Subject category:
Strategy and General Management
Published by:
IBS Center for Management Research
Length: 13 pages
Data source: Published sources
Abstract
For years BMW had a reputation for cars that combined great styling with exceptional performance. However, since the 1990s, the company has also gained recognition for its customisation programme, which allows buyers to design their own cars from a set of available options. The cars are then delivered within 12 days of the order being placed. Industry analysts have termed this process ?mass customisation?, as it combines the features and advantages of both mass production and customisation. This case discusses the process of mass customisation as a differentiation strategy at BMW, and how it contributes to the company?s competitive advantage. It traces the process of mass customisation from the time an order is placed, until the final delivery. It talks about the supply chain and logistics practices that BMW followed. It also discusses the benefits of mass customisation to the company and customers, and the challenges in implementing the process. The case concludes with a note on the future of mass customisation.
Teaching and learning
This item is suitable for postgraduate courses.About
Abstract
For years BMW had a reputation for cars that combined great styling with exceptional performance. However, since the 1990s, the company has also gained recognition for its customisation programme, which allows buyers to design their own cars from a set of available options. The cars are then delivered within 12 days of the order being placed. Industry analysts have termed this process ?mass customisation?, as it combines the features and advantages of both mass production and customisation. This case discusses the process of mass customisation as a differentiation strategy at BMW, and how it contributes to the company?s competitive advantage. It traces the process of mass customisation from the time an order is placed, until the final delivery. It talks about the supply chain and logistics practices that BMW followed. It also discusses the benefits of mass customisation to the company and customers, and the challenges in implementing the process. The case concludes with a note on the future of mass customisation.