Milestone 1: BMW
Justin Burleson
ECON 230 Macroeconomics
Professor Bajah
March 27, 2022
Company Overview
BMW or otherwise known as Bayerische Motoren Werke AG, has become the world's leading provider of premium products and services for an individual. This leaves BMW as one of the largest companies in the automotive industry. BMW was founded in 1916 by Franz Josef Popp, Karl Rapp, and Camillo Castiglioni, and they were mainly a manufacturing company that produced air plan engines. Looking at BMW, one might think that BMW was always a blessed company, but after world war 2, Bmw received a bad rep and had to quit manufacturing products that involved a combustion engine. This left them with making and producing pots, pans, and bicycles until after the war due to one of the main factors being bombed. For BMW to get where it is today took hard work and dedication.
Comparative advantages
With BMW having a bad rep after world war two, it is surprising how far they have risen over the years. BMW is constantly improving there process and looking for new ways to improve the process. Continuous process improvement and technical advantages have everything to do with the R and D being their core image. BMW is always known for its luxury and well-made vehicles that appeal to the upper class as a symbol but are known by everyone for the quality and reliability of their motor vehicles and their top-of-the-service customer service to their customers.
supply and demand
Like any automotive maker, it is up to the economy and the customer to determine the supply and demand. Demand is the consumer's willingness to purchase the product at a particular time, while supply is the willingness of the automaker like 02BMW to manufacture the consequence that the consumer primarily desires. One of the factors affecting Bmw's demand and supply would be the consumer's taste and preference of which product they want. For example, the BMW 3 series is the benchmark in the market car in the luxury car industry because many companies base their prices on this. After all, it was one of the most desired mid-level sedans.
GDP
The world's economy significantly impacts BMW. It was a national business. It is easy to see how they can be affected by each country. For example, even with the chip shortage and covid, BMW still has a tremendous economic impact on the united states Bmw invested 12 billion dollars into the plant located in South Carolina, which has created thousands of jobs. At the same time, allow suppliers to relocate closer to allow faster delivery. With BMW taking the time and money to invest in the United States operations, it will ensure that the area's GDP is maintained, which allows them to manufacture and produce more vehicles.
Conclusion
BMW has been a very successful company and will continue to grow and change as the economy changes and grows. What is impressive is that BMW's annual economic impact on the united states totals around 43.3 Billion dollars. Overall, BMW is here to stay to improve the luxury automotive industry and to continue to grow and help the south Carolina community.
Work Cited
Bhasin, H., & Zethembe. (2018, September 7). Marketing strategy of BMW - BMW Marketing strategy. Marketing91. Retrieved March 28, 2022, from https://www.marketing91.com/marketing-strategy-bmw/
BMW demand and supply case study example - studentshare. (n.d.). Retrieved March 27, 2022, from https://studentshare.org/macro-microeconomics/1446238-choose-one-product-service-of-a-popular-company-or
Bmw. (2021, December 15). The circuitous history of the BMW name and its rise to a global brand. How the BMW name was created | BMW.com. Retrieved March 28, 2022, from https://www.bmw.com/en/automotive-life/BMW-name-meaning-and-history.html
History of BMW. BMW. (n.d.). Retrieved March 27, 2022, from https://www.bmwakron.com/bmw-history-bmw-dealersip-near-me.html
Snyder, E., Costa, M., & Ward-Crixell, K. (2022, January 13). BMW mission statement 2022: BMW Mission & Vision Analysis. BMW Mission Statement 2022 | BMW Mission & Vision Analysis. Retrieved March 28, 2022, from https://mission-statement.com/bmw/