University of The People
MBA Business Administration
BUS 5117-01 Strategic Decision Making and Management
Written Assignment – Unit 7
August 3, 2022
After reading the article “Porter’s Diamond Model analysis: Louis Vuitton and BMW,” choose
one and consider the international position of the company. Analyze the market and, using
specifics from your own research, explain each of the four components of the Diamond Model
and then apply them to the company you have chosen. Based on your analysis of this model,
select and justify your choice for the optimal international business strategy for the company.
Then, select and justify the best market entry option for the company to implement to expand.
Introduction
Bayerische Motoren Werke Aktiengesellschaft (BMW) is a German manufacturer that makes
motorcars, motorcycles, and engines since its foundation in 1917 in Munich, Germany (BMW
Group, 2022). It started by manufacturing military aircraft engines during the First World War,
then in 1922 BMW merged with BFW and formed BMW AG as we know it today. BMW started
building a motorcycle in 1923 and in 1928 it made its first car (BMW Group, 2022).
The company gradually moved from being an aircraft engine manufacturer to a premium
motorcar and motorcycle-oriented one. Currently, BMW Group makes its brand motor car;
additionally, it produces the brand MINI and owns a subsidiary named Rolls-Royce Motor Cars.
It also produces a high-performance motorcycle named Motorrad and also handles financial
services and manages the supply chain for customers (BMW Group, 2022).
BMW focuses on producing premium brands including BMW, MINI, and Rolls-Royce that
target specific market segments. This means the company makes a small number of luxury cars
and sells them at premium prices for high-end customers. This makes BMW the only
manufacturer focusing solely on high-end cars and motorcycles in the world. Another unique
point is BMW focuses on innovation and development of high-performance luxury cars while
MBA Business Administration
BUS 5117-01 Strategic Decision Making and Management
Written Assignment – Unit 7
August 3, 2022
After reading the article “Porter’s Diamond Model analysis: Louis Vuitton and BMW,” choose
one and consider the international position of the company. Analyze the market and, using
specifics from your own research, explain each of the four components of the Diamond Model
and then apply them to the company you have chosen. Based on your analysis of this model,
select and justify your choice for the optimal international business strategy for the company.
Then, select and justify the best market entry option for the company to implement to expand.
Introduction
Bayerische Motoren Werke Aktiengesellschaft (BMW) is a German manufacturer that makes
motorcars, motorcycles, and engines since its foundation in 1917 in Munich, Germany (BMW
Group, 2022). It started by manufacturing military aircraft engines during the First World War,
then in 1922 BMW merged with BFW and formed BMW AG as we know it today. BMW started
building a motorcycle in 1923 and in 1928 it made its first car (BMW Group, 2022).
The company gradually moved from being an aircraft engine manufacturer to a premium
motorcar and motorcycle-oriented one. Currently, BMW Group makes its brand motor car;
additionally, it produces the brand MINI and owns a subsidiary named Rolls-Royce Motor Cars.
It also produces a high-performance motorcycle named Motorrad and also handles financial
services and manages the supply chain for customers (BMW Group, 2022).
BMW focuses on producing premium brands including BMW, MINI, and Rolls-Royce that
target specific market segments. This means the company makes a small number of luxury cars
and sells them at premium prices for high-end customers. This makes BMW the only
manufacturer focusing solely on high-end cars and motorcycles in the world. Another unique
point is BMW focuses on innovation and development of high-performance luxury cars while
