Bayerische Motoren Werke was founded in 1916, in the middle of the First World War. The company's purpose at that time was to manufacture military aircraft engines: its Illa engine was known for good fuel economy and high-altitude performance, so orders from the German Government meant that the company expanded very rapidly.

Following the end of the war, the Treaty of Versailles forbade Germany from producing weapons of war. At first, the company switched to producing farm machinery and household equipment, but in 1923 (as the Versailles restrictions were beginning to ease) the company began production of motorcycles, and in 1928 it took over another company which was manufacturing copies of the British-designed Austin 7 under licence. 

By 1933 the company was designing its own vehicles, and as Germany re-armed during the 1930s the company went back to aircraft engine manufacture. Aircraft engines require a very high degree of engineering skill in both design and manufacture, since they have to be extremely reliable, lightweight and powerful.....

Case study questions 

1. Why would BMW move away from adverts which describe the cars more fully? 

2. Why might BMW have a small Web presence? 

3. Why might the ‘Ultimate Driving Machine’ strapline have been so successful? 

4. What is the importance of the company's background in aircraft engine manufacture? 

5. How might BMW increase its online presence in future?