its products and maintain its competitive advantage as a maker of self-driving cars.
Sample Answer
BMW has a long history of engaging in value-adding activities in its value chain. This has helped the company to differentiate its products from the competition and to maintain a premium price point.
Some of the specific value-adding activities that BMW engages in include:
- Product development: BMW invests heavily in product development, and it is known for its innovative and cutting-edge cars. The company has a team of world-class engineers and designers who are constantly working on new technologies and features.