From originating in Munich, Germany to successfully launching
23 production shops in 13 different companies, 12 research and development
plants in 5 countries, it is clear that BMW has realized the importance of globalization.
However realizing the importance and considering the risk of globalization are
two major factors that are extremely relative. BMW had to figure which country can
rationalize their currency the best, has a large market for cars and maintain
the “high End “brand they created. In fact BMW found USA to be the most competent
country to meet all criteria, starting with the ratio of 1$ to .91Euro which is great compared to other countries
where 1 currency varies form .60 euro and below, also USA has the 2nd
largest car market in the world so BMW will definitely get their money worth. The
USA is one of top viewed countries on the internet which exposes BMW to other countries
and will create a higher demand. In addition, the USA was a smart decision to
open shop in because even though BMW can manufacture their cars in less
developed countries to profit more; they will be losing integrity of the brand
due to lack of professional and expertise in skill with assembling luxury
vehicles, rather than a more developed country like the USA.
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