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Originally Posted by FogCityM3
Several of us have been saying this for a while now: that BMW straying from its enthusiast and performance roots will come to haunt them at some point and looks like it's starting to happen. Now there is a lack of differentiation with the other marques, many of whom have matched or surpassed BMW at their own game. I see this time and again across industries, once the focus on the core customer/values (that got a company to where it is in the first place) are lost, it is very hard to regain them. Porsche is a company that got it right.
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The analogy that stands out in my mind is with IBM circa late 1980s. Gertsner's book about how he ended up being begged to take the job to save the company in 1993 is an interesting read as it was within a few months of bankruptcy with its cash flow situation at the time. How did it get in this position? Like how most big bureaucracies evolve, it got big, fat dumb and happy and milked its loyal customer base for all it was worth (and this was from a company known through its past as having the best management and management training in the world). Once that path is started, it's essentially unstoppable from within as you're viewed as a trouble-maker, not a team player, etc, should you try to reorient the path of the company.
BMW is guilty of milking the customer base as best they can (like how when things got a bit tough in 2008-9, they massively increased parts prices knowing that they could simply milk the customer for more...worked for a while, but one thing it did was greatly increase the market for "OEM" parts marketplace, so whether it was a long-term wise decision or not, time will tell, but the main issue is that NOBODY is measured anymore on long term wise decisions. What gets rewarded gets done, and short term success is what gets rewarded these days...to heck with the long term). They have relied on a reputation built over many decades, customer good will amassed by millions of hours of hard work over the years, and now the "wise" stewards in charge will gather up that good will and try to extract it from the marketplace in as quick of a time as possible. Why? Simply because that is what is rewarded in today's world. Measurements, bonuses, rewards are all based on near-term performance, and using up very strong and loyal customer good will can result in a few years of outstanding financial results (i.e. witness today's situation
).
Which all plays into the main focus of large companies like BMW. It's long ago left being about the end user, the customer, and turned into a game of financialization all focused on the short term, next quarter, next year's numbers.