Recommendations We have selected recommendations for BMW to follow. First of those three is to increase a focus in strong markets like China and the USA. Though there is a larger opportunity for growth in the Chinese market, BMW can focus more efforts in the US as well because of a steady market and lower production cost. BMW has more manufacturing facilities located in the US that will help reduce additional shipping costs thus driving more profit. With these profits, the company can than focus on a new type of distribution or even a location of a facility within the Asian market borders. This will give BMW a strong foothold and show for a steady increase in profits from both markets. This strategy may be one of the easiest in terms of cost. Though building a new facility would call for a large financial hit, the increased revenue generated between the continuing US sales as well as the potential that will come in from the Asian market would easily compensate for the cost. The second recommendation is to increase focus in the quality of vehicle production to increase reliability. One of the pitfalls to the BMW brand is the amount of recalls it has. Though the number of recalls from BMW are comparable in number to many of its rivals, one way to rise above the competition would be to increase the quality of production. In doing so, this would increase the reliability of the parts within the vehicles and reduce the amount of recalls. From a financial standpoint, this may be one of the more expensive routes. Increasing quality means spending more time in production and making sure that the systems in place work properly. However, with a restored reputation and actual facts showing the reduced recalls and increased quality, this could attract many new customers that had formerly purchased other luxury vehicles.
Recommendations We have selected recommendations for BMW to follow. First of those three is to increase a focus in strong markets like China and the USA. Though there is a larger opportunity for growth in the Chinese market, BMW can focus more efforts in the US as well because of a steady market and lower production cost. BMW has more manufacturing facilities located in the US that will help reduce additional shipping costs thus driving more profit. With these profits, the company can than focus on a new type of distribution or even a location of a facility within the Asian market borders. This will give BMW a strong foothold and show for a steady increase in profits from both markets. This strategy may be one of the easiest in terms of cost. Though building a new facility would call for a large financial hit, the increased revenue generated between the continuing US sales as well as the potential that will come in from the Asian market would easily compensate for the cost. The second recommendation is to increase focus in the quality of vehicle production to increase reliability. One of the pitfalls to the BMW brand is the amount of recalls it has. Though the number of recalls from BMW are comparable in number to many of its rivals, one way to rise above the competition would be to increase the quality of production. In doing so, this would increase the reliability of the parts within the vehicles and reduce the amount of recalls. From a financial standpoint, this may be one of the more expensive routes. Increasing quality means spending more time in production and making sure that the systems in place work properly. However, with a restored reputation and actual facts showing the reduced recalls and increased quality, this could attract many new customers that had formerly purchased other luxury vehicles.