Case Study Bmw

Background

BMW was founded in 1913, and established as we know it now a day’s BMW AG in 1917. In the beginning BMW produced aircraft motors but after the Second World War they been forced to cease the production of aircrafts, they shift to the production of motorcycles in 1923, and following in 1929 the production of automobiles. The first car that BMW produce successfully was the Dixi. The logo was first used in advertisement in 1929.

A huge crisis hit BMW in 1959 there were on a financial difficulty and the shareholders held to decide whether to go in liquidation or to find a way to carry on. Finally BMW decided to carry on, they eventually started buying enterprises and the company started getting up in 1994 they bought the British rover group they owned it for six years because rover was incurring in huge financial losses and BMW decided to sell it, they stick with mini launched it in 2001

Daimler-Benz AG was a German manufacture of automobiles, motor vehicles and internal combustion engines founded in founded in 1926 by the merge of Benz & Cie and Daimler Motoren Gesellchaft. Daimler-Benz most known as Mercedes-Benz created in the World War II al types of motors, submarine, cars and aircrafts. In 1998 Daimler-Benz bought Chrysler Corporation forming DaimlerChrylerAG , the group sold Chrysler eventually it rename as Chrysler LLC and the company within two months rename themselves as Daimler AG simply.

Mercedes-Benz is one of the best known and established automotive brands in the world, its also the world's oldest automotive brand still in existence today Updating

BMW now a days is one of the most important brand in the marked of luxury cars with his direct competitor Mercedes Benz, in 2008 BMW sold approximately 53.197 millions of Euros, reducing theirs sells of 2007 by 3 million Euros, the shareholder structure is divided like this: Stefan Quandt: 17,4%, Johanna Quandt: 16,7%, Susanne Klatten 12,6%, and in free float: 53,3%.

Its estimate that 56% of the vehicle BMW produce are power by petrol engines and the other 44% by diesel engines, the annual production of BMW presents in 2010 a production of 1,236.989 of BMW, MINI 241,043, Rolls-Royce 3,221 and motorcycles 112,271. The car-sharing launches in 2012 on December the program DriveNow operates over 1000 vehicles in the world and 60,000 costumers.

Making BMW an innovating brand that wants to respond to all the customer demand Mercedes Benz now a days represent for many people around the world luxury and a high status, the one that have a Mercedes car is a successful person, until 2009 Mercedes Benz produced a limited production of sport cars with the collaboration of Mclaren, Mercedes enter to team Mclaren formula one race. Mclaren ceased in 2009 the collaboration and went to develop its own car the Mclaren MP4-12C, launched in 2011. Mercedes throughout the years had maintained a high reputation for its quality and durability at the moment Mercedes has about 18 model of car, also trucks, buses and vans.

The car sharing program that they launched car2go recently added all electric fleets in Amsterdam and San Diego in 2011, they want to make the costumers life more easy, as a difference with zipcar the costumers doesn’t need to let the car in the same place he found it. Recently the market has develop the preoccupation of the environment affect the industries of all kind, Mercedes Benz assume this change in the environment as well of other brands and develop new concept of hybrid cars presented at the largest event of the industries of vehicles, the Frankfurt motor show.

People involved Norbert Reithofer was born the 29 of may 1956 in Germany, he is de CEO of BMW AG, also Chairman of the broad of management. For his way of manage the company he had received awards such as grand decoration of honours in gold in 2005, Bayerischen Verdienstorden in 2010 and Chevaliers of the Légion d'honneur in 2012. Norbert is a good example of a businessman that is creative and innovating he took the company and make what its now a days.

Talking about the project of car sharing Norbert recently celebrate the success on the project BMW is making huge advantages in the car sharing program, they introduced as the first luxury brand that own his own car sharing program in the US, working like this 70 electric cars parked in 9 garages, all license driver over 21 can drive. In comparison to hertz and zipcar DriveNow program does not need a membership fee to drive their cars. the initial point was san Francisco that has been proof to be one of the most enthusiastic population in car sharing.

Dieter Zetsche CEO of mercedes benz born on may 5 1953 in turkey businessman and CEO of Daimler AG since 2006. He joined Daimler-Benz back in 1976 working in the research department. He completed his doctorate in engineering in 1982 at the university of Paderborn . Zetsche is a very influential person he was one that influence the demerged with Chrysler in 2007, making the company change name as it is now Daimler AG.

He is making a huge effort to change many aspects of Mercedes-Benz company in order to be the leader in the market. He is a visionary an innovating person as well. The car sharing program has been successful at the moment they introduced the concept in Amsterdam in 2011 people usually refers as fantastic you can pick your car anywhere and left it anywhere. They are now on 21 countries and you can find them in 2 types powered by gasoline or electric, with 135km of range .

Organization involved

Zipcar is a us membership based on car-sharing that provides automobile reservation to its members, the members of zip car have to pay the time they used the cars whether is for a few hours or for days, it was founded in 2000 by Cambridge Massachusetts. Its know led by Scott Griffith. Now a days zipcar has 777,000 members and offers nearly 10,000 vehicles in the US, Canada, UK, Spain and Austria.

Making this the worlds leading carsharing network. Zipcar charges a one-time application fee, an annual fee, and a reservation charge. Gas, parking, insurance, and maintenance are included in the price. In recent years many competitor have been added to the market of car-sharing, zipcar in respond merged with flexcar to create a nation car sharing company . In our case this is one of the organizations that BMW and Daimler will confront as new competitors; this company is one of the leaders of the market making it a huge challenge for companies entering this segment of the market.

Hertz Is an American car rental company with international locations in 145 countries around the world. It’s the second car rental company in the world, it was founded by Walter L Jacobs in 1918, which started with the rental operations in Chicago with 12 ford model T, then in 1923 he sold it to Jhon D Hertz.

On December 2005 Hertz was sold to a private equity group for 5,6 billion dollar, on 2010 hertz acquire British Car Auctions, recently on 2011 hertz introduce ExpressRent kioskos on a huge number of locations. Hertz also started to introduce a number of green cars that are friendly with the environment, they now have hybrid cars, that as the other cars can be reserve via online or by phone.

Finally hertz Mark Frissora (chief executive) sold 120,000 shares earning 2, 16 million dollars. Hertz being the second largest car rental company in the world would represent another challenge for Daimler and BMW because having two powerful leaders of the market can difficult things, but as this brands have demonstrated along the years is that they know how to adapt to the market and environment. Enterprise

It was founded in 1957 it’s an international brand with more than 6,000 location distributed all around the united states, Canada, united kingdom, Ireland, Germany, France and Spain. Enterprise basically works the same as the other organization that gives out this kind of service, but the differentiation that they have is the low prices in their rents and the service that people give to the costumers when they want to rent a car or to give a complain.

Unlike the competitors they have always operated in a local network of neighborhood offices, and if its needed the company sends someone to pick you up now a day’s enterprise has location within 15 miles of the 90 percent of the population, by 2012 it operates with 6,500 offices around the world, as handling millions of dollar per year they purchase also million of dollar worth vehicles throughout local dealerships.

In our case this is another example of a huge company that has the perfect knowledge of the market, what they want, what they need, as we seen all these 3 leader organization has differences that take all the possibilities of entering in a different way on the market down.

Main problem The differentiation has always been a problem to organizations that want to enter to a new market or want to innovate, in this case we can see that Daimler and BMW want to expand their vision getting in the car sharing branch, well I think it’s a pretty good idea to expand, but there is the problem that would always appear if an organization want to expand, how you would be different from others?, how my product or service would be preferred by the costumer over the one of the competitor. In conclusion I think that the most relevant problem is how these organizations would overcome the existing ones in order to be the leaders of car sharing programs.

Strategy Its evident that BMW and Daimler AG are luxury car makers that know how to read the market, that are customer driving organizations, that satisfy the needs of the customers, with all these experience I think that what they should do what people expect them to do, that is to say, they are seen as an huge organization that takes car beyond expectations of customers, in the car sharing program they should do the same, look at the competitors and see what its missing , in order to implement It on their car sharing programs, this case dates from 2010.

Now a days in 2013 we can see that all this projects have been sucsesfull because they knew hoe to give the customer what zipcar or hertz did not, an easier way to use the cars, to become part of the family,to live the experience of car sharing.

Questions 1. Discuss environmental factors related to population that are changing the way certain people approach car buying and are thus creating new market segments.

Environmental factors have always been an issue for companies because they have to adapt to this changes in order to survive in the market, some of this environmental factors affect the customer as well changing his/her way of thinking, for instance now a days the great issue in the world is the global warming, despite this has been a problem from long years ago, now people are paying more attention to it, so green products became one of the most important things to do, simply because the way of thinking of the society changes, making people care more about the earth, so often people prefer to buy a product that is friendly with the environment to another that’s not.

These is the same effect on car selling, some people prefer now to buy green cars than cars that damage the environment they feel like they are doing something good to help the earth.

2. Describe the values held by this emerging group of drivers that incline them toward car sharing programs. The concept of vehicle ownership is changing and so the attitudes towards car sharing services, urban drivers concerns of environmental issues have become their number one priority, the values that are implied in this emerging group of people are the creation of conscience toward the damaging of the environment, the risks that this problems have in your life, the worry for the society, this people have acquired a commitment not only with themselves but also with the society.

3. How are automakers using car-sharing programs to cater to customers’ component lifestyles? The lifestyle of people is changing, every year cities become more populated, and therefore the congestion is more intense, limited parking sites, more pollution safety and security became a problem for the society.

A good company characterizes themselves by getting advantage of every situation in order to expand, because lifestyle is changing and more people are worried about their future, companies are making this car-sharing programs in order to attract another different kind of segment, these programs make people feel good with themselves and the company also wins profits by making these kind of expansions.