With social trends encouraging greener consumption, BMW has seized the opportunity to expand their target market by producing an electric vehicle, the BMW i3. Targeting consumers with families and those who value environmentally friendly products, BMW is receiving a positive response to the i3. Releasing in mid-November of 2013, customers have already reserved more than 8000 vehicles. If the unexpected high demand for the BMW i3 remains constant, the company will need decide whether or not to increase the production of the vehicle.
Although the BMW i3 is in its introductory phase, the company has already recovered its research and development costs, therefore each car sold will contribute to profits. The success of the product prior to the launch indicates that the growth phase of the product is near. With the volume of sales increasing rapidly, the firm is looking to make substantial profits.
However, with the success of the BMW i3, there is an increasing opportunity in the electric vehicle industry, alluring competitors to take advantage. Competitors, such as Volkswagen, are already developing strategies to dominate this particular market. Although BMW has a head start, they will need to sustain their competitive advantage by convincing consumers their product is superior to that of their competitors.
BMW has successfully introduced itself to this new market, however, will they be able to preserve their position?