Global Team Assignment (gta)
Insight in Green Technology (105)
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- Mature Distribution Channels and After-Sale Services (74)
- Pricing Strategy and Brand Image (92)
- Defect on Battery Products (93)
- Competition with International Brands (67)
- OPPORTUNITIES
- Incompleteness of New Energy Market (66)
- Competition of other Car Manufacturers (101)
Insight in Green Technology (105)BYD has a deep understanding about the automobile market and holds great insight about the future trend of the industry. With the increased awareness for environmental protection, BYD anticipated that green energy and energy saving will be an important issue and future direction for car manufacturers. With the prospect prediction of Chinese economy and the huge consumer basis in China, the electric car products of BYD has become the first choice for the consumers who has concerns about sustainability, energy consumption and environmental protection. For example, the sales of E6 have shown 92% growth in 2012 and 2013 since it is launch while the other gasoline powered models have seen reduced year of year (YoY) growth (see below chart). 
Figure 11: BDY Sales Figures (Dec-13 to Feb-14) Mature Distribution Channels and After-Sale Services (74)Incorporated in 1995, BYD has established distribution channels and long-term relationship with the dealers. With the existing customer base, BYD will be able to make sales in efficient manner. In addition, there is a lot of after-sale service shops established in the major cities in China and globally. They provide the consumers one-stop service from maintenance to loan services. The dealers offer competitive loan interest rates in order to attract the consumers to buy from BYD. 
Figure 12: BYD Global Locations Pricing Strategy and Brand Image (92)The pricing strategy of BYD is very favorable and appealing to the young generations and white collars. It is considered affordable and is relatively cheaper among the similar car models. [IsB] In addition, BYD has established its own image and reputation in China as face of Chinese manufactured cars. Some of its supporters purchase from BYD for the purpose of encouraging the success of local brands. The loyalty of the Chinese consumers has become strength for BYD in the Chinese market especially in the younger generation. WEAKNESSDefect on Battery Products (93)The production of battery products for BYD faces several issues. The quality of the battery is not stable and frequently has defects. The technology in developing battery products doesn't seem to be up to certain standard that the consumers will trust. While BYD is in discussion with Tesla, who also encounters the same issue with BYD, the solution has not been determined so far. Moreover, the patent disputes over the battery related technology could also become a potential risk for BYD while it further expands its market in electric cars. [BYD] Competition with International Brands (67)Although some of the BYD purchasers are being supportive and encouraging for the Chinese local manufacturers, it’s not understood if the consumers in China do make distinction on the international and local brands. When speaking about international brands, the consumers believe that good quality and good technology are the reasons for buying an imported car. Therefore, the competition BYD faces both in China and overseas is rigid. OPPORTUNITIESGovernment Support for Green Energy (177)The Chinese government has published different policies and plans to continuously support the development of electric cars. Considering the severe air pollution among major cities, the Chinese government realizes the importance of working on sustainable energy and environmental protection. Therefore, in 2012, the government launched “100 Thousand New Electric Cars on the Road” activities through out 13-20 cities in China. In 2015, it is anticipated that the green energy cars will amount to 20% of the sales of the vehicles in China. By doing so, the government expects to reduce 20% of the energy consumption comparing to 2008. The government has planned to publish more incentives for the car manufacturers to enter into the electric car market and is in the process of enacting relevant rules regarding the electric car production. That being said, we can anticipate that the electric car market will be increasing with such preferential government policies. In this regard, BYD certainly has its advantages as the first comer to the market and will set up entry barriers for other competitors to come in. THREATIncompleteness of New Energy Market (66)As a new emerging market, it is still waiting for a complete and systematic framework and ancillary procedures to support the new energy market, including the relevant technology, the legal protection, the industrial standard, the government policies and the consumer behaviors. Therefore, BYD needs to make efforts on the market research as well as interfacing and influencing government policies or risk operating in an unfriendly environment. Competition of other Car Manufacturers (101)The competition among car manufacturers is severe in terms of the pricing strategy, the promotion, R&D capabilities, and most important, the quality of the products. As stated earlier that there are at least 20-30 major car brands doing business in China. As such, if the other major car manufacturers being entry into EV market, BYD may not be able to compete with the international car manufacturers in terms of the advance technology such as Tesla. Also, BYD as a local manufacturer has not fully explored its opportunities through the promotion and advertisement, which process is slightly slower than the other competitors. [Angel to update the chart and send to Phil later. ] Figure 3: BYD SWOT Matrix Download 2.88 Mb. Share with your friends:
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