Although there are consumers who would normally be in the market for luxury cars they are forced to buy cars that are less costly.
This makes the rivalry among existing firms a stronger force within the industry. Dawson, S.
Customers could go from dealership to dealership and other BMW dealerships in the area in search of the best deal. It is acting as a competitors for Mini and Rolls-Royce that are also considered one of the top class brands in automobiles and are known for their wide variety of products.
This makes it easier for those producing large capacitates to have a cost advantage. In addition, global economic activity has been influenced by falls in equity prices and geopolitical tensions, including the related threat to oil prices, all having a negative impact on the economy.
In this era of auto-industry consolidation, BMW is seen as a medium-sized business which could face problems in the future if it doesn't take into consideration strategic alliances.
Being one of the Market Leaders, BMW was very successful in adapting its Sales strategy with customer new needs and new preferences, BMW offered the 'BMW financial service to facilitate the customer financial payments utilizing the Internet technology and many payments facilities.
Rather than competing with Mercedes and Acura dealerships to see who has the most granite, Hyundai is bringing the consumer the car if they want to test drive it or buy it or they will come and get it from the customer if it needs servicing Special Report: Luxury Automotive Outlook, Figure 1 Special Report: Luxury Automotive Outlook, Based on the chart above, it is apparent that the market is trending upward, but clearly not as quickly as the industry would like.
There is a fierce competition in the global market of the premium car segment and the extent of differentiation between vehicles of each individual brand is significant.