BMW ( Bayerische Motoren Werke AG, commonly known as BMW) is a prestigious German multinational corporation with a rich legacy of a century of success. BMW was founded in 1916 headquartered in Munich. It produced aircraft engines at the beginning. BMW’s mission statement and vision statement both have helped the company bolster its reign as one of the most prestigious providers of luxury vehicles.
Company Overview at a Glance:
|Company Name||Bayerische Motoren Werke GmbH (as known as BMW)|
|Founded on||7, March 1916|
|Founders||Camillo Castiglioni Franz Josef Popp Karl Rapp|
|Number of Employees||120,726 (2020)|
|Net Income||3.857 billion USD (2020)|
|BMW Mission Statement||“to become the world’s leading provider of premium products and premium services for individual mobility”|
|BMW Vision Statement||“to be the most successful premium manufacturer in the industry”|
Brief Rundown of BMW’s History:
BMW Mission & Vision Statement Analysis
BMW’s origin lies in Rapp-Motorenwerke GmbH, a company that began manufacturing aircraft engines in 1913. After 4 years, in 1917, Rapp-Motorenwerke Gmbh changed its name to BMW.
Bayerische Motoren Werke GmbH may not ring a bell to you but BMW sure will. According to the company, the name BMW represents driving pleasure. However, the abbreviation of BMW is Bayerische Motoren Werke GmbH which is the German name of the company. The closest meaning of it would be Bavarian Engine Works Company, named after the company’s predecessor Rapp-Motorenwerke GmbH’s birthplace, Bavaria, a state in the south-eastern region of Germany.
The first World War thwarted the construction of aircraft engines, as per the Treaty of Versailles. Consequently, the company had to shift its focus to making built-in motors and railway brakes. Taking note of the vast success the company had achieved through these, Knorr-Bremse AG, a Berlin-based brakes company bought the majority of the stocks of BMW and integrated it. This marked the temporary disappearance of BMW from the market.
In 1922, Camillo Castiglioni, the prolific investor, and torchbearer of aircraft construction, bought the company name BMW and acquired the employees, production facilities, company logo, and the entire operation. Since then, BMW has been working relentlessly with the intent to provide its customers with only the very best luxury cars.
BMW’s Mission Statement:
BMW’s mission statement is “to become the world’s leading provider of premium products and premium services for individual mobility”.
The above statement has been quoted on the official website of BMW. Although, they said this mission statement is for up to 2020. But after 2020, they did not update their website. So we can say that it is still BMW’s mission statement.
BMW’s Mission Statement Analysis:
The following factors can be deduced from the mission statement:
1. BMW’s Product Marketing:
BMW boldly claims that its products and services are premium in the mission statement. This implies that the company holds quality control as a top priority. BMW promises to provide the best car experience regardless of where you buy it from.
This brings us to another important takeaway of the mission statement, which is the use of the phrase “the world’s leading provider”. BMW has been focused on becoming a global company.
2. BMW’s Market Positioning:
With a single sentence, BMW outlines its market positioning. It wants to focus solely on premium cars. The mission statement clearly suggests that the company wants people to perceive BMW as the most luxurious carmaker.
The company markets one of the most highly regarded luxury car brands, Rolls Royce. BMW is known for making outlandish cars in order to make them look and feel the most premium.
3. BMW’s Market Segmentation:
The second half of the mission statement states that BMW aims to provide premium products and services for individual mobility; meaning, the company intends to operate within the boundaries of individual mobility. BMW’s target customer base is high-class individuals.
This plays into the first point, a luxury brand can only be established when there is an obvious rarity or exclusiveness attributed to its customer base. The mission statement of BMW shares the company’s target customer base in a bold manner.
BMW’s mission statement is very well-constructed as it contains all three essential components of a commercial mission statement:
a. Key market: For communicating with the target audience
b. Contribution: For mentioning what product or service the company provides
c. Distinction: For giving target customer groups reasons to choose the company’s products/ services over its competitors.
BMW’s Vision Statement:
BMW’s vision statement is as follows “to be the most successful premium manufacturer in the industry”
BMW’s Vision Statement Analysis:
The vision statement contains the essence of the mission statement, which is to be the most successful premium manufacturer in the industry.
For a company with a reputation of over-engineering its cars, BMW has a fairly simple vision statement. The vision statement furthers the company’s aim to become the leading premium car manufacturer in the industry.
A company’s vision statement reflects the stated goal of the company, it contains what a company is working towards in the long run. BMW vision statement is a generic but honest vision statement. It clearly states what it wants to become in the future.
Frequently Asked Questions:
1. What is BMW’s slogan?
BMW’s slogan is “The Ultimate Driving Machine”. This slogan was introduced in the 1970s in their successful marketing campaign that curved the slogan in people’s minds.
2. What are the core values of BMW?
The core values of BMW are: Responsibility, Appreciation, Transparency, Trust, and Openness.
Although BMW’s mission and vision statement both mention its commitment to become the leading provider of premium products, the core values do not include anything related to being premium. But all five core values (responsibility, appreciation, transparency, trust and openness) are necessary components of becoming a premium brand. So, the core values are what makes BMW a premium brand.
BMW created Rolls Royce as its subsidiary in 1998. BMW markets its most lavish and luxurious cars under this brand.
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- Azaddin, S. K. (2012). Mission, purpose, and ambition: Redefining the mission statement. Journal of Strategy and Management, 5(3), 236-251. doi:http://dx.doi.org/10.1108/17554251211247553