Strategic management

Read the below case BMW Differentiates with Mini"), and answer all of the 3 questions below: 1) What is the Business-level Strategy of Mini? Support your answer based on evidences from the case, and discuss (30 pts). 2) What are the major advantages and disadvantages of the business-level strategy of Mini? Make sure to mention minimum 2 advantages and 2 disadvantages, and discuss (40 pts). 3) Discuss how Mini can apply the five components of customer relationships effectively in order to sustain competitive advantage (30 pts). CLOSING CASE Paul RANTY customers than being simply a car. In addition Mini has its own online social network, or "urban initiative". caled Mini Space. A host of other marketing initiatives. both on and offine, are all designed to play on the car's perky appeal Mini buyers have a broad and in-depth choice for ther car's specification, with 372 interior configura tions, including a wide choice of options for seat cover materials and steering whool covers, and 319 exterior options, with choices on factors from the type of en gine in the car to whether to have racing stripes nun ning over the top of the car. Combined, these options result in 15 trilion possible variations, making the Min the closest thing to a customized car in its size and price range, The BMW brand has traditionally been associated with larger and premium priced cars, therefore for BMW the ownership of the Miri brand provided the company with the opportunity to enter a very different segment of the automobile market whilst reducing the risk of affecting perceptions of their existing brand. In terms of strategic development for BMW, the pur- chase of the "Mini" brand provided the firm with a sig. nificant growth opportunity that involved both new product development and brand development. This was to be achieved by entering the very competitive small hatchback market with a premium product, competing against models such as the WW Golf Ford Fiesta and Audi A3 With their authentic and absolutely unique brands, BMW, Mini, and Rolls-Royce, BMW occupies a posi- tion as a major market shareholder in all of their mar- kets, ranging from small cars to those of a more luxurious class. This makes BMW the only multi- brand manufacturer in the world not operating in the mass market BMW differentiates with Mini a mum products and services for individual mobil ty. Revenues are generated through three business divisions: automobiles, financial services and motor- cycles. BMW focuses on the premium segments of the global passenger car and motorcycle market. The automobiles division develops, manufactures, as- sembles and sets passenger cars and off-road vehi. des under the brands BMW, Mini and Rolls-Royce BMW acquired the Mini brand in 2001. Since this ac quisition sales grew from 25000 units in 2001 to over 232000 units in 2008. The Mini, which is sold in more than 70 countries, is even a hit in countries that have strong local auto industries. The top five markets are Britain, with sound 45000 cars sold in 2008; the United States with 41000, Germany 29000; Italy 22 000; and Japan 13000. BMW has consistently positioned its Miri line as more than just a car. Instead it is marketed as a le style brand, with a range of driver accessories and other miscellaneous branded toms such as key fobs and clothing lines giving the brand more meaning to Sources: Maynard, M. (2006) "Can the Mini stay up to speed Informational Heal Tribunn, October 6: http:// www.bwt http//www.wikipedian Statement by Prot Dr. Ing Joachim Miberg, chairman of the board of manage mont of BMW AG, and Dr Burchard Goschol, member of the board of management of BMW AG, on the occasion of the Mnl Press Conference Paris. 28 September 2000. 12.3: Highlights, http://www.mini.co.uk