BMW Going on the Offensive


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:

Case Code : BSTR065 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Themes

Corporate Restructuring
Case Length : 13 Pages
Period : 2003
Organization : BMW
Pub Date : 2003
Teaching Note : Not Available
Countries : Germany
Industry : Automobile

Abstract:

The case examines the growth of BMW, a business conglomerate based in Germany, into one of the leading automobile producers in the world by the 1990s. It critically examines the circumstances that led to the acquisition of the Rover Group by BMW and discusses the problems that surfaced after the acquisition. The case discusses the restructuring initiatives taken by BMW after the sale of Rover - particularly the product offensive strategy adopted by the company. It examines the results of the restructuring and discusses the future of BMW in the light of competition in the premium segment of the automobile industry and potential roadblocks caused by its strategies.

Issues:

Trends in the premium segment of global automobile market

Contents:

  Page No.
Racing Ahead 1
Background Note 2
BMW-Rover: A Troubled Alliance 4
The Restructuring 6
The Results 7
Driving into the Future 8
A Few Potential Roadblocks? 9
Exhibits 11

Keywords:

Case, BMW, conglomerate, Germany, automobile producer,1990, acquisition, Rover Group, restructuring, sale, Rover, offensive strategy, results, restructuring, BMW, premium segment, automobile industry, roadblocks, strategies.

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