Entry Strategies?
Identify at least two possible international entry methods that can be used by BMW, and evaluate the benefits of each method to the organization in terms of indicators such as forecasted market share, targeted market segment or possible mergers or acquisition.
critically evaluate the influence of the changing business environment on the marketing priorities and marketing management function of BMW?
Please provide references and authors
Entering international markets is a crucial step for global companies like BMW to expand their reach and tap into new customer segments. This essay will identify and evaluate two possible international entry methods for BMW and assess the benefits of each method in terms of forecasted market share, targeted market segments, and possible mergers or acquisitions. Furthermore, we will critically evaluate how the changing business environment influences the marketing priorities and marketing management function of BMW.
Exporting: Exporting is a common initial entry method for companies seeking international expansion. BMW can export its luxury vehicles to foreign markets through various channels, such as direct exports, intermediaries, or distributors. This approach allows BMW to establish a presence in new markets while minimizing the risks associated with more significant investments.
Benefits
Market Share: Exporting can help BMW gradually gain market share in targeted countries, especially in regions with a growing appetite for luxury cars.
Targeted Market Segment: BMW can tailor its product offerings to meet the specific preferences and demands of each market, thereby targeting diverse market segments effectively.
Mergers or Acquisitions: While exporting does not entail immediate mergers or acquisitions, it can serve as a stepping stone for BMW to assess market potential and evaluate potential partners for future ventures.
Strategic Alliances and Joint Ventures: BMW can form strategic alliances or joint ventures with local automotive companies in target markets. By partnering with established players, BMW can leverage local knowledge, distribution networks, and resources. This method allows BMW to share risks and benefits with local partners.
Benefits
Market Share: Joint ventures and strategic alliances can lead to a more significant market share by combining the strengths of BMW’s brand and technology with local partners’ market knowledge and distribution networks.
Targeted Market Segment: Collaborations with local partners enable BMW to tap into specific market segments more effectively, considering the local market’s unique characteristics.
Mergers or Acquisitions: Depending on the terms of the partnership, joint ventures can eventually lead to mergers or acquisitions, strengthening BMW’s foothold in the market.
The dynamic business environment, characterized by technological advancements, changing consumer preferences, environmental concerns, and geopolitical shifts, significantly impacts BMW’s marketing priorities and management functions.
Electrification and Sustainability: BMW must prioritize marketing efforts for its electric and sustainable vehicles to align with the growing demand for eco-friendly options. This includes promoting its electric models and developing sustainable manufacturing processes. Authors like Porter (1980) highlight the importance of sustainable practices in maintaining a competitive edge.
Digital Transformation: With the rise of digital channels, BMW needs to adapt its marketing strategies. The integration of digital technologies, as discussed by Kotler and Armstrong (2017), is essential for personalized customer experiences, data-driven decision-making, and online sales channels.
Global Supply Chain Challenges: As illustrated by Johnson and Turner (2017), the evolving global supply chain landscape necessitates adjustments in marketing strategies to address supply chain disruptions, ensuring product availability and timely delivery.
Regulatory Compliance and Emissions Standards: Compliance with evolving regulatory requirements and emissions standards is critical for BMW’s marketing efforts, ensuring that the company meets legal obligations and maintains a positive brand image (Czinkota and Ronkainen, 2013).
BMW’s choice of international entry methods should align with its specific market objectives, risk tolerance, and resources. Exporting and strategic alliances/joint ventures offer distinct benefits for market share, targeted market segments, and potential mergers or acquisitions. In the face of a changing business environment, BMW must adapt its marketing priorities to address electrification, digital transformation, supply chain challenges, and regulatory compliance, ensuring its continued success in the global automotive industry.
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