The Rise of Cars: BMW

History of BMW

When was BMW founded?

BMW was founded in 1916 in Munich, Germany, by Karl Rapp [1]. The company initially manufactured aircraft engines before expanding its operations to manufacturing automobiles [1]. As the company grew, it developed a reputation for producing high-performance vehicles and luxury cars. BMW has since become one of the world's leading car manufacturers, with its products being sold in over 140 countries. In 1993, the company launched the Open System Architecture for Electronic Control Units (OSEK), which provided an open-ended architecture for distributed control units in vehicles [1]This technology has been adopted by many automotive manufacturers, and has become a vital part of the industry's development. It has enabled automakers to keep up with the rapidly changing technology of the modern world.

How has BMW changed since its founding?

Since its founding in 1916, BMW has evolved and grown, expanding to become a major producer of luxury cars, motorcycles, aircraft, boats and more. The company's capacity to survive the global financial crisis (GFC) was largely due to its business model, innovative approach to problem-solving and adherence to sustainable leadership practices [2]. BMW's ability to provide long-term value to all stakeholders – suppliers, shareholders, employees and customers – has been one of the major hallmarks of its success [2]. The company has also transformed itself through a transformational change-shaping approach, which has seen the launch of an innovation project as a niche within the own business structure [5]. This has enabled BMW to produce luxury cars, and motorcycles with sidecars that can be driven from Sturgis, South Dakota to New York, as well as boats and aircraft [4]. The BMW i3 was designed in-house with a corporate strategy to become the “future” of electric mobility [5]. To validate this claim, research was done to spatially map the waste generation of the Dublin region, using data from various sources [3]. This research showed that the BMW generation pattern within the Dublin region has changed since its founding [3].

What role did BMW play in the development of the automobile?

BMW has been at the forefront of the automotive industry for many years, working in the research and development (R&D) strategy department in Munich/Germany [7]. BMW has a research interest that focuses on collaboration processes between innovative high-tech start-ups and large automotive manufacturers [7]. BMW is classified as an OEM and is a key player in the electric vehicle (EV) industry, as the EV market is expected to reach $655 billion by 2025 [5]. The automotive industry is undeniably complex, yet vital to the lifestyles of many in the industrialized world [5]. In 2017, the automotive industry accounted for 15.5 percent of global research and development spending [5]. BMW has adopted a sustainable enterprise approach, adhering to a transformative change-shaping innovation style that attempts to promote in-house Germany and create value [5]. Fiat, on the other hand, adheres to a conservative sustaining innovation style that attempts to outsource innovation, promote limited learning, and focus on maintaining value [5]. With the increased production requirements of the EV industry, BMW is making sure that factors such as network suitability, risk exposure, optimal sunk cost usage and sustainability play a central role in its automotive location decisions [6].

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