Topic > BMW Case Study: BMW's Path to Globalization - 2091

The history of BMW must be examined like that of any automaker, as it is a product of its time. BMW was born in the era of regression from globalization, in a time when people were looking to buy domestically and support their local economy. Although the company was actually only capable of serving the devastated post-war German economy, it survived. It would be logical to think that BMW's experience after the Second World War would be like that of the post-war period, initially difficult but with constant growth. However, this was not the case. Because BMW was restricted by the Allied powers after the war, it found itself at a serious disadvantage to compete in the automotive industry when it would be allowed to do so a few years later. BMW's success in the late 1940s and early 1950s came from motorcycle sales, because the Allied powers allowed it to produce motorcycles, and because the post-war German economy was again devastated, people could not afford cars and many opted for motorcycles instead. This was clearly not sustainable because the German and European economies would eventually recover and people would go back to buying cars. When this occurred and BMW tried to get back into the auto industry, it struggled. Although it managed to position itself in the “luxury” status to some extent, it was not yet in a privileged position. BMW was trying to sell BMW quality vehicles (although 1960s BMW quality was significantly lower than today's) at Ferrari prices. The company cared a lot about its image and sought to delve into the luxury vehicle market, but at the same time it realized that innovation (actually globalization) was