Report on Strategic Intelligence and Analytics of BMW based on Munich, Germany

BMW is one of the leading brands and a well-known luxury car manufacturer in the Germany and it’s headquartered is based on Munich, Germany. The company is engaged in manufacturing of BMW brand as well as other brand such as Mini Cooper, Rolls Royce and the premium cars that are manufactured at a large level. The company is well known to manufacture stylish and innovative cars that all are world widely accepted by their customers and company is earning high popularity as a brand. In global auto mobile industry in 2018 and 2019, it is a difficult time period for the several brands that experienced decline in sale of cars in the history. The company has maintained its sales and revenue during this crisis because of its innovation and advanced method of production and management of the sale of cars (Lechner., 2020).

Technology and their customer’s requirement are changing during the period of time and customers have several sources that are helpful in gaining competitive advantages in the market. The competitors in the market or risk seeking to earn brand equity research development global sales distribution and other networks that could build a strong relationship in the market. The five forces analysis of BMW is based on model given by reporters to get cover values as well as entire automobile industry. Focus on these forces to get competitive advantage in the market that are explained as below:

·         Bargaining power of suppliers Strategic Intelligence and Analytics of BMW based on Munich, Germany

Bargaining power of suppliers is impacted by a different to factors that are existing in the market, such as the concentration of suppliers and ability of suppliers to integrate in the Automobile industry. The supplier emphasizes high comparability between the buyers, offer different components, and work for the better distribution of raw material. BMW works with 12,000 suppliers that are differently based in 70 countries and providing raw material to the company. The main purpose of partnership with BMW is to get better and brand operating in the market and become well-known suppliers of the company. There are some BMW suppliers that are impacted with the name of local markets and their bargaining power is impacted by different factors. It is commonly known that BMW is a leading brand around the world and they are highly profitable for any kinds of suppliers who are providing the raw material. Supply chain of BMW is get some moderately low ended company is enjoying strong brand equity on the international level and the customers are attracted to the product.

·         Bargaining power of customers of BMW based on Munich, Germany

Bargaining power of customer is also a significant factor that could affect the sale and profitability of any company on the international or a national level. There are different kinds of factors that affect bargaining power of BMW. It has grown and increasing the competition in the regulation and changing trends that are is switching to low cost. The customers are well known and conducting research before purchasing the product and they have different kinds of option in the market to select better one. High competition in the market adds value to the bargaining power of the customers and it also competes to grow market share in the Market share of customers. The main focus of customers is to get know about the core focus of luxury brand and get some high value in low cost. The bargaining power of customer is based on brand equity, quality, technology and experience. In short, the bargaining power of BMW customer is moderately high (Vater, Harscheidt, & Knoll., 2019).

·         Threat of substitutes of BMW based on Munich, Germany

Different factor take into consideration in the profitability of any company or brand. The high substitutes in the market or a threat to get the customer demand shift on the other brand and it could be a threat for the company. As concern with threat of product for BMW is based on several sources that are moderately happening in the market. The major substitute of BMW includes the brands that are existing in the market and to get alternative transportation sources. The competitors in the market are the Land Rover, Toyota, Ford, Mercedes, Austin and other sources that are manufacturing Automobiles. The main domain of BMW is to make stylish cars that are owned by luxury class and elite class. Furthermore luxury cars are more convenient and comparatively better to get customer experience and passenger safety is considered at the first. The overall threat of the disputes in the market to made BMW is considered as moderate and high popularity of Owners and other substitutes are available.

·         Threat of new entry of BMW based on Munich, Germany

For any brand working in the market, also have a threat of new entrants in the market and the brand is turn down by customers therefore the threat of new entrants are very low for BMW. There are entry barriers in the market that is not easy to cover therefore renew brands are difficult really enter in the market. The existing brand in the market or most likely to get to competitive advantage in the market therefore new brand have to make different capital investment with strong sources are to get the competitive advantage in the market. Besides this is the BMW have no very low threat of new entry in the market as there is a lot of investment required to build such kinds of production plant and distribute network to get the brand equity like BMW.

·         Rivalry of BMW based on Munich, Germany

There are also several rivalry of BMW in the market, such as Ford, Toyota, Tesla and Land Rover. It is explained that new competitors could not enter in the market, but it is threat on the branded that existing brand as they could progress and invest in the market to produce innovative vehicles that could be a threat for the BMW. These brands are focusing on the customer experience and technological innovation and if they could take place. If with the help of digitalization and they’re producing safe models. The instant intensity of BMW is sustainable and to get the customer experience they need to get a lot of investment in research and development. Overall intensity of rivalry for BMW is very high.

2.      Explain how Business Intelligence and Analytic tools can be used to understand the market and to support the strategic planning process at the new company. Explain 5 common challenges when implementing Business Intelligence and Analytics tools.

Business analysis of any company refers to the sources that could be used to help through perform the task on different perspectives. It adds to ensure that the company has identification and documentation to verify them requirements of the targeted demographics according to the customer’s requirement. Analysis tools could be obtained from different sources to analyze the business and manage the process and findings that are relevant to the brand. The analysis are based on different elements such as descriptive analysis, diagnostic analysis, predictive analysis and perspective analysis. As far as concerned with business intelligence, it is a forward thinking of optimization that is used to get capabilities and innovation in business intelligent solutions. With the help of with business intelligence it is possible to get post efficiency and optimization of inventory levels to reduce the waste and other communication development for the business. There are different challenges that could face do while implementing business intelligence and analysis of BMW (Marr, 2016).

·         Too much expensive and hard to justify return on equity

The budget of BMW is not too much lower that could not afford the cost of analysis and business intelligence implementation in the business. But it creates high cost for the business and it is considered too expensive in such kinds of cost. If BMW could innovate its product and input on an infrastructure of analysis impractical BMW are getting business intelligence to improve operational efficiency and to overcome the expense of manufacturing. It is based on the requirements of the board and investors who invest in the projects of production (Kozlovskyi, Shaulska, Butyrskyi, Burkina, & Popovskyi., 2018).

·         Lack of wide adoption of BMW based on Munich, Germany

There is lack of wide resources adoption by the company as the elements that are working in the company is already fixed ended the business intelligence challenges are essential to gain stakeholder’s information on the same platform. So the key performance indicators are not able to change and the clear objectives of the company could not be attained. It is not easy to adopt, are different kinds of analysis and operations of business intelligent that could be implemented by BMW.

·         Analysis of data from different resources

It is not easy and beneficial to analyze the data of company from different sources as it is a big challenge. The BMW is most likely to concerned with the innovation and advancement of the course and therefore the analysis of data from different resources is not suitable for the company to get multiple system to inform the customers need and demand in the market. Companies are adopting innovative tools for business intelligence and addressing the problems that could be faced by the companies by adopting these analytical tools.

·         Business measurements are not according to the indicators

Older business results are not based on the indicators therefore, analysis of different indicators scored result in misrepresentation of different kinds of resources in the company. There should be comprehensive business plan to gain success in the market and it is significant to get appropriate range to measure the progress and performance. All the indicators are not the same to doctor different kinds of analysis in the market.

·         Self Service Analysis

The biggest challenge to adopt business intelligence and analysis tools is facing different kinds of genuine self-services of the company. The data of business intelligence and analysis are based on the different navigation so that, technically it could be implemented by the better analysis.

3.      Based on the Balanced Scorecard, derive and explain 2 critical success factors for each of the 4 dimensions of the balanced scorecard (a total of 8 critical success factors). Graphically illustrate your findings in a linked strategy map.

The Balance Scorecard is extremely impact able management tools in the companies and around the world. It is being used for the basic level of basics scorecard that helped the optimization to get clear strategies and communication between different companies working in the market. As for concern with the perspective of balanced scorecard, there are rare 4 dimensions it on with balanced scorecard based. (Morabito, 2015).

Financial perspective: BMW is most profitable organization that comes up with them high productivity and profitability in the market. The key objective of BMW’s financial health and performance is, including with the perspective of finances. The revenue and profit generated from BMW is including good cost saving and profit margins for the company.

Customer perspective: Emphasize on the performance and objectivity of the customers in the market. It adds to achieve financial objectives that our company fixes you to achieve in a given time. The main objective of customer perspective is to get customer satisfaction and market share with the help of brand awareness.

Internal perspective: The internal perspective originated with the internal improvements and business methods of company in which the company is performing all the functions. The internal process is based on improvement to offer quality and quality optimization as well as with capacity utilization.

Growth perspective: This perspective is about the intangible drivers of performance and considered as the final perspective about the company. It is based on human capital, such as human skills talent of workforce that is working in BMW Corporation. It is also based on information capital of different kinds of Information System networks and technology. All the dimensions of organizational capital such as culture, leadership, employment and teamwork, are also based on the growth perspective of the company.

The Balance Scorecard perspective could be easily mapped out on falling visual map and it could be used to different methods to visualize the balance scorecard of any organization. Balance scorecard perspective includes the overall purpose of BMW and key competition objective in the market (Scanlon., 2008).

References of Strategic Intelligence and Analytics of BMW based on Munich, Germany

Kozlovskyi, S., Shaulska, L., Butyrskyi, A., Burkina, N., & Popovskyi., Y. (2018). The marketing strategy for making optimal managerial decisions by means of smart analytics.". Innovative Marketing , 14 (4), 1-18.

Lechner., P. (2020). BMW: Process Mining@ Production.". In Process Mining in Action, pp. 65-73. Springer, Cham .

Marr, B. (2016). Big data in practice.

Morabito, V. (2015). "Big data and analytics. Strategic and organisational impacts .

Scanlon., J. (2008). An investigation into the feasibility of the use of Google Earth as a marketing tool with focus on green business environment in the BMW region of Ireland.

Vater, J., Harscheidt, L., & Knoll., A. (2019). Smart Manufacturing with Prescriptive Analytics. In 2019 8th International Conference on Industrial Technology and Management (ICITM), pp. 224-228. IEEE, .