product life cycle of BMW

 

Bayerische Motoren Werke AG (BMW)


·       introduction,

The special fascination of the BMW Group not only lies in its products and technology, but also in the company’s history, written by inventors, pioneers and brilliant designers. Today, the BMW Group, with its 31 production and assembly facilities in 15 countries as well as a global sales network, is the world’s leading manufacturer of premium automobiles and motorcycles, and provider of premium financial and mobility services.

·       Growth

The special fascination of the BMW Group not only lies in its products and technology, but also in the company’s history, written by inventors, pioneers and brilliant designers. Today, the BMW Group, with its 31 production and assembly facilities in 15 countries as well as a global sales network, is the world’s leading manufacturer of premium automobiles and motorcycles, and provider of premium financial and mobility services.

 

In the last table we can appreciate that the expectative of BMW group are improve its statement situation. First of all we have to say that in 2016 BMW want to increase the investment in R&D respect to investment´s whole, and also want to increase the Capex ratio (A ratio that measures a company's ability to acquire long term assets using free cash flow) and Payout ratio (The amount of earnings paid out in dividends to shareholders). In automotive segment we can observe different expectative that show an efficient improvement of BMW and a higher profitability.

·       maturity

over the 34 % of the BMW shares belongs to the rich family Quandt, which if we add the 12,6% corresponding to Susanne Klatten, we can look for (approximately) a half of the company’s shareholders power. This fact indicates us that the BMW Group is a very concentrated company, where few shareholders own a big influence in the group decisions. In another hand, if we talk about the investor types we can say that strategic and institutional investors are so spread, although the strategic ones have a little advantage of the institutional ones. We may remember that the strategic investors are whose investors which are working or are so implicated in the company market, and the other ones, the institutional ones are for example, governments or legal institutions that are also interested on invest in some companies. Finally, we can observe in the table how the group shareholders are distributed over the world, more specifically in Europe. This section will allow us to link this section with the next one, the broad investor base of BMW over the world.

Funding is done worldwide to optimize refinancing costs and to establish a broad investor base.The broad investor base show us the great expansion process of BMW group, so it´s present in all the continents with a high level of implementation in their cultures and societies. The clearest example of the BMW group expansion interest is China, which holds a prominent position within BMW´s global ranking. The BMW group is always interested on investing in the emerging and new markets, as we have said during all the work, the group is always looking for the brand expansion and to achieve new goals as acquires a higher r market share or attack new emerging markets as the Asiatic ones.

 

·       decline.

The BMW Group announced it global sales for the first six months of 2020. Sales of course have been massively affected because of the temporary closure of retail outlets worldwide. The company delivered a total of 962,575 BMW, MINI and Rolls-Royce vehicles to customers worldwide in the first half-year which is a decline of 23 per cent compared to last year.

A total of 842,153 BMW vehicles were delivered in the first six months of the current year down by 21.7 per cent while the MINI brand sold 118,862 units during the same period marking a decline of 31.1 per cent. Rolls-Royce Motor Cars reported sales of 1,560 vehicles in the first half recording a drop in sales on 37.6 per cent compared to last year. We've already told you that BMW Motorrad  sold 76,707 motorcycles between January and June which is a drop of 17.7 per cent.

 

(note :- data is taken from various sources )

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