Abstract

The case looks at successful 10-year run of Germany-based automobile manufacturer BMW in China and discusses the strategy the company adopted to succeed there. BMW entered China in 2003 through a joint venture with a Chinese company Brilliance China Automotive Holdings Ltd. which was a leading automotive and automotive component manufacturer in China. It started its operations as BMW Brilliance Automotive Ltd. (BBA) and over the years, introduced several of its popular models in China. Some of these models were imported while the others were manufactured locally. The company also developed a huge and distinct distribution channel in the country, which also contributed to its success. By August 2013, the sales growth of the BMW Group was much greater than that of competitors like Audi and Mercedes. The case discusses BMW’s marketing strategies in China and details the strategies which helped it outpace the competition. It concludes with the challenges that the company faced in China due to growing competition and the government, which hampered BMW’s plans to expand its production capacity.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the strategies followed by companies from developed countries when they enter developing countries and emerging economies.
• Understand the issues and challenges confronted by established companies in the face of changing market conditions and customer demands.
• Analyze how political and bureaucratic decisions can influence the strategies of companies.
• Recognize how companies need to localize products to suit the needs of new markets

Keywords

Automobile Industry, BMW, BMW Brilliance, China, Premium cars, Distribution / Dealerships, 5S dealership, Localization, Challenges, Sedans, Intellectual Property Rights, Imported luxury cars, Long Wheelbase