BMW SWOT analysis- And its competitors


In this article, we will see the BMW SWOT analysis and its competitors. Before that let us see the journey of BMW.

BMW-A journey

 BMW, also known as Bayerische Motoren Werke AG, is one of the most famous and renowned brands in Germany which produce premium quality cars and sports bikes. The company was created in 1916 as an aviation auto company.

It manufactured motors from 1917 to 1918, as well as from 1933 until 1945. Automobiles are sold under the BMW, Mini, and Rolls-Royce brands, while motorcycles are sold underneath the BMW Motorrad brand. BMW was the fourteenth largest automaker in the world in 2017, with 2,279,503 cars manufactured. The firm has a rich history in racing as they heavily participate in formula one racing with their sports bikes and cars.

BMW was earlier known as Bayerische Flugzeugwerke AG which was formed in 1916. Bayerische Motoren Werke (BMW was adopted after six years of performing in the market. The acronym BMW, on either side, dates back to 1913, when Karl Rapp founded Rapp Motorenwerke GmbH, the first enterprise to use the brand.

After World War I, BMW continued to manufacture motorcycle engines, agricultural tools, household products, and railroad brakes. The BMW R 32 became the company’s first motorcycle in 1923.

BMW has manufacturing facilities in Brazil, China, the Indian subcontinent, Mexican cities, the Netherlands, South Africa, Europe, and the United States. Following brothers Herbert and Harold Quandt’s investments in 1959, which saved the firm from collapse, the Quandt family has been a long-term stakeholder, with the shares held controlled by the share market float. Automotive, Motorcycles, and Financial Institutions are the three divisions of the BMW Group.

Automobiles are the most significant category, accounting for over 75% of total operating income, whereas motorcycles account for less than 5% of earnings.

Through partnerships with local financial institutions, the Financial Service sector provides leases and funding to customers. BMW has about 30 manufacturing facilities in 15 countries, with 45 sales offices and wealth management sites.

SWOT analysis

BMW’s SWOT analysis looks at the qualities, flaws, potential, and risks. The independent factors of a BMW SWOT Analysis are advantages and disadvantages, while the exterior aspects are strengths and weaknesses. SWOT Analysis is a tried-and-true management paradigm that allows a company like BMW to evaluate its company and productivity against its rivals. BMW is one of the most well-known automotive brands.


1. Driving a BMW is a one-of-a-kind experience because of the engineers working in automated and blissful experiences. 

BMW has geared its invention toward pace enthusiasts who want the pure pleasure of managing the machinery, commencing from the first aviation motor with aluminum pistons in 1917 and concluding with the first aluminum V8 engine in 1954.

BMW owners choose the brand for its precise steering, engine performance and reactivity, and best-in-class safety regulations.

2. BMW has a big client base

BMW has a big client base from managers and CEOs, to speedsters and other sophisticated personalities all around the world. Several series models distinguish BMW automobiles.

Series 5 and 7 are ideal for professionals and ladies who like a more graceful, less aggressive style that isn’t outdated and dull. Coupe versions, particularly the M-series, would be ideal automobiles for younger individuals who wish to be on the sportier side, as they have the aggressive appearance of a sporty sedan.

3. BMW can convince its clients with a wide range of budgets and demands thanks to its diverse product selections.

The Series 5, which debuted in 1972 and was intended for upper-middle-class clients, established the groundwork for today’s BMW vehicle series structure. The firm presently sells automobiles ranging in price from USD 35,000 to USD 160,000 for the base Series 7 sedan.

The M series, a high-performance line, is designed to appeal to people searching for performance comparable to that of a Porsche 911 GT3.

4. R&D activities which are their primary focus.  

BMW has 16 R&D facilities all around the world, employing 15,000 people to create new technical breakthroughs for more fuel-efficient and appealing automobiles. From 2017 to 2018, the corporation’s R&D spending increased by 12.8 percent, and this tendency is not likely to stop anytime soon.

The firm is considering expanding its reach and improving its research and development team from the ground up to provide its customers with either the security and elegance they have always craved, along with futuristic technology. 

5. The company is also well known for bikes

Apart from the car manufacturing and engine design, BMW is also well known for its bikes and is well ahead in terms of producing luxury and sporty bikes, or so-called sports bikes, which can easily achieve unmatchable speeds. This is one of the reasons BMW gets an edge when we compare it to other companies. 


1. BMW cars are not at all easy when it comes to maintenance.

Maintaining a BMW product in the real world can be quite difficult as it is quite expensive, considering their parts and engine oils. BMW production is extremely advanced, particularly in terms of motors and automobile electrical systems.

BMW automobiles and motorcycles are required to be serviced by BMW-trained dealers and specialists. Furthermore, because the firm includes luxury components in its automobiles, owners must pay high prices to purchase them straight from BMW or from a private label third-party supplier. 

2. Many BMW users may not like the self-drive mode.

BMW is developing self-driving cars at its Munich headquarters, and the firm plans to offer those new technologies, dubbed i-Next BEV, in future models.

This shift would render BMW’s slogan “Ultimate Driving Machine” obsolete, and challenging enthusiasts may rethink potential purchasing because they are the people who demand the most complete control over their vehicles.

3. BMW’s brand value as a luxury car company is being compromised by manufacturing less expensive cars.

Many people purchase a BMW as a symbol of wealth instead of a car, but they’ll have to split the designer label with vehicles priced at $30,000, the same price range as a Toyota Camry.

Instead of making cheaper products such as series 2 cars or X2 SUVs to capture the market, a company should focus on their consumers and their brand name, otherwise, they will lose many current buyers.

4. Borrowing expenses are causing a massive amount of debt in the firm, which might be irreversible if not addressed quickly.

BMW has the greatest borrowing costs in its history. Over the previous five years, it has increased substantially, reaching almost $180 billion in 2015. BMW’s greatest debt rises occurred in 2014 and 2015, owing to substantial expenditures in electrified vehicles and autonomous driving technologies. Large quantities of federal debt the company’s capacity to invest heavily in R&D or make pricey acquisitions that would allow for quicker expansion.

5. The strategy of the brand is not good with the minimum distribution of the parts.

BMW’s automobile brand portfolio comprises just three distinct brands: BMW, Mini, and Rolls-Royce. Out of a maximum of 2,247,485 vehicles sold in 2015, the business only delivered 338,466 MINI cars and 3,785 Rolls-Royce automobiles. Given that auto components account for 92.8 percent of overall BMW Group income and that the bulk of those automotive sales are only BMW vehicles, the firm is significantly reliant on sales of its luxury BMW cars.

The firm does not own any automobile brands aimed at the middle class and lower class consumers who cannot buy luxury automobiles. When business circumstances worsen, customer tastes shift, or the brand suffers a lot of unwanted press, BMW is at a deficit because of its poor automobile brand portfolio with minimal product diversity.


1. R&D funding for electric vehicles (EV) should be increased.

In terms of the market, European manufacturing equities have a strong price-to-earnings ratio, while Tesla has high earnings estimates, as seen by its sky-high share price. BMW also has an electric car, the i-series, but it is not well-known. The i3 model lacks the look and capability to compete with a Tesla, while the i8 is more suited to supercar fans than EV drivers.

As said earlier, to increase their reach and give their customers some advanced technologies just like many other companies in the market do, BMW needs to speed up their researches and provide some good automobiles. 

2. The cost of petroleum is predicted to grow in the coming years.

Fuel costs have been reasonable for several years, but they are likely to rise shortly owing to supply disruptions. The desire for big cars such as pickup trucks and SUVs has grown as gas costs have dropped. Because of their excellent SUV and pickup truck lines, several automakers, notably GM, Ford, and Chrysler, have profited from low gasoline costs.

BMW, on the other hand, has chosen to concentrate on the smaller vehicle segment rather than expanding its passenger car line. When gasoline costs are too high, the desire for compact automobiles always grows.

3. Production in China or India to cut costs can be beneficial for the firms. 

As China approaches the United States as BMW’s largest market, the firm should produce more cars in China to reduce import taxes and save transportation expenses. Only the X5 and the new electric variant iX3 are manufactured in China; the remainder is purchased from Europe and the United States.

The trade dispute between the United States and China has resulted in additional import taxes on passenger automobiles. Apart from China, India can also be a good target for the firm as it has also emerged as one of the biggest and cheapest manufacturing hubs in the last decade.

4. BMW should continue investing in other markets and gain skills, knowledge to grow over there. 

BMW has collaborations in the automobile and technology sectors, the most notable of which being the BMW-Daimler collaboration on autonomous vehicle development. In China, the company made a strategic alliance with Brilliance China Automotive Holdings Ltd. to establish BMW Brilliance Automotive (BBA), which will build BMW vehicles in the country.

5. BMW must introduce new models as soon as possible.

The frequency and amount of new model launches have a major influence on automobile firms’ share of the market. Emerging technologies have traditionally received substantial updates every four to five years, with relatively minor changes in between.

However, given growing customer expectations for in-car electronics and the company’s competitive character, there is a case to be made for releasing updated models more regularly. BMW is in a nice situation to accomplish this.


1. Lack of focus can be bad for the reputation of the company. 

Because BWM is concentrating on developing new electric vehicles, it is sacrificing sales of internal combustion vehicles, which have historically been the industry’s money maker. Electric vehicles are more expensive and have a reduced profit margin, yet they are required to comply with new pollution regulations and fight with Tesla. During the changeover period, net profitability will be severely impacted in the short run.

2. BMW can face fierce tough competition from China and Brexit in terms of import and export. 

In 2019, BMW imported about 63,000 vehicles to China and sold approximately 233,000 in the United Kingdom, in addition to constructing approximately 228,000 MINI and Rolls-Royce vehicles in the United Kingdom. Because the company’s capacity to carry on the 10% import taxes that would come from a no-deal Brexit to consumers is restricted, it will have to choose between retaining profit and losing sales volume.

3. The automobile sector is under stress to improve security and pollution requirements.

Compliance expenses will rise, putting a significant hole in the margin. Small mistakes might result in costly fines and a bad public image. Other major companies in the competition are constantly trying to improve their infrastructure and performances by bringing in more efficient cars and technologies for buyers to improve their experience. If BMW wants to tackle them in the long run, they have to focus more on electric motors and futuristic techs.

4. The automobile market in the United States is expected to stagnate or perhaps shrink.

2015 and 2016 were the greatest seasons for the automobile sector in the United States after 2007. Annually, best auto revenues have risen by about 6% on average. Even while losing customers, each automaker participating in the United States was able to sell more products. Nonetheless, the expansion of the automobile industry in the United States is decreasing. Due to an overused buzzword, new car sales are expected to stagnate or perhaps fall in the coming years, as per Ford and Gm.

Competitors for BMW

Probably one of the best business markets in the world is the automobile industry. In 2019, an average of 1.4 billion automobiles was on the road all around the world. The global automobile sector contributed approximately US $500 billion in GDP for the United States alone, a mere 2.5 percent of total world Revenue of Usd20 trillion. One of BMW’s strongest main advantages has been its high-quality cars. Although they have a strong reputation for high quality, the BMW brand is typically what sells the cars.

BMW is a powerful and quite well-known company, and its automobiles and motorcycles exude the elegance, delicacy, and performance that only pure German engineering can provide. But the competition is tough in the market along with other companies rising with other car brands, which can be a real threat for the BMW market. Furthermore, regardless of wherever they are in the market right now, any business in the globe that produces vehicles is a rival for BMW; a few of them are mentioned below:


Tesla can be the company that can be a real threat to BMW. Tesla, recognized for producing well-known electric vehicles and some unique characteristics such as auto heating and auto-drive, is reaching new heights in the automobile business, driven by our very own genius Elon Musk. Tesla’s precision and devotion to making driving easier and more automated are facilitating the company’s growth, which has subsequently influenced the company’s stock. BMW must develop such formidable opponents or risk losing their potential market.


Mercedes-Benz is a German premium vehicle manufacturer created by Karl Benz in 1926. In 2019, the German automaker made more than US$195 billion, making it one of the best-performing automakers in the world. Mercedes also operates franchises in over 17 countries worldwide and serves a staff of over 152,000 people. Mercedes-Benz manufactured and sold approximately 2.3 million cars in 2019 from its six global facilities.

Mercedes and BMW each have vehicles that stand out in a bunch. Mercedes-Benz interiors are often prettier and more luxurious, but BMW distinguishes out with bigger vehicles and cheaper overall expenses. Following the commercial success of EVs, Mercedes has begun to focus on them in contrast to the auto-drive features.


Audi, previously known as Automobilwerke GmbH Zwickau, was founded in 1910 when the car firms Wanderer and NSU combined to become Audi. The German company focuses on creating and marketing high-end automobiles. Even though Audi is a Volkswagen division, the corporate identity and reliability cannot be overestimated. Audi manufactured and consumed almost 1.8 million premium vehicles globally in 2019. The German firm has a staff of 91,000 people working in 11 locations across nine countries.

The craftsmanship and performance are exceptional, their leather interiors are opulent, and the technology is cutting-edge. Audi has a lot of investments and high-performing automobiles, and also a well-known image that makes new customers curious about their item! However, their sales are still low when compared to BMW’s, and if BMW wants to stay ahead, it must ensure that Audi does not surpass them. So they must start focusing on their EV and performance and deliver an amazing car that can make them more money. 


Dodge is an American automotive growing business that has been founded in 1900 and is based in Michigan, United States. It is well-known for producing supercars, compact cars; pickup trucks, sedans, and SUVs. Initially, the firm made replacement parts and assembled components for other autos, but they eventually began creating their vehicles.

Dodge cars have long been known for their dependability and performance. Popular models include the Viper, Challenger, Charger, and Durango. Dodge cars have a strong link with the American spirit, and as a result, they have a high level of visibility among them. Dodge vehicles have been constant in their posture of the all-terrain vehicle, with each generation offering something new. It is marketed as a high-performance car and also has a clear association with adolescence.


Range Rover is a luxury automobile brand that was founded in 1948. It is now under the aegis of Jaguar Land Rover and has been owned by Tata Motors since 2008. It is one of the best-selling all-terrain vehicles in the world. The Range Rover brand is a luxury SUV icon, and its cars have demonstrated tremendous strength and flexibility over a variety of terrains.

It has also received several major accolades for the vehicle’s capabilities. The vehicle’s greatest aspect is its lengthy heritage, which is strongly connected with its corporate image. Its close partnership with Jaguars has enhanced its reputation. Range Rover vehicles are environmentally friendly and emit low levels of pollution. Their vehicles are well-designed and have appealing interiors. The firm has been conducting extensive research and focusing on emerging technologies such as machine learning, IoT, data connection, and so on. Range Rover is a key BMW rival because of its strong automotive heritage and tight relationship with Jaguar.


Skoda is a Czech automotive manufacturer that was founded in 1895 and is based in the Czech Republic. It is a well-known automobile company known for its high-quality goods such as the Octavia, Laura, and Yeti. Customers are constantly provided with high-quality goods & services by the firm. The firm offers vans, automobiles, trucks, and SUVs, as well as maintenance services.

Customers like their vehicles, which increases their sales. Their vehicles are comfy, stylish, roomy, and well-balanced. Skoda automobiles are available with both gasoline and diesel engines. It features roomy interiors and plenty of space for travelers in between front and back seats. Their vehicles are equipped with cutting-edge technology such as EBS, telescopic power steering, MSR, anti-skid braking, and many more. The firm manufactures around 850,000 vehicles each year. Skoda is well-known around the world as a major BMW contender, owing to its excellent advertising and marketing.

Some other companies which can be a threat are 

  • Porsche 
  • Tata motors 
  • Volkswagen 
  • Ford
  • General motors 
  • Honda motors 
  • Aston martin 
  • Toyota motors 
  • Jaguar 
BMW SWOT analysis- And its competitors

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