BMW Company: Business and Strategy


Differentiation is a marketing concept that involves manufacturing of products that serve the same purpose but have different and unique features. It is a concept that is implemented in organizations to increase the variety of products. The more products there are, the higher the possibility of making a large number of sales is. From another point of view, product differentiation helps in distinguishing different products based on unique features. Using this concept, the BMW Company has been able to formulate various product-differentiation strategies. The strategies used by the BMW Company include product name, logo and design. Through implementation of the named strategies, the company has been able to achieve a great deal of competitive advantage.


This essay contains discussions about the BMW Company. The specific issues considered are the ways through which the company has sought to differentiate its products to make them unique compared to those of the competitors. Lastly, an opinion is given on whether the company’s differentiation strategy has created a competitive advantage against the rival automakers.

The differentiation strategy

Product differentiation is an element of marketing. Marketing is a concept that is used to enlighten the consumers of the available products in the market. The company has conducted a market analysis to identify the target customers’ needs. It has gone further to segment the target market depending on various demographics such as profession, age and gender. It is important for an organization to understand the specific needs and preferences of a target market prior to taking an initiative to present a solution. The BMW Company understands the simple marketing basic. Consequently, the company has used a substantial amount of resources to understand the needs and wants of its target market.

The company realized that it is not only needs that drive customers but also wants. A want is a wish for a certain satisfaction (Burrow & Bosiljevac, 2009). These wishes are influenced by various environmental factors such as peers, families, organizations and career. Wants are dynamic in nature; they are shaped by different environmental factors. Human wants are numerous and insatiable. A customer can have more than one wish at a time. Every single human want requires a unique product for its satisfaction. The BMW Company mastered this concept and applied it in manufacturing various models of automotive with different and unique features (differentiation) (Reliable in every situation, n.d.).

Differentiation is a marketing concept that involves the production of many products with different features. The BMW Company produces automobiles bearing the brand of BMW. The company has a wide array of automobiles with different and unique features. The first method the company has sought to differentiate its products from those of competitors is the selection of strong brand. The brand “BMW” is a name that has never been imitated since the company’s incorporation. The inimitability of the company’s name makes it a valuable asset. According to the concept of resource-based view, a resource that cannot be imitated is a source of competitive advantage. Therefore, the name “BMW” is a strategy that is the principal source of competitive advantage to the company. The second differentiation strategy sought by the company is the strong logo.

The design of the BMW symbol (logo) is a unique feature that has successfully created a distinction between the company and its rivals. The uniqueness of the symbol lies in its shape and the colors (blue, white and black). No rival company has ever imitated the design of the symbol. For this reason, the company’s logo has been a strong source of core competency. The third differentiation strategy used by the company is the vehicle design. A BMW car can never be confused with any other one, because the product has a unique front and back shape and headlight design that has never been imitated by any other rival company. The unique car design is a strong element of identification and thus a source of core competency (Ferrell & Hartline, 2014).

To conclude, the above named differentiation strategies of the BMW Company have successfully provided a competitive advantage to the company.


Burrow, J., & Bosiljevac, J. (2009). Marketing. Mason, OH: South-Western Cengage Learning.

Ferrell, O. C., & Hartline, M. D. (2014). Marketing strategy: Text and cases. Mason, OH: South-Western/Cengage Learning.

Reliable in every situation. (n.d.). Web.