Case: Globalization of BMW, Rolls-Royce, and the MINI

Summary

This case explores the globalization of BMW, Rolls-Royce, and the MINI. Bayerische Motoren Werke, otherwise known as BMW, dates back to 1916. Today, BMW has more than 125,000 employees and revenues of about $103 billion. With its reputation for streamlined luxury design and performance, BMW sells about 2.4 million vehicles every year. In addition to automobiles, BMW also produces motorcycles and aircraft engines. BMW's portfolio includes the BMW brand along with Rolls-Royce and MINI.

Innovation has long been at the forefront of BMW's strategy to be a leader in the luxury car industry. The company focuses on bringing new features to all of its models and builds on innovations used in its racing program to develop vehicles offering the perfect combination of sporty performance and breath-taking design that live up to the reputation of BMW being synonymous with "driving pleasure."

BMW's Rolls-Royce brand, considered to be the most exclusive luxury brand in the world, has a long history of power, luxury, and quality. With the base model Rolls Royce Ghost starting at $250,000, buyers expect handcrafted perfection. In contrast, BMW's MINI, which like Rolls-Royce traces its roots to the United Kingdom, offers buyers distinctive design, clever solutions, and precise German engineering at a much lower price.

Discussion Questions

1. How do you think BMW integrates its various unique brands into a global effort that works for them (BMW, Rolls-Royce, and the MINI) across the world's many global markets?
2. What is your reaction to the global brand of BMW when you hear its name, think of the brand, and see BMW vehicles on the road?
3. Rolls-Royce's chase of perfection drives the supreme quality, exquisite hand craftsmanship, and attention to the finest detail to maintain its global position as the pinnacle luxury automobile manufacturer in the world. How do you think the Rolls-Royce brand helps, or hurts, other BMW brands globally (i.e., BMW, the MINI)? 25 Points
4. The MINI is a unique car offering in the BMW portfolio. It has long-engaged in clever solutions and distinctive designs that have enabled terrific urban driving and have catered to customers' individual needs. Do you agree that this is the focus for the MINI, and do you think it is working as advertised globally? 25 Points