Quote:
Originally Posted by Law
Your scenarios assume that BMW models compete with themselves and themselves only. When we talk about internal competition, we mustn't forget about the external competition.
Market share only increases if the product successfully sells over another [external] competitor. Competing with another product within the same brand doesn't increase market share.
The problem with your assumption is that BMW sales figures released to the public do not differentiate between 4er GC and 4er coupe.
Thus, a hypothetical sales period that see 3er sales decrease and 4er sales increase cannot be automatically attributed to positive sales of the 4er GC.
For all we know in the above scenario, its possible the 4er coupe sold well, the 4er GC barely sold, and the 3er could have very well lost sales to marques other than BMW (i.e., Audi, MB).
So in your perfect scenario, BMW's costs are minimal because it assumes buyers will decide between 3er and 4er GC only.
But in reality there are other options from other brands, so BMW's costs will simply be exacerbated in a less-than-perfect scenario should a buyer choose a product from a brand other than BMW.
In the short-term thus far, it seems to work for BMW's bottom line.
I'm just skeptical whether this strategy is sustainable in the long-term.
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You're absolutely right. What I posted was pure assumption only because I didn't want to go through sales data and specifically outline what it reads and was just also assuming based on BMW sales increasing here and there but have been relatively flat vs. Mercedes and Audi.
But all that could mean what was said, you're right it doesn't increase market share and it doesn't allow growth which is basically what is currently happening with BMW and all that is happening is moving from one model (3er) to another 4er Gran Coupe (assumption).
I could be totally wrong but that's just a quick thought. When I'm bored, I might go over the sales data to see if that is the trend. Maybe it is, Maybe it isn't.