Introduction The BMW group is a renowned maker of premium automobiles. It targets the global market when manufacturing cars. The company has remained operational for close to a century now since its foundation in 1916. One critical aspect that has been successful in sustaining the group’s many years of business and production is its focus on sustainability management (BMW par. 1). More importantly, the BMW Group has succeeded in formulating a practical business strategy, with the intention of minimizing risk, optimizing new business opportunities, as well as overcoming emerging social and business tough times in advance. This paper seeks to explore the resource based view and the dynamic capabilities of the firm. In particular, the paper will investigate these important business aspects with respect to the company’s recent acquisition of a carbon fiber plant, the prospects of BMW working in partnership with Toyota in the future, as well as its anticipation of turning ecological in its operations. Resource Based View The BMW has continued to expand its strategic potential by investing heavily in new resources with the ability to assure its great success. This innovation has not only been focused on the internal capacity of the firm, but to the external capability as well. In 2010, for instance, the BMW Group initiated plans with a partner firm, SGL Group, to form the SGL Automotive Carbon Fibers (BMW Group par. 1). This significant resource that the firm opted to build sought to establish an elaborate and modern carbon fiber manufacturing plant worth more than US$ 100 million. The BMW group had plans of developing sufficient infrastructure to make CFRP for sale to other car manufacturers who want to incorporate the CFRP technology into the future concepts of car making. This special resource has since boosted BMW’s capability for a new car model that is targeting urban mobility (BMW Group par. 1). Furthermore, the automotive carbon resource boosts BMW’s focus on achieving sustainable business operations at a time when environmental pressures faced by automobile manufacturers have grown in magnitude. The location the plant in Moses Lake, WA was a tactful move to take advantage of the available hydropower, which is both recyclable and environmentally friendly. In addition, it was aimed at maximizing the benefits of the cheaper energy available in Washington. Other than energy reasons, the BMW Group decision to establish the carbon fiber plant in Washington targeted the favorable infrastructure conditions in the state, as well as the elaborately existing utilities, and the comprehensive skilled labor force available. The combination of these strategically critical resources helps the BMW to boast of immense core competency that is not enjoyed by other industry players who also emerge as greater competitors. Valuable resources of any firm are characterized by uniqueness in terms of being hard to imitate. They should also be constantly upgradable. The BMW Group’s carbon fiber plant passes as a hard resource to imitate, especially given the resources required to set up a similar plant (“Economic Indicators” 71). Additionally, since the inception of the plant, BMW has been planning for the gradual expansion of its production capacity from the current 3,000 tons to a larger capacity of 9,000 tons by the beginning of 2015. Altho