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The case examines the growth of BMW, a business conglomerate based in Germany, into one of the leading automobile producers in the world by the 1990s. It critically examines the circumstances that led to the acquisition of the Rover Group by BMW and discusses the problems that surfaced after the acquisition. The case discusses the restructuring initiatives taken by BMW after the sale of Rover - particularly the product offensive strategy adopted by the company. It examines the results of the restructuring and discusses the future of BMW in the light of competition in the premium segment of the automobile industry and potential roadblocks caused by its strategies. The case is designed to enable students to: (1) understand the nature of and trends in the premium segment of global automobile market; (2) examine the rationale for acquisitions from a ''product-portfolio led perspective'' and understand the critical factors that determine the success (or failure) of an acquisition; (3) evaluate the restructuring strategy in terms of product development, market share, economy of scale, and maintenance of margins and brand value; (4) examine the role of frequent product launches in helping a company derive competitive advantage; and (5) discuss the problems that could emerge as a result of a strategy overhaul and its possible affects on the company. The case is intended for MBA/PGDBM level students as part of the strategy and general management curriculum.