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Problem Statement BMW is the upper class car manufacture in the world It has its best branding strategy and technology However due to the entrance of Japanese car manufactures in US auto market there are basically two problems that BMW needs to fact in order to stand its position and status in US auto market First of all Japanese auto companies create high-performance cars to wrestle the luxury car market and they are cheaper price and lower cost of maintenance Secondly Japanese auto companies have serve the best quality of service and the up-to-date technology to compete German cars Executive Summary In order to rectify the problems that Japanese companies brought BMW must take some actions regarding this It needs to put a much greater emphasis on the quality of customer service This would help BMW to have the long-term relationship with customers which can gain the sustainable competitive advantage Company Background Bavarian Motor Works - The Ultimate Driving Machine is also known as BMW and it is the English translation from Bayerische Motoren Werke Bayerische Motoren Werke AG German manufacturer of automobiles motorcycles and aircraft engineer Based in Munich Germany the company is the leading auto exporter in Europe The English translation of the companys name is Bavarian Motor Works wwwusedcarmartcoukbmwphp It was founded as an aircraft engineer manufacturer in 1916 BMW has been dramatically affected by social political technical and economic change The company enjoyed success during World War I After the war ended the Treaty of Versailles forced severe restrictions on aircraft construction In an effort to survive BMW used acquisitions and joint ventures to move into the production of motorcycles and automobiles In order to compete with industry power BMW introduced its building block concept of auto development Based on a family of automobiles with interchangeable parts and common body designs this concept allowed production flexibility and provided a foundation for a strong marketing concept BMWs philosophy is to build driving
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