Company Has Its Own Standards Research Proposal

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The company owns one of the world's most recognizable luxury car brands. Without catering to the mass market, BMW holds a 2% market share in the U.S. (Wall Street Journal, 2009), which constitutes a much higher market share in the luxury segment. This competitive advantage is necessary because the luxury car segment has long relied on track records of excellence -- the long history and enormous strength of the BMW brand supports its luxury positioning (Franzen, 2007). The company is successful without having to move into the "cost leadership" segments of the market.

3. Bridgestone is highly oriented to vertical integration. The company produces its own rubber, in order to match the specifications for its tires. Bridgestone therefore keeps its production and product development functions in-house.

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This allows the company to have a high degree of uniformity in its products.

The company performs inbound logistics and operations, primarily. It is also responsible to a lesser extent for outbound logistics, sales and service, but the emphasis is on procurement and product development.

Bridgestone gains benefits from vertical integration because it has strict control over its inputs. This allows for better quality control and better new product development. However, this vertical integration is expensive and makes the company that much more difficult to run, with multiple units utilizing multiple competencies. However, vertical integration gives the company more control over its strategic direction and allows it to build the critical mass it needs to meet its objective of becoming a global organization.

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