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BMW: Case Study Essay

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Searching for BMW case study essay to get inspired? Look no further! This BMW marketing strategy case study analyses the company’s strategic management and the approach to customer segmentation.

Introduction

• Case Summary
• Defining the Issue

Consumer Segmentation

• Marketing Strategy
• Recommendations

BMW is one of the most recognized brands in the world. It is at the echelon of the automobile industry, producing products that are known for a combination of quality, utility, and style. Customer segmentation is a management factor that all companies should consider in their marketing strategy. This case study analysis attempts to examine the BMW brand and its approach to market segmentation to expand its automobile sales.

BMW Case Study Summary

BMW developed into an international automobile company after World War II and achieved tremendous success by the mid-20th century. In 2012, it had international sales exceeding $106 billion (Kotler & Keller, 2016). The BMW is an instantly recognizable symbol, a tribute to the company’s early days as an aircraft manufacturer. Originally, BMW attempted to appeal to baby boomers, producing sports sedans that were luxurious and demonstrated high performance.

This became the 3, 5, and 7 series which were a similar design in different sizes. At the beginning of the 21st century, as consumer needs shifted, BMW began to introduce a wide variety of other vehicles, ranging from premium SUVs to convertibles and roadsters, as well as cheaper compact cars in Series 1. BMW offered options to family-oriented consumers, wealthy conservatives that sought luxury, and those needing bigger cars for outdoor activities, as well as those seeking highly flamboyant vehicles.

BMW Case Study: Defining the Issue

BMW utilizes various advertising tactics and methods but has continued to employ the tagline “The Ultimate Driving Machine” since 1974. It has seen a steady increase in sales in the US and focuses on emphasizing quality rather than status. BMW consumers usually demonstrate loyalty, but the company seeks to attract new customers. The marketing issue for investigation is whether BMW adequately segments the consumer base and how well it employs marketing to each group. BMW’s marketing strategy will be examined, and recommendations provided for potential improvement.

BMW generally uses a mono-segment marketing position that appeals to a single customer segment of relatively wealthy individuals. Most of the automobile lineup which BMW offers consist of luxury vehicles, and even its Series 1 is priced at the higher end of the mid-range sedans. The company simply does not offer budget vehicles that may be appealing to individuals and households with income below the upper-middle class. Despite this, BMW most likely uses a post-hoc segmentation approach which analyzes marketing data after sales to determine its customer clusters and category management. Segmentation is based on consumer preferences, which consists of product evaluation.

In an automobile, this includes aspects such as price, performance, ecological features, and reliability. These help to shape criteria that are used during automobile selection. The preferences are vital in constructing the additive value function which is a major method of determining utility for various customer segments (Liu, Liao, Huang, & Liao, 2018).

As mentioned in the case study, BMW offers a variety of cars that may fulfill the distinct needs of its consumers. Each of the car types it offers such as sedans, SUVs, or roadsters all have several vehicles in the series which gradually increase in price and feature offering. BMW actually segments the premium market by finding a balance between purchasing behavior and marketing mix and responding appropriately to value and consumer trends. However, the brand does not compromise and cater to most segments but adopts a marketing strategy that focuses primarily on a premium target market (Yuying & Qingrun, 2018).

The primary consumers of BMW vehicles are men aged 30-50 with higher levels of income. This segmentation works for BMW as it attempts to maintain its status as a luxury car manufacturer. With BMW combining luxurious superiority with performance and reliability, the company positions itself to appeal to upper-class customers that will appreciate the masterpiece and symbolic nature of its highly technological automobiles. Therefore, BMW establishes a particular value to its product which is reflected in both pricing and marketing strategy.

BMW Marketing Strategy

BMW focuses its marketing efforts primarily on premium segments with the purpose to define luxurious brand identification of its vehicles. The focus on affluent customers in the majority of its marketing for the 3 through 7 series has demonstrated the success of this approach. BMW positions itself as a leader in the industry through innovation. This may range from clean energy engines to complex electronic systems in its cars. The company builds its value and competitive advantage on the innovation concept which is reflected in its global marketing strategy (Dong & Koo, 2018). In other words, the development effort, components, and performance that is input into BMW cars are reflective of its value, justifying such price tags.

The luxury product market continues to demonstrate significant growth year over year, despite any economic downturns in the last decade. Premium vehicles such as BMW base their segmentation and marketing on the concept of scarcity.

Consumers purchasing luxury products are buying into the dream and exceptional quality. BMW takes advantage of this by adopting a “masstige” approach, combining the prestige of its automobiles with mass marketing strategies to achieve a high level of sales. Premium products directly impact the psychological concepts of self-esteem and social recognition. The consumption and possession of premium brands are associated with pleasure and a range of other emotions which consumers pursue as part of increasing or upkeeping their social status (Chandon, Laurent, & Valette-Florence, 2016).

Based on this, BMW began to test a new slogan of “sheer driving pleasure” in limited markets to attempt the transition of marketing focus from performance alone to the emotional appeal of its luxury brand. While the iconic “ultimate driving machine” may be successful, it may be viable for BMW to eventually change its slogan. The current slogan appeals to its primary demographic of wealthy men but fails to capture other market segments such as women, young adults, and those without such great enthusiasm for cars. The emotional marketing approach is closely relatable with individualism, a coveted value for United States consumers.

Emotional paradigms contribute to the cultural entourage and social constructs of a vehicle (Lutz, 2015). By integrating its quality and performance into emotional marketing, BMW can capitalize on its widely known brand and enhance consumer communication. BMW can improve its marketing strategy and adopt new consumer segments by combining emotionally sensual marketing with premium performance. The two concepts are inherently synergistic and would allow for BMW to maintain a leading position in the industry.

BMW Case Study Solution & Recommendations

In addition to using the emotional marketing appeal, BMW should seek to expand its consumer segments. This is particularly important in light of potential economic downturns and expansion into developing countries where average incomes are significantly lower than BMW’s primary markets of North America and Europe. One recommendation would be to expand its lineup to include more budget-oriented cars that maintain a similar level of quality, safety, and performance. This would be in line with BMW transitioning its focus from class to performance as mentioned in the case study.

It would attract a significant market segment from middle-class households who would now be able to afford a BMW automobile which does not sacrifice much in terms of performance, only luxury. However, this decision should be taken into consideration of the long-term commitment of the company since it would dilute the premium status of the BMW brand. Even now, driving one of the cheaper series of BMW is considered far less prestigious than its luxury sedans. Expansion into new segments will present challenges with both advertising and competition.

BMW should keep track of changing consumer trends, diversity, and social opinions, basing its advertisement strategy on appealing to a wide variety of the market, even those that may not be able to afford its cars. The BMW brand image is distinguished and synonymous with prestige, quality, and performance. The company’s further strategy should encompass significant investment into technologies such as clean energy and self-driving cars, and reflect this in their marketing campaigns which position BMW as an innovator in the industry.

BMW is a global automobile brand that produces and sells premium-level vehicles. Its primary consumer segment consists of affluent individuals and the car lineup is designed to meet the demands of this market segment. BMW bases its marketing strategy on innovation and performance, taking advantage of its luxurious brand name to emphasize quality and scarcity. While this marketing strategy has been successful, it may be viable to modify the approach by using emotionally sensible marketing and introducing low-end vehicles with a similar level of quality in order to expand its consumer segments.

Chandon, J.-L., Laurent, G., & Valette-Florence, P. (2016). Pursuing the concept of luxury: Introduction to the JBR special issue on “Luxury marketing from tradition to innovation.” Journal of Business Research, 69 (1), 299-303. Web.

Dong, H. B., & Koo, J. (2018). Conspicuous and inconspicuous luxury consumption: A content analysis of BMW advertisements . Reinvention: An International Journal of Undergraduate Research, 11 (2). Web.

Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). London, England: Pearson.

Liu, J., Liao, X., Huang, W., & Liao, X. (2018). Market segmentation: A multiple criteria approach combining preference analysis and segmentation decision. Omega, 83 , 1-13. Web.

Lutz, C. (2015). Marketing car love in an age of fear: An anthropological approach to the emotional life of a world of automobiles. Etnografica, 19 (3), 593-603. Web.

Yuying, A. & Qingrun, R. (2018). Global marketing strategy of BMW . Web.

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The new BMW: business model innovation transforms an automotive leader

Journal of Business Strategy

ISSN : 0275-6668

Article publication date: 6 July 2020

Issue publication date: 7 July 2021

The car no longer serves simply as a means of transport but is at the core of a new concept of mobility. Car manufacturers are seizing opportunities to change the traditional business model of the auto business. Innovation in this business model has become vital to survival in today’s dynamic market conditions. This paper aims to find out what factors motivate and drive business model change and what the resulting business model innovation is.

Design/methodology/approach

This qualitative study is based on a single case, namely, BMW as an illustrative example of an advanced, highly innovative customer-centric service business model (BM). The study adopts a document analysis method to reveal the firm’s BMI process.

First, the study presents a conceptual framework for business model change with the factors –motivators and drivers – that impact on the process of change. BMW’s BMI and its impacting factors are discussed based on this model. The McKinsey 7 s Model framework, the elements of which are strategy, structure, systems, shared values, style, staff and skills is used as an analytical tool to discuss new business model implementation. The study highlights the BM configuration of a traditional car manufacturer, the car as a product and the new car as a service concept.

Originality/value

This study reveals the BMI of BMW’s digital services and its key motivators and drivers. BMW mostly innovates in three key dimensions of the Business model. These are value creation, value delivery and value capture. Most of the elements in these dimensions are innovated.

• Business model innovation

Kukkamalla, P.K. , Bikfalvi, A. and Arbussa, A. (2021), "The new BMW: business model innovation transforms an automotive leader", Journal of Business Strategy , Vol. 42 No. 4, pp. 268-277. https://doi.org/10.1108/JBS-02-2020-0021

Emerald Publishing Limited

Copyright © 2020, Prasanna Kumar Kukkamalla, Andrea Bikfalvi and Anna Arbussa.

Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode

Introduction

Technological innovations, market dynamics and changes in customer preferences have greatly impacted the traditional business model of manufacturing firms. While many firms struggle to generate a substantial profit from product sales, others try to identify opportunities by integrating product-related and value-added services. The days are gone when firms focused solely on product-centric business. A new business strategy known as service integration has evolved in the manufacturing sector. Changes happen at the level of value creation, value delivery and value capture. Any change in these dimensions ultimately results in business model innovation which is defined as an activity or process in which core elements of an enterprise and its business rationale are purposely transformed to achieve operational and strategic advancements.

The innovation in business models is novel and complex in nature, and it connects with various aspects such as corporate strategy, technological capabilities and firms’ innovation processes. Business models are periodically impacted by technological innovations either by creating an opportunity or by taking a risk which will result in competitive advantage or disruption. Business model innovation is often the result of external factors such as competition law, labour market legislation and environmental legislation. The automotive industry has long been applying the traditional model. The value of this kind of model depends on being able to offer more cost-effectiveness, low emission engines and extra safety packs that may include auto-braking and chassis control, among others ( Chrysakis, 2017 ). However, these features no longer create competitive advantages, and they have proved easy to copy. Many car manufacturing firms have lately integrated or are planning to integrate customer services such as mobility services, on-demand services and infotainment services in their core business operations. While practitioners and research communities have paid much attention to business model innovation, an industry-specific model, for example how car manufacturers orchestrate their business model and which elements are impacted by this change, is yet to emerge. To fill this knowledge gap, we narrow down the research on innovation in business models by focusing attention on BMW, considered to be one of the leading industry players for advanced services and a successful business model innovator.

The structure of this article is as follows: first, this study explores the business model literature to outline the factors impacting innovation, and a framework for the business model innovation process is proposed. This framework is then used to discuss each element of the business model related to ConnectedDrive and the corresponding degree of innovation. Last, the paper compares the traditional and service integrated business models, as Figure 1 shows.

The factors behind business model change

A set of factors was synthesised and classified into two groups ( Figure 1 ): motivators (inspire the firm) and drivers (facilitate change).

Change can be triggered by internal factors such as organisational culture, the firm’s aspirations, management support and new revenue channels, or by external factors such as market pressure for innovation and differentiation.

Different factors can facilitate the innovation process, including market-level factors such as information and communication technologies (ICTs), big data, external drivers (globalisation, deregulation), the ability of firms to identify changes, co-development relationships, stakeholder demands, knowledge management infrastructure and management processes.

Dimensions of innovation

Rayna and Striukova (2016) find five dimensions of value in the business model literature: creation, proposition, capture, delivery and communication. This article discusses three of the most relevant values to the case study: creation, delivery and capture.

Value creation

Firms create value for the product and services with their core competencies, key resources, governance, complementary assets and value networks.

Value delivery

This dimension describes how the value created is delivered to customers through distribution channels These elements offer ample opportunity for innovation by addressing the needs of the market segment (for instance, a mobility service that targets short term travel needs), or by introducing a new way to deliver products or services (for instance, Netflix or Amazon Prime).

Value capture

This refers to the firm’s ability to benefit from the value created. It includes the revenue model used to generate cash flow and the cost structure. Value capture also includes profit allocation across the value chain. Innovation may allow a firm to gain market leadership through cost restructuring.

Degree of innovation

Changes in the elements of the business model influence the degree of innovation. Amit and Zott (2012) categorise innovation as radical or incremental. Radical innovation is an innovation with a high degree of novelty, which breaks with what existed previously. John Deere, for example, has revolutionised the farming industry by integrating sensor technology into its tractors. In contrast, incremental innovation has a low degree of novelty, and with less risk and cost than radical innovation. For instance, electric windows, air bags, cup holders and ABS brakes are all examples of the incremental innovations made to cars.

Case background

BMW is one of the leading firms in the automotive industry, not only offering premium vehicles but for many years also providing customer with financial, on-demand and telematics services. The firm's transformation to customer-centric began by introducing telematics services in 1997. For the past 22 years, BMW has not only been offering telematics services, but has become the dominant force in the digital service market. The range of services available for current BMW models includes a personal telephone information service, emergency calls, Google Local Search, traffic information and internet-based services for navigation, communication and infotainment. These services are available in 45 countries, and there are already over 10 million connected BMW vehicles on the world’s roads.

Methodology

For this research, a single case study method was used. The case study research method as described by ( Yin, 2003 ) is a suitable method for obtaining insights into the innovation approach. This study follows the document analysis technique ( Bowen, 2009 ), a systematic procedure for reviewing and evaluating both printed documents and digital material. It is especially applicable to qualitative case studies, which are intensive analyses that produce rich descriptions of a single phenomenon, event, organisation or programme ( Stake, 2000 ; Yin, 1994 ). The data was gathered from BMW press releases, websites, annual reports, company announcements and collaboration announcements.

Factors behind innovation

Motivators..

Three motivators behind BMW’s decision to change its product-centric model to a service model were identified. These are organisational culture, competitive advantage and additional revenue ( Table 1 ). Regarding organisational culture, as a pioneer in the market, BMW always strives to be innovative in its core business activities. With aspirations of being a pioneer in technology and a first mover in the market, in 1997 BMW launched internet services in the car (telematics service). BMW has kept its commitment to offer more customer-centric solutions, expressing its organisational culture in the following ways: “we committed”, “as promised”, “being a first mover” and “technology pioneer”. The integration of services of this kind prompted the start of change in its business model.

The increase in competition from emerging markets and dynamic market conditions has led car manufacturing firms to focus more on innovations. In 1997, the digital service market was in the expansion stage, and there were not many players in the market. BMW used this opportunity to create a competitive advantage for their fleets. Twenty years in telematics services have proved their strategy to be successful, and BMW has kept its leading position in the digital service market. Creating a competitive advantage is one of the reasons behind innovation.

Light vehicle production on a global basis dropped during the 1998 calendar year, falling nearly two per cent to 51.6 million units. This decline, starting in 1997, stemmed from the collapse of the Asia-Pacific region economies where automotive output declined by 11% to 14.5 million units.

To create additional revenue streams, BMW introduced digital services into the market. In-service integration model firms generate revenue by providing customer solutions and creating new revenue channel sources ( Liang et al. , 2017 ). This could have been one possible motivation for BMW to change to a service-based firm. One vice-president described this movement: “We build digital products and services that are meant to help us differentiate our core product, the car, and generate revenue.” These services have been offered for several years, but the firm does not reveal its exact revenue from these services. Information gleaned from the annual reports and the expansion of third-party services in the digital service platform indicate that BMW receives a substantial amount of revenue from these services. Aspirations of additional revenue is obviously one of the factors behind the change.

Regarding the drivers that facilitated the change, BMW relied on technology integration, collaborations, dynamic capabilities and knowledge process activities. IT (information technology) firms have expanded their business into the automotive industry landscape, offering customer services such as parking payments and in-vehicle services. With their dominant technological knowledge and market power, they disrupt the business model of the automotive industry. In this competitive situation, instead of competing with each other, BMW teamed up with these firms. A board member commented on this move: “We cannot offer clients the perfect experience without help from one of these technology companies. Two worlds are colliding here. Our world focused on hardware and our experience in making complex products, and the world of information technology, which is intruding more and more into our life”.

Given that the telematics service business seemed to be taking off, BMW escalated the service integration process by making collaborative agreements with various stakeholders such as technological firms and telecommunications providers. Instead of developing the technology itself, the company opted for a collaborative strategy to access a partner’s service and to provide an opportunity to integrate services as third-party service suppliers. For example, the firm has developed central engine control units through cooperation with partners such as Bosch and Siemens.

To sum up, the firm’s key motivation behind these collaborations was not simply to integrate the partner's services but to select only innovative technology and widely accepted solutions in the market such as on-demand music and navigation services.

With regard to dynamic capabilities, in an online interview Ian Robertson, member of the Management Board BMW AG, pointed out that “We are one of the world’s, if not the, most successful automotive companies and we are rapidly becoming a technology company”. In line with this vision, BMW has developed new capabilities such as the ability to integrate, build and reconfigure internal and external competencies to address rapidly changing environments. In 2001, the BMW Group Launched VIA 2.0 (The Virtual Innovation Agency), the online platform for people with ideas. All ideas, concepts and patents for new technologies that could be used by the BMW Group in its products and services in the short, medium and long term can be submitted online.

Effective knowledge process activities accelerate the change process. These activities include the capture, transformation and use of knowledge to design new services ( Ansari et al. , 2012 ). BMW generates a huge amount of data about vehicle conditions, drivers’ behaviour, and user service preference through the digital service platform. This data is processed by the firm and/or supply chain partner to design and develop new services. These (data collecting) processing activities serve BMW’s legitimate interest in meeting the high standards placed by customers on existing products and services and being capable of satisfying customers' future wishes through the development of new products and services (Data protection, BMW). BMW has associated with leading technology centres in Europe, Japan and the USA, immediately entering all the knowledge and information gained into a central Intranet system made available to all associates to promote new ideas and networked thinking.

Traditional business model vs service business model

Press notes and media announcements made by BMW were analysed to present the two models. One is the traditional model (Car as a product) and the other is a new model (Car as a service). The first still exists in the company and the new model is being built for ConnectedDrive services ( Table 2 ). Analysis of the business model reveals different views, one traditional and the other new.

In the traditional model, value creation is based on the firm’s resources, capabilities and activities. Sometimes key resources are acquired from the supply chain network, but within the automotive business landscape. Meanwhile, in the new model, value comes from integration technology (established in the market or new to the market), knowledge process activities (customer knowledge) and collaborations (mostly IT firms).

In the traditional model, the firm uses dealer networks and their own distribution channel to deliver the product (car). The customer segment is mostly people who love luxury products, fuel-efficiency and design. However, in the new model, BMW uses its own network (store and online) to deliver services. BMW mainly targets people who love digital services. In the traditional model, BMW generates income through the sale of products and spare parts. Other basic services like maintenance and insurance also contribute a substantial amount of revenue. Most of the cost structure in the traditional model involves R&D, production, sales and marketing and training. In the new model, BMW has created various pricing models to generate revenue such as Freemium and Subscription mode (bundle and flexible). They invest money in activities such as service design, technology acquisition and knowledge management.

Implementation of a new business model

The study explored BMW’s new business model implantation process through McKinsey's 7S Framework ( Waterman et al. , 1980 ). The model is often used as an organisational analysis tool to assess and monitor changes in the internal environment of the firm. The findings are discussed through seven aspects of BMW that align for the successful integration of digital services and expansion of ConnectedDrive services: structure, strategy, systems, skills, style, staff and shared values ( Figure 2 ).

This defines how a firm is organised for transformation. The automobile industry has expanded into a digital service ecosystem. External factors such as the evolution of digital services, customer preferences and market trends have led BMW to focus on digital services. BMW introduced these services in 2008, and they have gradually expanded over the years. The company continually monitors these service adaptabilities in the market and improves them based on customer reviews and feedback. This observation emphasises the fact that for effective transformation a firm needs to focus on external elements such as market trends and customer preferences. Firms also need to focus on customer complaints, reviews and feedback to improve service quality.

Strategy is the way a firm aims to improve its position through better value for its customers. BMW adopted technologies that are well accepted in the market and integrated into their service portfolio. Chesbrough and Schwartz (2007) argue that firms can innovate the business model by establishing co-development relationships with different stakeholders. Along with their own digital services, after collaborations. BMW started third-party services in a digital service network. The reason behind these third-party service integrations was that customers like technologies such as apply play, on-demand music and navigation services while driving. BMW set up its own digital platform to deliver its services to customers who can acquire them through the website and the App Store. The results showed that BMW adopted a collaborative strategy with established IT firms.

Systems are defined as all the procedures, both formal and informal, that make the organisation perform better. BMW’s digital services emerged from the innovation of elements in the business model. Innovation started with changing the key activities of the firm. BMW set up a 24/7 customer service centre to answer all enquiries related to ConnectedDrive services, where customers can interact with the service provider through social media. In March 2019, the firm also introduced an intelligent personal assistant to help drivers with driving-related issues. These kinds of activities lead to generating customer information and related knowledge. In addition, BMW also involves customers in early customer service designing processes. This innovative step enables a more collaborative relationship with customers as a way of meeting customer expectations.

In 2014, BMW appointed Dieter May as senior Vice-President for digital products and services to lead the way in staff. At that time, he had had 23 years’ experience in global high-tech companies, spanning mobile products, large-scale cloud-based consumer services and semiconductor technology. BMW also invited creative ideas for products and services through the “Virtual Innovation Agency”. The company associated with selected people for service development, and with several research units and start-ups for new service developments, for instance offering industrial PhDs where researchers develop products and services for BMW. A general manager of product and channel development at BMW Group UK commented: “BMW opened its doors to external entrepreneurs to partner with them to support our innovation plan. This way we develop new services that tackle the changing customer needs we are seeing, and they help us find new ways to capitalise on new technologies”. This observation showed that for an effective transformation a firm should take advantage of experienced personnel and associate with creative minds.

Style refers to how management acts in achieving the organisation’s mission within the cultural context of the firm. BMW is one of the first movers in the digital services market, striving to be a market leader and pioneer in the digital service business. A general manager of product and channel development at BMW commented: “You need to learn to get from idea to implementation quickly. It’s something we strive to do. And BMW’s commitment to innovation across our business is coming from the very top of the company – our executive team see this as a key part of their strategy for the business”. Another factor observed in this study is that BMW clearly defined its transformation and new image in the market. The vice-president of digital services and business models commented: “The BMW Group is working to shift from a traditional luxury auto manufacturer and service provider to a technology company, with automated driving, digital connectivity, mobility services and electrification as some of the central pillars of our new strategy”. The results show that the firm needs support and cooperation for transformation, and they must have a clear vision of where this transformation is leading.

Skills are the organisation’s dominant attributes, competencies and capabilities. BMW established the capabilities required for digital services, which include sensing, identifying and assessing emerging opportunities. Establishing these capabilities is completely new in the automotive industry. First, the company hired experienced people to lead the digital services business. It then associated with established IT firms and other firms to acquire know-how technology and competences. For instance, BMW acquired analytical capabilities by teaming with IBM. IBM’s cloud platform Bluemix gives developers access to BMW’s entire service catalogue and its ecosystem partners to build and operate innovative new service offerings. The general manager of IBM explained this collaboration: “The concept of a neutral server fosters innovation by establishing a single point of contact for multiple parties to access vehicle data from various manufacturers, thereby reducing integration cost whilst ensuring fair competition”. The results showed that BMW acquired skills and competencies from IT partners. Some competencies are co-developed with partners. To sum up, for effective new business model implementation a firm needs to develop and acquire skills and capabilities.

Shared value

Shared value is defined as the norms and standards that guide a firm’s action, or the core vision of the firm. Creating a digital environment for drivers is the core vision of ConnectedDrive services. The vice President of Digital Products and Services expressed this vision as: “We build digital products and services that are meant to help us differentiate our core product, the car, and generate revenue. These digital services also provide us with channels and touch points that allow us to now have a direct relationship with the customer on the sales side and talk to the customer directly”. BMW’s mission for ConnectedDrive services is to establish better customer relationships and new revenue streams.

The aim of the present study is twofold: first, to examine a business model innovation framework with influencing factors and to contrast it with empirical evidence. This goal was achieved by presenting a conceptual framework and applying it as an analytical tool to describe BMW’s model development. Second, this research showed how BMW innovates each element in the model dimensions, which were then categorised into various degrees of innovation. The study also showed how BMW orchestrates innovation for digital services. To effectively adopt changes in the business model, the firm must first clearly understand what motivates this transformation. The firm should focus on factors such as market dynamics and other external forces that influence business landscapes. However, the firm should be aware that these forces can create an advantage or risk. Motivation alone is not enough to change the model, but the firm should find drivers that facilitate this transformation. The firm must have the support of these drivers to create an efficient model.

Market dynamics have changed dramatically, and the firm needs to develop dynamic capabilities to shape business activities according to demand. Firms cannot create value through their products or services alone but rather need to collaborate with other stakeholders to create a value constellation, as suggested by Haggège et al. (2017) . By adopting the latest technology, constant service-integration and customer knowledge can transform business activities to be more efficient and effective.

This paper has some limitations. The first one is that it develops a conceptual framework with the factors that emerged from the literature and are validated with a signal case study. The second limitation is that the study depends solely on secondary data. Regarding future research directions, this study recommends that research communities validate the proposed framework in a different context and with multiple case studies. The key element category presented in this study should be expanded further through empirical analysis.

The business model literature focuses on the impacts and benefits in general, proposing strategies for innovation. However, context-specific studies are yet to be uncovered. As a result, empirical illustrations of business model innovation in the automotive industry are lacking. This study contributes by highlighting the issue through presenting the business model of BMW for digital services. The results of this study can help managers to understand how innovation in business models may be orchestrated and what elements they need to focus on.

Acknowledgments

An earlier version of this article has been presented at the 4th International Conference on New Business Models “New Business Models for Sustainable Entrepreneurship, Innovation, and Transformation”, ESCP Europe Berlin, 1-3 July 2019, Berlin, Germany. The corresponding author would like to express his gratitude to the Department of Business Administration and Product Design, University of Girona (Spain) for financial support for the conference. The corresponding author would also like to thank his colleagues in the Centre for Research on Operation, Projects and Services (CROPS), Tampere University, and colleagues in the Department of Business Administration and Product Design, the University of Girona for their thoughtful and valuable comments.

Framework of analysis

Illustration of business model Implementation through McKinsey 7 s model

Factors behind business model innovation

Comparison of business model components – car as a product vs car as a service

Source: Author’s own elaboration

Amit , R.H. and Zott , C. ( 2012 ), “ Business model innovation: creating value in times of change ”, SSRN Electronic Journal , available at: https://doi.org/10.2139/ssrn.1701660

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Corresponding author

About the authors.

Prasanna Kumar Kukkamalla is based at the Department of Organization, Business Management, and Product Design, University of Girona, Girona, Spain. He is a Doctoral Candidate at the Department of Organization, Business Management and Product Design, University of Girona, Spain. His research interests focus on business model, organisational transformation, servitisation and service design.

Andrea Bikfalvi is based at the Department of Business Administration and Product Design, University of Girona, Girona, Spain. She is teaching and a Research Staff, ‘Serra Húnter Fellow’ since 2018 at the University of Girona in Spain. During her trajectory, she conducted several research projects for the regional Government of Catalonia, Spain, as well as a series of EU projects. She visited and actively collaborates with researchers in relevant research centres and Higher Education Institutions in Germany, Finland, Croatia, Portugal, etc. Her main research interest is in holistic approaches of innovation in all types of organisations – mainly, but not limited to – public administration, private enterprises and education. Her expertise is in strategy, organisational innovation and business model configuration.

Anna Arbussa is based at the Department of Business Administration and Product Design, University of Girona, Girona, Spain. She is an Associate Professor at the Department of Business Administration and Product Design of the University of Girona. She received her PhD from the same institution in 2001. She has worked on various European projects on electronic payments systems and published articles in the field of technological innovation and technology management. She is currently also working on public health management and on human resources management.

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Customer Stories / Automotive

BMW Group Uses AWS-Based Data Lake to Unlock the Power of Data

BMW Group uses AWS to process 10 TB of data daily from 1.2 million vehicles, create a voice-activated personal in-vehicle assistant, and derive real-time insights from vehicle and customer telemetry data. The organization, based in Germany, is a leading manufacturer of premium automobiles and motorcycles. BMW Group runs its Cloud Data Hub on AWS, using Amazon SageMaker to train models for predictive analysis.  

Overview | Opportunity | Solution | Outcome | AWS Services Used

Democratizes data

Processes terabytes, resolves issues, accelerates.

The BMW Group , headquartered in Munich, Germany, is a global manufacturer of premium automobiles and motorcycles, covering the brands BMW, BMW Motorrad, MINI, and Rolls-Royce. It also provides premium financial and mobility services.

For the past several years, the BMW Group has worked to stay at the forefront of the automotive industry’s digital transformation by using data and predictive analytics. According to Kai Demtröder, BMW Group vice president of data transformation, artificial intelligence, data and DevOps platforms, “To stay innovative, we are focusing on creating new digital and connected experiences and driving change in our value chain toward improving both efficiency and effectiveness by enabling data-driven decisions." To generate these innovations, in 2015 the BMW Group created a centralized, on-premises data lake that collects and combines anonymized data from sensors in vehicles, operational systems, and data warehouses to derive historical, real-time, and predictive insights.

The BMW Group also sought to give data consumers real-time access, for example, to vehicle telemetry—such as information on speed, location, temperature, battery and brake levels, and engine status. In addition, it wanted to integrate analytics and machine learning into the data lake to accelerate the development of new, innovative services. And, as a basic prerequisite, the solution would have to provide the governance required to ensure compliance with privacy and security regulations.

We are just starting our journey with AWS, and we look forward to helping our business fulfill its strategy of driving innovation into the future."

Kai Demtröder Vice President of Data Transformation, Artificial Intelligence, Data and DevOps Platforms BMW Group

Opportunity | Empowering a Data-Driven Approach

In response to these challenges, the BMW Group decided to re-architect and move its on-premises data lake to the Amazon Web Services (AWS) Cloud. The company’s Cloud Data Hub (CDH) processes and combines anonymized data from vehicle sensors and other sources across the enterprise to make it easily accessible for internal teams creating customer-facing and internal applications. Ultimately, the company found that AWS offered the agility and flexibility it needed, along with the necessary footprint to support users across the globe.

Prior to the migration, the BMW Group’s rigid on-premises data lake failed to meet the ever-increasing needs of data engineers and analysts . Running interdependent workflows, the old data lake couldn’t handle multiple tenants well and, as a consequence, the BMW Group’s platform, ingestion, and use case teams required complex coordination to work on projects and ran into organizational bottlenecks, slowing their pace.

The BMW Group turned to a mix of AWS managed services—including Amazon Athena , Amazon Simple Storage Service (Amazon S3), Amazon Kinesis Data Firehose , and AWS Glue —to reduce the setup’s complexity by differentiating components and create an environment capable of scaling to meet the needs of data engineers. In addition, the teams could now have their own DevOps process from end-to-end, giving them the autonomy and agility needed to continue to innovate. Moreover, the BMW Group implemented a modern web portal that helps users of the CDH discover trusted datasets using an advanced search algorithm and easily query data to generate new insights.

Solution | Democratizing Data Usage at Scale

Using AWS services, the BMW Group ingests a massive amount of data every day. Currently, millions of BMW and MINI vehicles are connected to the CDH via BMW Group’s highly secure backend, processing terabytes of anonymous telemetry data daily. The company uses this data to monitor vehicle health indicators such as check control errors to identify potential issues across vehicle lines. This enables the BMW Group to leverage fleet data ingested, collected, and refined from the CDH to better resolve issues, even before they impact customers.

To better manage this data, the BMW Group introduced the notion of “data providers” and “data consumers” to increase both the autonomy and agility of its software engineering teams. Data providers ingest and transform data with AWS services such as  Amazon Kinesis Data Firehose , AWS Lambda , AWS Glue, and Amazon EMR . Data consumers can then use services such as Amazon Athena, Amazon SageMaker , AWS Glue, and Amazon EMR to leverage data for their use cases. Both providers and consumers use these services in their own accounts and only share well-defined interfaces that can be controlled by a central API, helping prevent bottlenecks. The individual data layers are stored in Amazon S3 buckets, and their schemas are registered in the AWS Glue Data Catalog.

Besides collecting technical metadata in the AWS Glue Data Catalog, the BMW Group found that building up a human-readable data catalog was essential to democratizing data organization-wide. This effort would ensure a high degree of transparency about which data assets are gathered in the CDH and how. The front-end application Data Portal serves as a data explorer to boost the productivity of data analysts, data scientists, and engineers by clearly displaying data resources and offering a “popularity index” based on data usage patterns for more than 500 users across the organization.

In addition, the CDH leverages GraphQL via AWS AppSync to build scalable and universal APIs for data providers and consumers alike, increasing development flexibility. Unlike traditional REST APIs, interfaces built on GraphQL are well-suited to support evolutionary requirements such as representing metadata for the data catalog or providing heterogeneous data collected from connected vehicles. Developers have the flexibility to define the payload structure and query parameters to fetch the data they need for a given use case. This helps them build applications significantly faster than before because they no longer have to create a new set of APIs for each project with a different set of data requirements.

Outcome | Accelerating Innovation

The centralized and AWS-based data lake forms the BMW Group’s foundation to develop data-driven IT solutions and enables the company to automatically and independently scale on a serverless architecture. It can therefore innovate faster than it could with the previous on-premises solution, which required infrastructure management and capacity planning for each new initiative.

The BMW Group will open source key components surrounding the CDH including its APIs, architecture, and Data Portal. This is additionally fueled by the fact that BMW Group is a first day member of Gaia-X, the European initiative for establishing sovereign data spaces.  

Going forward, the BMW Group will continue to scale out the CDH platform’s capabilities to further accelerate its digital transformation and drive additional value across the business, empowering innovative customer experiences, new mobility services, and internal business insights. Demtröder concludes, “We are just starting our journey with AWS, and we look forward to helping our business fulfill its strategy of driving innovation into the future.”

To learn more, visit aws.amazon.com/automotive .

Figure 1: CDH architecture overview

Figure 2: CDH portal view

About the BMW Group

With its four brands—BMW, MINI, Rolls-Royce and BMW Motorrad—the BMW Group is a leading premium manufacturer of automobiles and motorcycles. The company also provides premium financial and mobility services.

AWS Services Used

Amazon kinesis data firehose.

Amazon Kinesis Data Firehose is the easiest way to reliably load streaming data into data lakes, data stores, and analytics services. It can capture, transform, and deliver streaming data to Amazon S3, Amazon Redshift, Amazon Elasticsearch Service, generic HTTP endpoints, and service providers like Datadog, New Relic, MongoDB, and Splunk.

Learn more »

Amazon SageMaker

Amazon SageMaker is a fully managed service that provides every developer and data scientist with the ability to build, train, and deploy machine learning (ML) models quickly. SageMaker removes the heavy lifting from each step of the machine learning process to make it easier to develop high quality models.

AWS AppSync

AWS AppSync is a fully managed service that makes it easy to develop GraphQL APIs by handling the heavy lifting of securely connecting to data sources like AWS DynamoDB, Lambda, and more. Once deployed, AWS AppSync automatically scales your GraphQL API execution engine up and down to meet API request volumes.

AWS Glue is a fully managed extract, transform, and load (ETL) service that makes it easy for customers to prepare and load their data for analytics.

Explore BMW Group's journey of innovation using AWS

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Executive Summary

The BMW group was a Multinational organization, started by Karl Rapp in 1913 and was involved in the manufacturing of range Automobile Cars and Motorcycles that grew in subsequent years of operations. In addition to that, it also provides financial services through leasing and loans, providing as an option for those customers, who cannot afford to make Full payments on immediate basis.

It also diversifies into international operations due to which its exploits opportunities through selling in International markets. It also acquired various companies in international destinations such as the United Kingdom and Germany. Company also bought the UK based company Rover, through which it acquired the brands like, Land Rover, MINI, and GM. The company’s goal was to rekindle its existing models in these brands.

Question 1:

Evaluation of BMW’s transaction and operating exposure

Due to external factors affecting negatively, such as, the ongoing weakening of US dollar and currencies like, yen in which the company is operating is leading to high cost of raw materials.

Since the company is buying raw materials for its production from different countries like Japan, etc. therefore the company’s expenses are in foreign currency and for which it is subjected to exchange rate fluctuations, which will determine the operating exposure to BMW.

Moreover, its operations are in almost all of the major countries around the world where its sales subsidiaries are located. The revenue generated from these countries in currencies such as Japanese Yen, US dollars, etc. are then converted into euros as a base currency. These transactions give rise to transaction exposure where the transactions are exposed to exchange rate risks.

In order to evaluate these exposures, the complete analysis of transactions related to sales and manufacturing operations need to be considered. Although the sales are high enough to cover the high costs of the company but still the deterioration of foreign currency ratios are exerting pressure on the financial results of the company.

Question 2:

BMW’s hedging strategy

The current hedging strategy of BMW is more like natural hedging strategy. Considering the current hedging strategy in detail.

Firstly, it uses natural hedging through which the company tries to match the currency of its operating revenues with its operating expenses in order to cancel out any exchange rate effects to some extent. Company has issued instructions and risk figures for its global network, while all of its local treasury centers were to review the exposure on weekly basis which is then evaluated at the central treasury department.

Secondly, BMW uses an internally developed model, which it used to plan foreign exchange hedging. This model shows that an equilibrium rate, for all major currencies that BMW deals with, indicating their over or undervaluation. The model mainly focused on long-term hedges usually for six years. The difference between the equilibrium rate and spot rate are then evaluated for evaluating the exposure.

When the rate falls below the equilibrium range i.e. 1.15 US$/€ to 1.17 US$/€, the company then uses forward contracts in order to hedge, while in case of favorable rates the currency hedges are made to short term.

Apart from this, company also produces a 100% hedge by using two options consisting of long and short, by which it produces non-zero option, so it incurred no expense in using them. For example, company receiving the premium on one sold instrument and on other hand had to pay premium on bought instrument, as a consequence the premium cancels out the cost leaving the company neither better off nor worse off.

Furthermore, the company also uses ‘cascade strategy’ in order to hedge foreign currency. In which the initial coverage was less that 100% of the estimates while for the actual subsequent business years the coverage ratio began to fall. This is therefore used to evaluate the varying amount of hedging in different periods.

Some of the strategies seem to be good because using options enable the organization to take advantage of the upside gains from the transaction while hedging against the downward. In addition to this, it also avoids the premium cost through using two sided options. However, the internally generated model used was not appropriate due to operations and changing of exchange rates of related economies.

Question 3:

Appropriateness of Equilibrium Exchange Rate

The range of equilibrium exchange rate as used by BMW as a part of its currency hedging strategy, that is, 1.15 US$/€ to 1.17 US$/€ might be appropriate in relation to shorter term expectations of the exchange rates. But for the longer run the range might become unsuitable for BMW to be used as the equilibrium rate used for conversions of currency into euros.

The reasons for the inappropriateness of the equilibrium exchange rate range for its long-term usage are possibly the fact that economies are exposed to rapid changes in relation to changes in government policies of the economy. For example, the determinants that mainly causes the exchange rate to be changes for an economy are usually based on the effects resulting from the government policies such as, interest rates, tax rate, management of balance of payments account, national treasury, etc. and change in any of these can impact the value of the currency leading to changes in exchange rates.

Since, BMW’s operations are carried out in several economies around the world which means that the company is not only open to changes in its domestic economic factors but also due to changes in other economies. Therefore, it can be concluded that this range may not be appropriate for BMW in the longer-run.

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Case Study: LHH Helps Our Client Achieve Mansfield Certification

When a global IT consultancy sought to elevate its commitment to diversity and inclusion, it turned to LHH for expert guidance. This case study explores how LHH's DEI solutions empowered the firm to achieve the prestigious Mansfield Certification, transforming its approach to leadership and fostering a more inclusive workplace.

Business Challenge

When the legal department of our client — a Fortune 500 Global organization based in Dublin, Ireland, specializing in information technology services and consulting — sought to obtain a Mansfield Certification, they turned to LHH for expert assistance.

Mansfield Certification, designed by Diversity Lab, is a structured and rigorous certification process that helps that sets a high standard for fostering equitable opportunities for leadership advancement within legal departments and external counsel teams. Achieving this certification is no small feat — it requires legal departments to implement a behavioral science and data-driven approach to expanding the pool of qualified leadership candidates, ensuring that at least 50% come from historically underrepresented groups. These groups include women lawyers, racial and ethnic lawyers, LGBTQ+ lawyers, and individuals with disabilities. Additionally, certified legal departments must enhance transparency by documenting and publicly sharing the criteria for senior-level roles.

Given the complexity of the process, our client knew that obtaining this particular certification would demand the finesse and expertise of skilled specialists.

An imperative of the process was to help track the diversity of applicants submitted for consideration and to ensure that there was no bias during the hiring decision. Therefore, our solution consisted of the following components:

• All resumes submitted to our client were scrubbed to contain no name, educational experience, or other identifying information.
• Each applicant linked to the job order within Bullhorn, our applicant tracking system, received an anonymous survey requesting gender and race disclosures.
• LHH submits a document detailing each job order and the survey responses associated with it on an annual basis.

To support our client's goals, LHH leveraged a wide range of candidate sources and meticulously tracked candidate and associate pools. This approach enabled the legal team to meet the rigid requirements needed for Mansfield Certification and ultimately foster a more diverse and inclusive leadership team.

After the first year, our client became Mansfield Certified, joining an exclusive list of organizations that meet the certification requirements. Some impacts to date:

• 50 legal departments certified in 2023
• Enhanced advancement opportunities and processes
• Improved candidate tracking and transparency

In today’s business landscape, organizations seek to build a workforce that not only champions DEI but embodies it wholeheartedly. Embracing the diverse perspectives and skills of employees from all backgrounds is not just the right thing to do — it’s critical for businesses that want to build a stronger, more adaptable, and more successful workforce of the future. Obtaining certifications such as the Mansfield can serve as a catalyst for advancing your business in its pursuit of more impactful DEI strategies. To benefit from our experience and create a DEI strategy that can make a real difference for your organization, please contact us today .

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Apoorva Mandavilli covered the 2022 mpox outbreak and the Covid-19 pandemic.

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Embracing Gen AI at Work

• H. James Wilson
• Paul R. Daugherty

The skills you need to succeed in the era of large language models

Today artificial intelligence can be harnessed by nearly anyone, using commands in everyday language instead of code. Soon it will transform more than 40% of all work activity, according to the authors’ research. In this new era of collaboration between humans and machines, the ability to leverage AI effectively will be critical to your professional success.

This article describes the three kinds of “fusion skills” you need to get the best results from gen AI. Intelligent interrogation involves instructing large language models to perform in ways that generate better outcomes—by, say, breaking processes down into steps or visualizing multiple potential paths to a solution. Judgment integration is about incorporating expert and ethical human discernment to make AI’s output more trustworthy, reliable, and accurate. It entails augmenting a model’s training sources with authoritative knowledge bases when necessary, keeping biases out of prompts, ensuring the privacy of any data used by the models, and scrutinizing suspect output. With reciprocal apprenticing, you tailor gen AI to your company’s specific business context by including rich organizational data and know-how into the commands you give it. As you become better at doing that, you yourself learn how to train the AI to tackle more-sophisticated challenges.

The AI revolution is already here. Learning these three skills will prepare you to thrive in it.

Generative artificial intelligence is expected to radically transform all kinds of jobs over the next few years. No longer the exclusive purview of technologists, AI can now be put to work by nearly anyone, using commands in everyday language instead of code. According to our research, most business functions and more than 40% of all U.S. work activity can be augmented, automated, or reinvented with gen AI. The changes are expected to have the largest impact on the legal, banking, insurance, and capital-market sectors—followed by retail, travel, health, and energy.

• H. James Wilson is the global managing director of technology research and thought leadership at Accenture Research. He is the coauthor, with Paul R. Daugherty, of Human + Machine: Reimagining Work in the Age of AI, New and Expanded Edition (HBR Press, 2024). hjameswilson
• Paul R. Daugherty is Accenture’s chief technology and innovation officer. He is the coauthor, with H. James Wilson, of Human + Machine: Reimagining Work in the Age of AI, New and Expanded Edition (HBR Press, 2024). pauldaugh

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BMW-MINI Harvard Case Solution & Analysis

Home >> Marketing HBS Case Solutions >> BMW-MINI

 Introduction

The Automotive Industry is a worldwide industry having a massive presence of manufacturers, intermediaries and consumers all over the globe. Differentiations in the automobile industry are evaluated by the production of cars that vary in size, price and specifications. Overall combined turnover of the global car industry, is estimated at $2 trillion until date, making it equivalent to the sixth largest economy of the world. BMW was founded in 1916, as a German automobile, motorcycle and engine manufacturing company. Currently, it stands as a global brand catering to consumers who can afford the luxury to buy posh vehicles (Amos, S. 2011).

 BMW-MINI is a product of the BMW Corporation that attracts buyers who want to buy the brand’s product but for a low price, with classiness and compact size. MINI as the name suggest is a vehicle, which is manufactured to be compact but a spectacle to the eye boasting a sporty, classy and energetic image. It came into being in 1959 and through the years has established itself as a highly sought out brand for not just regular consumers but for celebrities as well. BMW-MINI, has survived the test of time and today BMW’s prime product is catering to purchasers who are interested in buying compact vehicles (BMW Group 2012).

 SOSTAC Analysis of BMW-MINI

SOSTAC analysis is going to be the main framework through which BMW-MINI’s marketing presence will be highlighted and the features, which define this framework, are situational analysis, objectives, strategy, tactics, actions and control (Kurtz, D.L. 2009).

Situational Analysis

Situational Analysis of BMW-MINI begins with the definition of the product’s goal, which states that MINI is a brand that focuses on providing reasonable product consumers at low price, which meets all his desires regarding attractiveness, sportiness and classiness. The compact feature of the car and additional features like reduced fuel consumption, customized engine and low price makes it an attractive  commodity for the consumer to purchase (BMW Group ,2012).

 Customer’s perception about the product is very much influenced by the fact that it is a compact solution to all their car troubles. Its strengths can be categorized as its longevity to survive as a viable commodity for the consumer, in addition to the features of low fuel consumption, cheap price and attractive nature. Its opportunities include further infiltration into international markets especially the Asian markets and growth of the brand’s overall production that was estimated to be 216,538 units in the case (Amos, S. 2011).

MINI is a sustaining innovation that does not creates new markets or values as in the case of disruptive innovation but evolves existing markets with new values as it has done by extending BMW-MINI’s original product line with the introduction of new models like MINI-Cooper, Hatch, Convertible and Countryman. Due to the brands popularity BMW has kept the brand continuation thereby; ignoring the transaction cost in favor of economic prosperity (Lindstrom, M. 2005).

            Jochen Goller director of MINI-UK said “The new MINI was introduced as a technological evolution and a branding revolution”. This indicates that objectives are clearly defined for MINI that involves continuous improvement and innovation in its technology and to brand the product in such a way that creates value for the consumer (Brand Report. 2011).

Network Effect is a very important concept to understand here because in order to create value for the product, the company must create awareness about it and MINI has done it through networking; that is by bringing intermediaries into play like advertising agencies and social networking forums. MINI wants to provide customer satisfaction and create brand loyalty, so it can sustain itself in the market of compact vehicle manufacturers by offering wide variety of MINI models and customized MINI vehicles (Trehan, R. 2009).

BMW-MINI segments its market as a compact size vehicle manufacturer and targets a market of individuals who want to buy low cost but branded BMW cars. It positions itself as a car solution for all consumer problems whether they are of commuting, fuel cost and high prices; MINI resolves all of them through its low price, fuel efficiency and compact size. It also creates an online value proposition by providing on its website the facility of customization of the car and test-drives to attract aspiring buyers (Madslien, J. 2010).

Another strategy that BMW-MINI uses, which will be further elaborated in tactics is media marketing which allows it to run promotional campaigns on the TV, Social media and other means of mass communication (Face book 2012).

            According to the marketing mix provided in the case, MINI continuously innovates its product line and brings in more models as stated in the case like MINI-Clubman or Countryman. It also provides test-drives to encourage buyers for early booking of models that are introduced in the market. Its price setting is done in such a way, which influences buyers to acquire the product as its prices are reasonable for a branded car and for different models, these differentiated models are well differentiated to accommodate a customers buying power (Vered, A. 2007).............................

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Modelling ecological hazards and causal factors in the yellow river basin’s key tributaries: a case study of the kuye river basin and its future outlook.

1. Introduction

2. materials and methods, 2.1. overview of study area, 2.2. data sources, 2.3. research methodology, 2.3.1. research framework, 2.3.2. land use structure, 2.3.3. landscape patterns and landscape ecological risk, 2.3.4. geographical detectors, 2.3.5. plus model, 3.1. spatiotemporal distribution of land use, 3.2. land use dynamic structure, 3.3. landscape ecological risk assessment results, 3.3.1. landscape pattern index, 3.3.2. spatiotemporal dynamics of landscape ecological risk, 3.4. driving factors of landscape ecological risk, 3.4.1. power of determinant, 3.4.2. interactive detection, 3.4.3. landscape ecological risk zone detection and analysis, 3.5. scenario simulation prediction of future development of land use and landscape ecological risk, 3.5.1. land use prediction results, 3.5.2. landscape ecological risk prediction results, 4. discussion, 4.1. analysis of land use and landscape ecological risks, 4.2. analysing natural and social economic factors, 4.3. optimisation suggestions for future regulatory measures and policy formulation, 5. conclusions, author contributions, institutional review board statement, informed consent statement, data availability statement, conflicts of interest.

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Wu, Y.; Qin, F.; Dong, X.; Li, L. Modelling Ecological Hazards and Causal Factors in the Yellow River Basin’s Key Tributaries: A Case Study of the Kuye River Basin and Its Future Outlook. Sustainability 2024 , 16 , 6977. https://doi.org/10.3390/su16166977

Wu Y, Qin F, Dong X, Li L. Modelling Ecological Hazards and Causal Factors in the Yellow River Basin’s Key Tributaries: A Case Study of the Kuye River Basin and Its Future Outlook. Sustainability . 2024; 16(16):6977. https://doi.org/10.3390/su16166977

Wu, Yihan, Fucang Qin, Xiaoyu Dong, and Long Li. 2024. "Modelling Ecological Hazards and Causal Factors in the Yellow River Basin’s Key Tributaries: A Case Study of the Kuye River Basin and Its Future Outlook" Sustainability 16, no. 16: 6977. https://doi.org/10.3390/su16166977

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