BMW Value Chain Analysis
BMW, the German car manufacturing firm, uses a value chain analysis to retain their years of reputation. The BMW value chain analysis is an easy example for other corporations on how to compete and improve in the market.
Every corporation has certain imperfections in it. So, it has never been easy for them to stand out in the crowd of contenders. To achieve prioritized success, every one of these has to scrap out the internal errors and problems. Yet, these issues within aren't easily seen by the controllers. For that reason, corporations need a well-organized analytic framework, highlighting activities within the network. Michael E Porter came up with a solution for the problem named value chain analysis. The name might be complex for you and tempt you to ask, what is a value chain?
It isn't as difficult as it seems. Simply put, the value chain analysis is a rational report with direct indications of company activities and improvements. The main constituents of the analysis are the individual tasks and collective collaboration that the corporation has done or is going to do in the next few years. Long story short, it is a complete workflow plan for the business. Nothing is better than an ideal value chain example for perceiving its whole knowledge. Therefore, we brought you the report of a firm that is well-versed in the market-the BMW value chain analysis.
2. Background of BMW
BMW is a famous luxury car brand of German origin. This motor vehicle production center started way back in 1917. The first product of the corporation was an aircraft engine. BMW is a multinational company that creates its products in many countries worldwide. Its general headquarters is in Munich. 2021 statistics mark the collective revenue of the corporation at €111.239 billion. Still, the net income is €12.463 billion on the list. BMW has several CEOs holding shares of the company. However, right now, in 2022, the chairman of BMW's board of management is Oliver Zipse.
3. BMW Value Chain Analysis
The value chain is not just the name of an authority-level organization. Instead, it comprises a diverse group of categories that reside in different activity sections. Considering the fact that BMW is a massive international motor vehicle provider, we can imagine the complex structure it possesses. So, the system requires several in-depth activity lookouts that only the BMW value chain can provide. We'll discuss different activities and their sub-contaminants in this section.
Similar to any typical value chain analytic report, BMW value chain analysis also has primary and support elemental actions. The primary ones look over the product's creation, instant repair, servicing, and transport. All these traits have a direct connection with customer satisfaction. Therefore, we can say primary activities impact customer retention in a company.It has several sub-sections that collectively make its framework. These will uncover what is the value chain analysis.
- Inbound logistics
- Outbound Logistics
- Marketing And Sales
Every firm needs continuous raw material supply for goods production. But getting all that raw material isn't possible from a single country. Even if you get all that, it may not be profitable. For that reason, BMW has 31 production and assembly plants worldwide. Most of its raw material comes from its hometown, which is Germany.
Even though BMW is headquartered in Munich, its operational stores are present worldwide. In total, there are 31 product-oriented service stores in 15 countries. However, its production span is scattered around the world in 140 countries. Out of these 31, eight are under the control of partners and shareholders. The remaining operate under the supervision of BMW and its subsidiaries.
The outward flow of produced goods is termed outbound logistics. Most of the operational service stores are inside Germany. But its distributors and sellers are distributed all around the world. In Germany, these stores are BMW-owned. Subsidiaries supervise the stores and manage the transport logistics outside the country.
BMW focused a great deal on marketing and sales by improving customer quality and value. Supreme build quality and exceptional pre-sale service tempt customers for the purchase. Digital and web channels do the rest of the work by marketing the products.
BMW provides a variety of motor vehicles for the customers, such as motorbikes and cars. Besides that, the firm has active relations with Rolls-Royce and mini brands for good production. As far as product quality matters, all these motor vehicles are in luxury segments and satisfy customers to a great extent. In addition, BMW value chain provides after-sale service and feedback for consumers.
Primary activities are not enough for the value chain analysis. So, Porter suggested using assisting activities. These help to increase the effectiveness and success rate of primary activities inside a corporation.
- Firm Infrastructure
- Human Resources
- Technology Development
BMW has two main divisional segments with separate manufacturing activities. One of them is the motorbike section, whereas the other one is the motorcar segment. Besides that, there is a special section of finance for HR to manage monetary features.
BMW has a massive number of employees from 110 countries worldwide. Still, the firm is trying to grow the diversity of its employees as they know it will help them stand out. BMW keeps a balanced relationship between the employees and supervisors. Plus, the firm is looking forward to hiring diverse employees with distinct abilities.
The automobile industry has had huge competition from the start. Therefore, to make yourself known in the market and retain an everlasting reputation, a corporation must keep up with the evolving research. It has big guns on the table for that purpose. BWM has 16 R&D stores all over the world. Six of these are present in their hometown Germany, where they innovate new products.
Procurement is directly related to inbound logistics. It helps the BMW value chain to keep the supply of raw materials constant. In addition, BMW has a large percentage of Eastern Europe suppliers. So, the overall cost of creation and purchase decreases.
4. How to Do a Value Chain Analysis in EdrawMax
Doing a value chain analysis is possible only if you have an ideal visualization with optimum textual knowledge inside it. Creating a visualization can be tiring if you do not know where to start. Firstly, you need an appropriate program that has all features needed for the analysis report production.
Considering that, EdrawMax is one of the choices out there that consumers prioritized in the past decade. The program has a user-friendly interface with an effective handling methodology, making it ideal for use. You can follow the given steps to analyze a value chain analysis in EdrawMax Online.
- Step 1: Gather every single piece of related information possible. Start from creating products and gradually make your way up to the sale of products and after-sale servicing. Once finished, download EdrawMax from the browser and make an account after the installation.
- Step 2: Once inside the software, you'll see a presentable home screen where you need to navigate "New> Business > Marketing And Strategy > Value chart analysis". After these sequenced clicks, you'll get a basic layout for the production. However, don't worry if you do not have enough time for work. Just click " Templates," and you'll reach thousands of free templates to choose from.
- Step 3: Once you got the desired layout on the edit screen, start by putting relevant text inside the specific fields. Try to keep the information concise and organized so you can analyze it later without any confusion.
- Step 4: Add components and change the text's color, font, and size to make it visually appealing. Moreover, EdrawMax allows you to add symbols, cliparts, and icons to make it minimal and sleek.
- Step 5: Finally, you are ready to export your analytic report. Just click "Save As" to save it in any of the 14 formats you want. If you want, you can share it in the template community by clicking the "Publish" button and naming it as you desire.
5. Key Takeaways
Visual chain analysis is the best way to keep track of your cooperation throughout its active lifespan. These can help you create direct improvements in a snap that may become the reason for your never-ending success. However, to create an ideal value chain analysis, you must first understand one. That is why we gave you a detailed overview of an ideal corporation value chain.
The BMW value chain analysis can help you create an instant and effective fix for your incompetent corporation. Plus, the treatment does not just end there. We have given you the easiest fixing program that can create this visual analytic chart and many more. Get your program now and start creating visual analytic reports for free!
Thakker, Deepkumar. BMW Value Chain Analysis_Deepkumar Thakker, [online]. Research-Methodology. Available at: https://www.coursehero.com/file/84836152/BMW-Value-Chain-Analysis-Deepkumar-Thakkerdocx/ (Accessed 21 Feb. 2021).
Pro, EMBA. EMBA Pro for Executive MBA Professionals, [online] Notesmatic. Available at: https://embapro.com/frontpage/portervaluechainanalysis/12645-bmw-ic (Accessed: 16 September 2022).