Industry assignment 2 Example | Topics and Well Written Essays - 2000 words

Industry 2 - Assignment Example (See Appendix I – Summary of BMW Group’s Sales as of November 2010 on page 10) This report will focus on analyzing the business strategies used by BMW Group. Using Porter’s generic strategies, strategic choices of BMW will be identified followed by identifying the key resources and capabilities of BMW in support to its strategic choices over the past five years. After evaluating how BMW’s strategic choices has lead to the development of sustainable competitive advantage, this report will discuss the extent of BMW’s ability to meet the critical success factors for the automobile sector over the last five years. Prior to conclusion, criteria of â€Å"Suitability, Feasibility and Acceptability† will be used to further evaluate BMW’s current strategies against possible future competition in the global market. brand as automobiles that offers the users a â€Å"cutting edge technology† combined with unique designs that makes the cars different from other regular automobiles (Rolls Royce 2010). This strategy enables BMW, MINI, and Rolls Royce demand a premium market price for its masterpiece. As explained by Porter (1985, p. 11), â€Å"the fundamental basis of above-average performance in the long-run is sustainable competitive advantage† for the company. In other words, the ability of BMW Group to sell its automobiles higher than the average market price enables the company to have a competitive advantage over its competitors. One way or the other, this factor made the company more successful over the past five years. Using Porter’s generic strategies, it is possible to identify the strategic choices of BMW Group. Within a broad market scope, BMW Group was able to create competitive advantage over its competitors because of its differentiation strategies (Porter 1985, p. 11). As part of BMW Group’s differentiation strategy, the company manufactures unique luxury and high performance automobiles by investing on new