BMW business model crunches gears as models expand, profit falls Essay

This bind discusses the modern changes in gross revenue, gelt, and earningss of BMW, the German establish manufacturer of luxury automobiles. The phrase opens by proposing five market scenarios that may cloak the way BMW conducts business and earns revenue. The scenarios include changes in laws, consumer desires, auto financing availability, political climate, and consumer purchasing habits. Recently, earnings have dec arguingd by 63 percent and further losses ar anticipated.Company executives and diligence analysts none that earnings on certain postures has declined while sales have increased over a 10 year period. The change is attributed to a mooer implore for the noble finish up performance cars that have been BMWs amount of money product. In response BMW has sold more smaller less expensive cars as a way to respond to ever-changing market demands. This article demonstrates several chemical elements that change a guilds lucrativeness competition in the market , consumer demand and habits, and the company business model.In the case of BMW these changes were prompted by legislation regarding gas prices and environmental concerns which changed consumers thrust and car buying habits. BMW responded to this change by switching to a different line of cars including SUVs and compact cars. They sold more units at lower prices compromising the overall advantageousness of the company instead of conforming their high performance base model to be fuel efficient. Intels shock exemplar sounds alarm for tech sector This article discusses the issues that led Intel to cut its revenue and profit forecasts for up approaching periods.Intel has witherd profit forecasts and their standard prices have declined by seven percent. early(a) technology companies including Microsoft, which uses Intel microchips, and competitors such as national Semiconductor Corp have besides lowered their profit forecasts. These reports have feast fear across the industry th at consumer spending leave alone continue to decline. Intel also cited the commendation crisis as an issue change demand for products and the ability of suppliers to provide services that Intel postulate in its manufacturing process.Industry analysts note that Intels slow performance is normally implicative of early spring results, but do not speculate on how the on-going outlook may uphold the coming spring results. This article demonstrates how one factor layabout have an adverse and possibly unnecessary negative affect on profitability dead reckoning. As mentioned in the article speculation alone caused stock prices to tumble. Investors take away that profits will be low and will either divest or not further invest affecting the companys ability to finance production operations.Suppliers assume the worst and imprint it difficult for the company to obtain materials they engage to manufacture and get chips to the market. End users kindred Hewlett Packard and Microsof t may purchase chips from competitors on the arrogance that Intel will not be competent to deliver. In other words, a dirty forecast can become a self fulfilling prophecy. The difference in the deuce articles is that the BMW article demonstrates a verifiable and sensible set of issues that can and do affect the profitability of the company and the automobile industry as a whole.The Intel article demonstrates how speculation can affect consumer confidence in a way that can reduce profitability. BMW has analyzed the real issues that have cut down their profitability and are in a position to change their business model to respond to the situations identified in the article. Intel, on the other hand, has subjected itself to speculation and must wait to see how the market environment plays out. They can change their forecast but that is not a solid guarantee that consumers will respond positively to the change.