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Essay / Research Paper Abstract
A 32 page paper discussing changes in the global auto industry and how BMW has both affected those changes and been affected by them. The continued slow demise of Detroit's auto industry and the growth of "transplant" factories of "foreign" cars in the American South has contributed to an emerging shift in the global industry. BMW has been a part of that shift: its South Carolina facility is the only site of manufacture for its SUVs, most of which are sold in the US but also are sold in other parts of the world. BMW has made some missteps in recent years, but apparently none as large as its primary competitor, Mercedes. As Mercedes strives to catch up, BMW continues winning market share. The paper discusses the issues in terms of Porter's Five Forces, strategic group mapping, identification of current and future trends. Includes 3 charts and one table. Bibliography lists 17 sources.
Page Count:
32 pages (~225 words per page)
File: CC6_KSbmw2002.rtf
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Unformatted sample text from the term paper:
There is a subtle arrogance in the US that has the effect of placing the US at the center of any industry, and particularly that which manufactures autos.
In the case of the global auto industry, however, that unthinking assumption holds true. The global auto industry is changing, but the US continues to be the largest market
for new cars. That fact makes the US attractive to automakers based in several nations, but those automakers have shifted strategy in recent years. In the case of
BMW, its South Carolina facility is the only one in the world that produces its high-end SUV. This places production into the geographical area in which the company expects
the highest level of sales for the model, but keeps manufacturing contained in a single facility so that it is not duplicating efforts elsewhere.
Of course BMW seeks to increase sales year on year, but it does not and never has sought to achieve any significant portion of share of the mass market.
It does seek to increase its share of the luxury and high-end markets in developed nations, however. Pursuit of this end has resulted in the introduction of several
new models over the past few years, models that represent a departure from traditional BMW styling yet retaining the BMW excellence in engineering and manufacturing for which the company is
so well known. The company has embraced these new directions without abandoning the traditional models on which the companys reputation was built.
Whereas other manufacturers make the fatal mistake of abandoning the very market segment that made them successful, BMW continues to serve that core segment well as it seeks out other
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