Abstract

The case examines the growth of BMW, a business conglomerate based in Germany, into one of the leading automobile producers in the world by the 1990s. It critically examines the circumstances that led to the acquisition of the Rover Group by BMW and discusses the problems that surfaced after the acquisition. The case discusses the restructuring initiatives taken by BMW after the sale of Rover - particularly the product offensive strategy adopted by the company. It examines the results of the restructuring and discusses the future of BMW in the light of competition in the premium segment of the automobile industry and potential roadblocks caused by its strategies.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Trends in the premium segment of global automobile market.

Keywords

BMW, conglomerate, Germany, automobile producer,1990, acquisition, Rover Group, restructuring, sale, Rover, offensive strategy, results, restructuring, BMW, premium segment, automobile industry, roadblocks, strategies