BMW vs VOLKSWAGEN: TWO LEADING AUTOMAKER COMPANIES IN COMPARISON

1. Student: Luca Buffolano
Course of Study: Economia e Commercio
Seconda Università degli Studi di Napoli
Department of Economics
ID: A09000779
Class: Business English
Date: 01/07/2014
BMW vs VOLKSWAGEN:
TWO LEADING AUTOMAKER COMPANIES IN COMPARISON

2. WHICH BRANDS ARE PART OF
THIS TWO GROUPS?
Volkswagen Group BMW Group

3. COMPETITIVE ADVANTAGE AND
MARKET STRATEGIES
BMW Group Volkswagen Group
Focused on R&D and on covering
new consumers segments.
Focused on improving its
position
in the automotive industry.
STRATEGY
NUMBER
ONE
STRATEGY
2018

4. SWOT ANALYSIS
Strengths Weaknesses
Opportunities Threats
BMW Group Volkswagen Group
PRODUCT
DIFFERENTIATION
INVESTMENTS IN
R&D AND EXTREME
INNOVATION
RIGIDITY OF PRICES
PRODUCE MORE
AFFORDABLE
VEHICLES OR BUY A
BRAND THAT CAN
PRODUCE THIS KIND
OF CARS
INTENSE
COMPETITION
HIGH
PRODUCTS
DIFFERENTIATION
NO BIG
ALTERNATIVES FUEL
TO PETROL
SEARCH FOR NEW
SUPPLIES FOR THEIR
ENGINES
BIG LOSS OF SLICES
OF THE MARKET IN
"GREEN" SECTOR
ORIGINAL MODEL

5. MARKETING MIX AND RANGE
ANALYSIS
Automotive Glossary
1. A Segment or "mini cars": includes very small cars, mainly citycars;
2. B Segment or "small cars": includes small cars;
3. C Segment or "medium cars": includes medium sedans;
4. D Segment or "large cars": includes sedans medium-large;
5. E Segment or "executive cars": includes large sedans;
6. F Segment or "luxury cars": includes luxury large sedans;
7. „Green Segment“: includes ecological cars.
WHICH SEGMENTS DO THESE TWO
GROUPS COVER?
BMW Group covers the following segments:
B, C, D (BMW and MINI), E (BMW), F
(BMW and Rolls Royce) and “Green” (BMW
and MINI).
Volkswagen Group covers the following segments: A
(Volkswagen, Seat and Skoda Auto), B, C (Volkswagen,
Audi, Seat and Skoda Auto); D (Volkswagen, Audi,
Skoda Auto and Porsche), E (Volkswagen, Seat, Skoda
Auto, Audi and Porsche), F (Audi, Bentley, Bugatti,
Lamborghini and Porsche) and “Green” (Audi).

6. CONCLUSIONS AND RESULTS
COMPETITIVE
ADVANTAGE
AND
MARKET STRATEGIES
BMW GROUP'S STRATEGY
IS FOCUSED ON
INNOVATION
WHILE
VOLKSWAGEN GROUP
FOCUSES ON A GLOBAL
GROWTH IN ORDER TO BE
LEADER IN THE MARKET .
SWOT
ANALYSIS
BMW GROUP HAS
ENHANCED ITS
STRATEGY OF
INNOVATION BUT
CONTINUES TO HAVE A
STIFFNESS OF PRICES
THAT CAN CAUSE A
LOSS OF MARKET
SEGMENTS WHILE THE
VOLKSWAGEN GROUP
HAS A HIGH PRODUCT
DIFFERENTIATION BUT
GIVES NO BIG
ALTERNATIVES FUEL
TO PETROL
MARKETING MIX
AND
RANGE ANALYSIS
BMW GROUP COVERS EACH
SEGMENTS BUT THE „A“ ONE
BECAUSE DOES NOT OFFER TO
CONSUMERS THE POSSIBILITY TO
OWN AN ECONOMIC CAR AS A
CITYCAR, BUT THE GROUP SHOWS
STRENGHT IN „GREEN“SEGMENT
WHILE
VOLKSWAGEN GROUP COVERS
EACH SEGMENT BUT SHOWS
ITSELF LITTLE EFFICIENT IN THE
„GREEN“ SEGMENT, IN WHICH HAS
ONLY TWO CONCEPT CARS