Question

External Analysis for BMW

- Remote and operating environmental analysis

-Industry and competitive analysis

Answer 1

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Remote and operating environmental analysis

Because of the increasing expense and insufficiency of nancial capacity, many in Singapore have been reducing budgets and are forced to re-evaluate their expenditures, which further translates into needing a budget while making buying decisions whether small or large. As more prospective customers adjust their purchasing patterns due to unnecessary expenditure restriction, they continue to rethink overly expenditure on a vehicle, resulting in a decline in sales of BMW's cars and bikes, which means that BMW's spending would decrease. A new survey conducted by Nielsen and commissioned by NTUC Income has shown that young adults in Singapore are inspired to start preparing for their retirement when equipped with information. With such a mentality, BMW could see a drop in the number of prospective customers as more consumers will appear to be more likely to ensure a future of nancial security than to invest their money on expensive goods like BMW vehicles. This will result in a decline in revenue and profits for the company, causing more challenges for the companies in terms of selling their goods. BMW is able to retain its reputation in such a secure corporate climate and can use the opportunity to develop their market unlike companies in countries with a hectic political or social climate.

Industry and competitive analysis

The automobile industry is comprised of various rival companies vying over future customers and selling incentives. Although BMW has a reputation for manufacturing superior quality vehicles with improved technology, many of its rivals seek to meet the simple needs purchasers are looking for in a motorcar, e.g. Honda, Mitsubishi, Toyota and. Although these automobile organizations do not have the best features a car has, they aim to capture buyers' needs instead of capturing the wanting like BMW. As for the external conditions that influence the sector as a whole. Generally, I believe like BMW has an advantage over other automotive manufacturers in this market when comparing the specifications of different vehicles because BMW has a more in-depth program and is still utilizing more sophisticated automotive technology. As one of the world's best brands, BMW has carved a name that makes it a premium automotive brand and will be more sought after in terms of branding and logo. The external climate under which BMW works is fairly a positive atmosphere with lots of resources to develop for their company.

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