Bayerische Motoren Werke AG also known as BMW is a German firm that produces motorcycles and upscale automobiles. The company sells vehicles under three brands: BMW, Mini, and Rolls Royce. In 2007, the firm had profits of €3.134 billion on sales of €56.018 billion.[1]
[edit] Trends and Forces
[edit] Shrinking Margins
BMW makes the most money selling its larger more luxurious automobiles.[2] Yet as Oil Prices continue to increase BMW has responded to consumer demands by producing smaller vehicles such as the 1-series, mini cooper, and compact X3 SUV. Over the past several years sales increases for these smaller vehicles has been the main driver for the company's overall sales growth. As a result BMW's margins have been shrinking for the past decade, being 9.2% in 2002, 6.4% in 2007, and expected at about 4% for 2008.[3] This trend toward smaller cars is expected to continue as energy prices remain high, presenting a challenge for the company's long term level of profitability.
[edit] Competition
U.S. Market Share Data
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Worldwide Auto Market Share Data
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