Competitive Analysis Of BMW Z3 Roadster

COMPETITIVE ANALYSIS 

BMW being a premium car manufacturing company has its major competitors drawn from the high end manufacturers in the Automobile manufacturing industry. Among the major direct competitors that BMW and the new car (Z3) faces in the market include: Mercedes C-class range, Porsche boxsters, Acura RL, Lexus, Volvo, Cadillac, Jaguar, Audi and the Land rover cars which have dominated the market for years.(p.412)

Among the above named companies in the automobile industry, Acura and Lexus were basically the major competitors of BMW in the early and mid 1980 when the companies worldwide sales hit a low of 2788 units between 1984-1989, as compares to 3365 units sold between the period 1990-1995, after the company revamped its operations and was able to re brand and recapture back its market share. (p.396)

In an attempt to improve its competitive position in the world market the Germany car brand, BMW has made considerable measures to outwit its direct competitors in the world market and also meet the needs of its customer’s effectively. In launching its new Z3 Road star, the company decided to trade off from the traditional modes of product launching and promotions that have been used in the industry form many years by their competitors. In order to bring in some uniqueness, BMW decided to use the unexploited movie world to first show case its Z3 Road star in the movie, Golden eye, with James bond which was a huge success to the company as it coasted three times less as compared to the traditional media launch programs, thus giving the company a competitive advantage in the market. (p.104)

Equally the company sought to position the Z3 Road star in the global market as world brand rather than a German brand, by manufacturing the car in South Carolina in the United States rather than in the Bavarian woods-Germany. This paradigm shift was not only to show that the company was not just a German company but one with considerable capability to produce in any part of the world and compete effectively. Manufacturing the Z3 car in South Carolina was also to enable the company reduce its manufacturing costs from the high production costs in Germany to considerably low production cost in South Carolina thus being able to compete effectively with the US firms that manufacture in the United States.(p.397)

In order to outwit its competitors mainly Mercedes and Porsche who provide nearly similar cars for the high end luxury car market segment. BMW decided to compete on prices and caught its competitors unawares with its considerably better priced Z3 Road star, by pricing the car at just bellow $30000 which was more affordable than the Porsche and Mercedes cars in the market. (p.412)

Apart from the direct competitors in the market, Z3 road star may also face indirect competition from other sources in form of any company or product that targets the luxurious end of the market in offering transport and mobility efficiency. Companies that provide luxurious transport modes like, luxurious car lease and hire companies and choppers that may be hired by one instead of purchasing his/her own car may in a small extent also eat into the market share of BMW.

In conclusion it is imperative to note that, as the competition within the automobile industry increases, in future, competition would be solely based on product features and pricing, and automobile manufacturers who will succeed in the market are those who will produce the best cars in terms of technology and environmental concerns, while minimizing on costs that will culminate into lower automobile prices.