BMW has predicted record profits for this year.
BMW predicts record profits for 2000, surpassing the company’s previous best in 1997. The German automaker predicts profits of E2.2 billion, with worldwide sales rocketing ahead by 9%. Unlike its competitors, BMW hopes to add capacity for 2001. Its highly attractive products have been the key, since they have been much more in demand than the run-of-the-mill product put on the market by other automakers. BMW is leading the path for automakers to follow in its trail.
With the announcement that it will build four eCommerce platforms, BMW is keeping its foot on the throttle. The online initiatives include a comprehensive package encompassing its supply chain, its distribution chain including dealers and consumers, as well as its employees. The company hopes to invest over E435 million in 2001.
BMW is embracing eCommerce throughout the organization: it is a comprehensive project rather than the one-dimensional approach other automotive players have gone for. BMW has chosen a direction well suited to its image. Build-to-order and online ordering suit BMW as a luxury brand much more than they suit high volume-low price manufacturers, although admittedly build-to-order would only suit the specialized products like its M or Z series of cars.
The predictions of future efficiency savings are realistic for BMW, but the biggest challenge for the Bavarian manufacturer will be in integrating all its eCommerce platforms. eCommerce plans often fail in implementation. If BMW successfully integrates all its systems – the supply chain, manufacturing and distribution – with its CRM systems then its policy will be a benchmark for the industry.
