Free Essay Sample «BMW Differentiates Itself»

Due to sophisticated methods of production in the robotic-manned factories BMW has been able to produce quality vehicles by bonding hundreds of components through the modern technology. BMW differentiates itself from the other rival manufacturers in Europe, Asia and America to be the world class super car. In order to customize each car as required by the user, the company needs a logistic system that is highly sophisticated. Stationed at even intervals on the production line, the workers reach back for components in wire baskets that have been thoroughly sorted in the correct sequence. The BMW plant is designed in a manner that new production process can be added in the system in order to meet specific customer requirements without disrupting the flow of work.

1. Customized Product

According to the BMW’s official website, the company has managed to differentiate its products in the industry by providing models that are fresh and high-edge every year. The company’s differentiation strategies have been very successful in producing a competitive advantage as illustrated in its website (www.bmw.com). In order to remain competitive, BMW designers are given the freedom to develop a design after a rough idea of the product is presented to them by the customer through the website. This empowers the designers to make necessary changes to advance the design making each model better than the preceding one as described in the company’s website ‘peace of mind’. 

This is one of the most applied principles in BMW differentiation strategy. Being a market leader the company has to undertake expensive research to understand the needs of the high-end motor vehicle users and do more to surpass their demand.  For instance, due to innovation, the company has a portal (Build Your Own) in their website where a customer can order a customized vehicle by just selecting the design they want. Under the tab ‘Build Your Own’, BMW provides the user with an option of making a selection on the following aspects: series, color, body style, engine capacity, drive train, fuel efficiency and type. For instance, BMW i8 innovation is available across the BMW production line. This closeness to customers’ needs make BMW a user friendly motor manufacturer.

2. Innovation and technology

BMW and technological innovation are longtime friends.  In 2004, the motor vehicle manufacturer broke news by integrating an Apple iPod application in its car thus bringing a playlist behind the wheel to life. However, in 2014, it bumped into its multi-tiered entertainment system through the BMW connected drive. This is an infotainment system that enhances navigation by seamlessly connecting the user’s smartphone to the vehicle. The brain child behind this technology is iDrive from Apple Inc (http://www.bmwusa.com/search.aspx?q=idrive). It links the vehicle controls with the entertainment, communication, navigation and information system which reduces the number of distractions to the driver and eventually minimizing accidents.

3. Sustainability

The company has taken concern in providing sustainable environment through innovation. The BMWi is one of the unique models that BMW has reinvented to provide an emission free engine to the environment. The company responds to a plethora of emerging questions in the transport sector in relation to the conservation of energy. This is why the BMW sustainability index made the company a leader in 2005 by the Dow Jones Sustainability index. Due to this, BMW is the most sustainable company in the motor vehicle industry. Through the use of Efficient Dynamics, BMW has set a goal of offering a continuous emission reduction while increasing the driving pleasure. In all its aspects, BMW products are based on sustainability from design, production and marketing and also from the useful life of the vehicle up to its disposal (http://www.bmw.com/com/en/insights/corporation/bmwi/sustainability.html).

In conclusion, due to these explanations, BMW has a reason to believe that their differentiation strategy has been successful in creating a competitive advantage in the industry. This is because its innovation strategies are on top of the market. The company also encourages their engineers and designers to come up with new models that can take the company’s core competence ahead of others in the industry. Lastly, the company is very vocal in addressing the issues of environmental conservation through sustainable management in production.