Rosa, D. I. D. S. (2022). Industry 4.

0 and the global automobile context: the German

situation and the specific BMW’s case until the BMW and Daimler’s Joint Venture
(Doctoral dissertation).

BMW's Approach to Sustainability and Electric Mobility

1. Strong Commitment to Sustainability:

 BMW has shown a high level of commitment to sustainability, aiming to significantly

reduce the environmental impact throughout the value chain. This includes the
production, operation, and disposal of vehicles.
 The company's vision extends to achieving emissions-free mobility through the use of
electric and hydrogen-powered vehicles.

2. Pioneering Electric Vehicles:

 BMW reinvented itself with the introduction of the BMW i-series. This line is
characterized by visionary electric vehicles, revolutionary lightweight construction,
inspiring design, and innovative mobility services.
 The BMW i3 and i8 were among the first models introduced, showcasing BMW's
dedication to creating a sustainable yet luxurious driving experience.

3. Addressing Challenges in Electrification:

 Despite BMW's investment in electrification, electric car sales initially faced challenges
such as high production costs and a lack of government incentives. These factors
contributed to consumer reluctance to adopt EVs.
 BMW has worked to overcome these obstacles by improving the affordability and
performance of its electric vehicles and increasing consumer awareness and trust in EV
technology.

4. Innovations and Technological Advancements:

 BMW continues to innovate with advancements in battery technology, extending the

range and reducing the cost of electric vehicles.
 The company is also exploring hydrogen fuel cell technology as part of its long-term
strategy for sustainable mobility.

5. Influence of Consumer Perceptions:

  Consumer perceptions play a crucial role in the adoption of electric vehicles. Initially,
sustainable products, including EVs, were sometimes perceived as having lower
functional performance compared to traditional vehicles.
 BMW addresses this by ensuring that its electric vehicles deliver high performance,
luxury, and driving pleasure, aligning with the brand's overall image.

6. Strategic Business Model Adaptation:

 BMW has adapted its business model to include the development of new electric and
hybrid vehicles across various segments, catering to a broader range of consumer needs.
 The company also focuses on digital innovations, such as connectivity and autonomous
driving technologies, which are part of the broader Industry 4.0 transformation.

7. Expanding Electric and Hybrid Vehicle Lineup:

 Beyond the i3 and i8, BMW's electric lineup has expanded to include models like the iX,
iX3, i3s, and i4, which cover different market segments and usage scenarios.
 BMW's plug-in hybrid models offer extended electric-only ranges, appealing to
consumers who seek both sustainability and flexibility.

8. Enhancing the Driving Experience:

 BMW electric vehicles are designed to provide a thrilling driving experience, with
features such as high torque and rapid acceleration, which counteract the stereotype of
electric cars being less exciting to drive.
 The company's emphasis on performance and luxury ensures that its electric models meet
the high expectations of BMW customers.

Summary of Key Points

1. Digital Transformation in the Automobile Industry:

 Digital Initiatives: Business models in the automobile industry are being reshaped by the
implementation of digital initiatives and solutions.
 Digital Business Models: Digital technologies enable interconnected ecosystems,
leading to business models characterized by time compression, turbulence, and new
architectures.

2. Value Chain and Value Network Approaches:

 Value Chain Concept: Porter's value chain concept visualizes the linkage of physical
activities and analyzes competitors and new market entrants.
 Value System: Porter's extended value chain includes the firm, suppliers, customers, and
end customers, creating interdependencies.
  Value Networks: A more complex method, value networks consist of autonomous units
operating together under common principles, suitable for inter-organizational exchanges
and relationships.

3. Changes in Firm Relationships:

 Evolving Classifications: Digitalization has made it difficult to classify industries

strictly as suppliers, customers, and competitors.
 Service Orientation: Value networks now cater to service-oriented and non-physical
industries, impacting physical products.

4. Types of Business Model Changes:

 Extension: Automakers leverage social media to respond to societal trends, engaging

tech-savvy and informed customers.
 Revision: Innovations like self-driving cars and mobility solutions illustrate changes in
customer relationships and product offerings.
 Creation: New driver services offer features like real-time navigation and vehicle
diagnostics, introducing new revenue streams through subscriptions.
 Termination: Virtualization in design and sales processes reduces planning times and
costs, with virtual showrooms enhancing the customer experience.

5. Partnerships and Relationships:

 Collaboration: Relationships with technology-related and mobility services companies

are crucial for handling innovation and enhancing user experience.
 Changing Consumer Behavior: New consumer perspectives on car ownership lead to
increased demand for car sharing and mobility services.

6. Supplier Relations and Dependencies:

 Supplier-Buyer Dynamics: Manufacturers are highly dependent on suppliers for parts,

product development, and technology.
 Subcontractor Dependencies: Many manufacturers rely on subcontractors for specific
components and services.

7. Role of New Service Providers:

 Mobility Services: New models like car sharing and diversified car rental businesses
impact traditional sales channels.
 Technology Providers: Disruptive technology providers supply essential software and
hardware for advanced vehicle features.

8. Cloud and Digital Services:

  Cloud Infrastructure: Cloud providers offer configurable computing resources and
digital marketplaces, facilitating various digital services.
 Value Added Services: Cloud platforms support telematics, safety features,
entertainment, and concierge services for vehicles.

9. Additional Services:

 Maintenance and E-Payments: Car service providers and e-payment solutions remain
vital, with new payment modalities enhancing convenience.

Conclusion

The integration of digital technologies and the shift towards interconnected ecosystems are
fundamentally transforming business models in the automobile industry. These changes
encompass the entire value chain and necessitate new types of partnerships and services,
reflecting evolving consumer behaviors and technological advancements.

Conclusion

BMW's approach to sustainability and electric mobility highlights its leadership in the
automotive industry's shift towards greener technologies. By heavily investing in electric vehicle
development, addressing consumer perceptions, and continuously innovating, BMW aims to
maintain its position as a luxury brand while leading the way in sustainable transportation.

Electric Charging Infrastructure

Overview:

 Market Context: The shift towards electric and hybrid vehicles in Germany was
accelerated by the diesel emissions scandal, necessitating a robust electric charging
infrastructure to support consumer adoption.
 Industry Evolution: The insufficient charging network presents opportunities for new
industries to emerge, potentially replacing traditional petrol stations with rapid-charging
stations in public areas.
 Strategic Response: Existing petrol station operators are primed to adapt through a
brownfield strategy, leveraging current infrastructure for electric charging stations.
 Government Incentives: The German government allocated €300 million to fund the
installation of 15,000 public charging stations, promoting e-mobility through subsidies
for both standard and rapid-charging stations.
 Technology Platforms: Platforms like 'Plugsurfing' and 'Intercharge' facilitate e-
roaming, enabling electric car drivers to use multiple charging networks with a single
access medium.

BMW's Strategic Situation

Historical Context:

 Founding and Evolution: BMW, originally an aircraft manufacturer, transitioned to

motorcycles and eventually automobiles post-WWI, surviving crises and evolving into a
luxury car brand.
 Modern Challenges: Facing reputational challenges from the diesel scandal, BMW
adapts to new market demands for electric vehicles (EVs) and stricter environmental
regulations.
 Production Network: BMW's global production strategy includes specialized networks
for small vehicles, compact models, luxury vehicles, and SUVs, strategically located to
optimize market access and reduce trade barriers.

Munich Plant and Innovations:

 Strategic Hub: Munich serves as BMW's headquarters and houses critical R&D centers,
reflecting BMW's commitment to innovation in autonomous driving and sustainability.
 Technological Integration: Continuous restructuring and investment in sustainable
practices like efficient paint shops highlight Munich's role in BMW's production strategy.
 Cooperation and Investments: BMW collaborates with tech companies like APTIV to
enhance vehicle technology and mobility services, preparing for future automotive trends.

BMW and Daimler Partnership:

 Joint Ventures: Recognizing shared challenges in mobility services, BMW and Daimler
formed a joint venture encompassing multiple brands and services (e.g., car-sharing, ride-
hailing, parking solutions).
 Strategic Goals: The partnership aims to consolidate resources, enhance service
offerings, and compete effectively against emerging mobility competitors like Uber and
Google's autonomous driving initiatives.
 Market Impact: Initial challenges, such as low demand in specific regions, prompted
adjustments in service offerings, reflecting the dynamic nature of the mobility services
market.

Conclusion: BMW's strategic evolution involves navigating challenges from regulatory changes,
technological shifts towards electric mobility, and collaborative ventures with industry peers like
Daimler. The integration of advanced technologies and adaptive strategies positions BMW to
thrive in a rapidly changing automotive landscape focused on sustainability and innovative
mobility solutions.
Nieuwoudt, A. C. (2013). An analysis of South African automotive supplier parks from a
supply chain perspective with specific reference to the Rosslyn Automotive Supplier
Park. University of Johannesburg (South Africa).

Research 3

Pozo Cardenal, A., & Carrió Garcia, F. (2013). Qualitative and quantitative financial
analysis of BMW GROUP.

Here are the key points summarizing the section on BMW Group's targets:

1. Strategy Number ONE:

o BMW Group formulated Strategy Number ONE to ensure profitability and
enhance long-term value amidst dynamic market changes.
o Implemented since 2007, focusing on Growth, Shaping the Future, Profitability,
and Access to Technologies and Customers.
o Aims to maintain leadership in the premium automobile market globally.
2. Customer Target:
o Primarily targets individuals with high purchasing power such as executives,
traditional company owners, and young professionals.
o Also engages in marketing efforts to expand consumption among broader
population segments.
3. Future Expectations - 2016 Targets:
o Pursues a growth strategy with expectations to increase investments in R&D and
enhance profitability metrics like Capex and Payout ratios.
o Focus on automotive segment efficiency and profitability growth.
4. Shareholders and Broad Investor Base:
o Majority ownership (34% + 12.6% by Quandt family and Susanne Klatten
respectively) underscores concentrated control.
o Broad investor base globally supports financial stability and market expansion.
o Significant presence in Europe with strategic and institutional investors
contributing to the company's strategic direction.
5. Financial Performance:
o Despite global economic crises in 2008-2009, BMW Group's revenues have
shown consistent growth, particularly in recent years.
 oSales volumes have increased, with BMW maintaining leadership while MINI
and Rolls-Royce also experiencing relative growth.
o Acquisition of Husqvarna in motorcycles sector has enhanced profitability.
6. Financial Services:
o BMW Financial Services offers a comprehensive portfolio including financing,
leasing, insurance, asset management, and dealer financing.
o Tailored services for individual consumers and corporate clients, providing
flexibility and cost-effective solutions.
o Examples include BMW Select for flexible financing combining benefits of
buying and leasing, BMW Elegance for comprehensive vehicle coverage, and
rental options for hassle-free vehicle use.
7. Innovation:
o BMW Group's Research and Innovation Center (FIZ) and BMW Group Research
and Technology drive future technologies and vehicle development.
o Focus on innovation to maintain competitive edge in automotive technology and
sustainable mobility solutions.
o Continuous investment in R&D to anticipate and respond to market and
technological advancements.

These points highlight BMW Group's strategic focus on profitability, market leadership,
customer satisfaction, financial stability, and technological innovation in the global automotive
industry.

Innovation Leadership:

 BMW Group emphasizes innovation through its Research and Development departments,
aiming to gain competitive advantage in the premium automotive sector.
 Focus areas include new technologies, alternative powertrains, energy management
concepts, active safety systems, driver assistance, and information and communication
technologies in cars.
 Approach characterized by a combination of revolutionary (major technological leaps)
and evolutionary (continuous improvement) developments.