Threats:
1.
Increasing prices of raw materials: Auto manufacturers are facing issues due to rise in costs or raw materials leading to lesser profits and higher input costs. 2.
New competition: In developed countries, markets are saturated for luxury cars, intensifying competition. With increasing competition from competitors like Audi, Mercedes Benz, Toyota, etc. BMW tends to compete more on price rather than differentiation. 3.
Euro exchange rates: Exchange rate fluctuation can be a major threat for BMW if euro appreciates against other currencies because a huge part of it profits come from other currencies. 4.
Malfunctions: Another threat for BMW can be the product recalls which compromises its claims of high-end quality products affecting its brand image. E.g. in July 2014, the company announced recall of 1.6m 2000-06 3 series models due to passenger-side airbag issues. Similarly, in April 2014, BMW recalled 156,137 luxury cars and SUVs due possibility of faulty engine bolts. 5.
Shale Gas Extraction: With increasing emphasis on shale gas extraction, future fuel prices may drop making electric, hybrid and hydrogen cars less attractive. This in turn can be an area of concern for the company who is spending a major portion of its reserves and profits in developing the i-technology electric and hydrogen car
Threats:1. Increasing prices of raw materials: Auto manufacturers are facing issues due to rise in costs or raw materials leading to lesser profits and higher input costs. 2. New competition: In developed countries, markets are saturated for luxury cars, intensifying competition. With increasing competition from competitors like Audi, Mercedes Benz, Toyota, etc. BMW tends to compete more on price rather than differentiation. 3. Euro exchange rates: Exchange rate fluctuation can be a major threat for BMW if euro appreciates against other currencies because a huge part of it profits come from other currencies. 4. Malfunctions: Another threat for BMW can be the product recalls which compromises its claims of high-end quality products affecting its brand image. E.g. in July 2014, the company announced recall of 1.6m 2000-06 3 series models due to passenger-side airbag issues. Similarly, in April 2014, BMW recalled 156,137 luxury cars and SUVs due possibility of faulty engine bolts. 5. Shale Gas Extraction: With increasing emphasis on shale gas extraction, future fuel prices may drop making electric, hybrid and hydrogen cars less attractive. This in turn can be an area of concern for the company who is spending a major portion of its reserves and profits in developing the i-technology electric and hydrogen car
การแปล กรุณารอสักครู่..