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  • Essay / BMW Case Study: BMW's Path to Globalization - 2091

    The history of BMW must be inspected like that of any automobile manufacturer, in that it is a product of its times. BMW was born in the era of globalization regression, a time when people sought to buy locally and support their local economy. Although the company could only really serve the devastated post-war German economy, it survived. It would be entirely logical to think that BMW's experience after World War II would be similar to its experience after World War I, difficult at first but steady growth. However, this was not the case. Because BMW was restricted by the Allied Powers after the war, it was at a serious disadvantage in competing in the automobile industry when it would be permitted to do so a few years later. BMW's success in the late 1940s and early 1950s came from its motorcycle sales, because the Allied powers allowed it to make motorcycles and because the postwar German economy was a Once more devastated, people could not afford cars and many opted for motorcycles instead. This was clearly unsustainable, as the German and European economies would eventually recover and people would start buying cars again. When this happened and BMW attempted to return to the automobile industry, it struggled. Although she was able to position herself to some extent in “luxury” status, she was still not in a privileged position. BMW was trying to sell BMW quality vehicles (even though BMW quality in the 1960s was significantly lower than today) at Ferrari prices. The company was very concerned about its image and was looking to move more into the luxury vehicle market, but at the same time realized that innovation (in reality, globalization) was