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BMW: Driving Luxury to China?

ESSEC-G-157-1
Résumé
Developments on the Chinese automotive market could change the business in the race to the crown for German premium brands. With extraordinary growth rates, car manufacturers prioritized Asian market development. More concrete, a quickly evolving segment of young, wealthy Chinese customers demanding German luxury cars seems to be a chance to compensate maturing home markets. BMW - originated in premium segments - is about to expand its luxury reach through its 7-series while, at the same time, serving the increasing demand for "affordable luxury" in all markets. However, competitors are catching up with new concepts. Whereas Mercedes-Benz always had a great proportion in the luxury segment, Audi became the market leader in China by launching several new luxury models. BMW sees the answer in the possible launch of a new 9-series sharing a platform with their Rolls-Royce cars. Furthermore, the BMW Individual manufactory launched a new, strictly limited 7-Series in corporation with silver manufacturer Robbe & Berking - the most expensive and exclusive car BMW ever crafted. To be able to win the race, BMW has to incorporate new technologies when considering the trading-up or trading-down of their model range.
Objectifs pédagogiques
Objective 1: Inspiring a discussion around the trading up and trading down in the range of luxury, super premium, and premium in the automobile market matching customer desires without diluting the original brand image.
Objective 2: Analyzing the intense rivalry between BMW, Mercedes and Audi and their diverse strategic postures and tactics to outmaneuver the others.
Objective 3: Technology as a game changer. to meet changing customer needs and tighter regulations, new models and technologies have to be introduced. For BMW, electric mobility (hybrid models, i8,...) incorporates the new definition of luxury and responsibility.
Objective 4: Analyzing China's luxury automobile market, which is very different from that in the western world. Local adjustments are not enough. Moreover, it is important to understand the different culture and attitudes.
Secteur d'activité
Car industry
2015
Livraison par lien de téléchargement
28 avec 8 page(s) annexe(s)
Oui (35 pages) - à acheter séparément

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Voir aussi ...

ESSEC-G-157-TN1
Note pédagogique
BMW: Driving Luxury to China? (Teaching note)