The reign of Eberhard von Kuenheim as BMW’s Chairman of the Board began in 1970 and resulted in the company’s shift from a national powerhouse to a global brand. Under von Kuenheim’s leadership, which did not cease until 1993, BMW continued to expand, with a strategic plant placement within the United States. Further, the company purchased Rover Group, the owner of the Land Rover and Mini brand, and acquired Rolls-Royce. In an effort to refine its brand and target customer base, BMW sold the Rover Group in 2000 but retained its ownership of the Mini brand. At the time of the case, BMW’s product lines fell within the BMW, Mini and Rolls-Royce brands and were targeted to the premium automobile segment, on an international scale. Further, BMW was the largest maker of luxury cars in the worldxv.
BMW Electric Vehicle Target Market In focusing to compete with only the BMW, Rolls-Royce and Mini brands, BMW recommitted to focusing on the premium market. Additionally, its role as the sustainability leader within the automobile industry made the brand attractive to drivers desiring leading technology, high performance and environmental responsibility. At the time of the case, the company’s core strategy stated that the “BMW Group is the leading provider of premium products and premium services for individual mobility”xvi . The target market for the electric vehicle was predominately in line with the company’s overall customer profile: a luxury vehicle purchaser that places an emphasis on maximum performance and advanced technology. The electric vehicle target customer was also concerned with being seen as environmentally responsible and, in the case of the I3 Vehicle, was an urban dweller. BMW envisioned the I3 Vehicle to be a second automobile for the luxury, urban driver.xvii
BMW as a Sustainability Leader At the time of the case, BMW firmly believed that it was the automobile industry’s leader in sustainability and, as such, crafted a strategy known as “Number One”. The strategy detailed the company’s “commitment to profitability, sustainable value creation and safeguarding [BMW’s] independence” with an aim to develop “new profitable business lines across the entire BMW: I3 Vehicle
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