BMW of North America: Dream It. Build It. Drive It

This case can be taught to MBA students or executives interested in the global strategy, marketing, or operations. Specific teaching objectives for this case include the following:

To underscore the importance of consumer behavior in strategic planning.
One of the reasons why BMW succeeded with its X3 marketing was that it was not only able to turn around the whole supply chain, but also design a consumer interface based on psychological and anthropological factors of the local target audience.
To examine the paradoxes related to diverse consumer choices and the ways it can be served by mass customization. According to Barry Schwartz’s concept, “The Paradox of Choice—Why More Is Less,” the elimination of choices greatly reduces the anxiety of buyers. The mass customization concept offers the benefits of diverse product offerings, but it also creates complexities in production and supply chain, hence hindering operational excellence.
To demonstrate alternative ways to engage an online sales channel in product distribution.
Part of the case explains how BMW managed to add a new functionality to traditional Web-based customization and convert it to a successful sales channel.
To illustrate the complexity of the supply chain for a modern manufacturing company.
The case examines large-scale operations such as global transfers of production lines and consequences of these operations at the retail level.