BMW in China
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Case Details:
Case Code : MKTG312
Case Length :21 pages
Period :-
Pub Date : 2013
Teaching Note :Not Available
Organization :BMW group, BMW Brilliance Automotive Ltd. (BBA)
Industry :Automotive Industry
Countries :China, Germany
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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ABOUT BMW
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The history of BMW can be traced from its roots in 1913 when Karl Rapp (Rapp) established ‘Rapp – Motorenwerke’ to manufacture aircraft engines. Close to Rapp Motorenwerke was Gustav Flugmaschinefabrik, a set-up for building small engines, established by Gustav Otto (Otto). Rapp bought four-cylinder water-cooled engines from Otto’s factory. Later on in 1916, Rapp Motorenwerke and Gustav Flugmaschinefabrik merged to form Bayerische Flugzeug Werke (BFW). Under the direction of Franz–Joseph Popp (Popp), an Austrian engineer, the company secured many military contracts during World War I and expanded rapidly.
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In 1917, Rapp dropped out of the company. The same year, BMW GmbH produced its first aircraft engine, the Type Illa. It incorporated a unique ‘high altitude carburetor’ developed by Max Friz, the chief engineer. The German government was convinced by Popp to purchase the Type Illa engines. In 1918, the BMW engine showed remarkable performance and this created a great demand for it. In the same year, BMW GmbH became BMW AG. However, with the end of World War I, BMW’s sales dropped abruptly....
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