Byd Auto
International Expansion Opportunities for BYD Auto | Country-Based Project |
THE UNIVERSITY OF AUCKLAND
BUSINESS SCHOOL
Master of International Business
Course: Global Business Operations
Course Code: Intbus 721
By Liwen Ji (1401148),
August, 2010
Contents
1. Executive Summary 1
2. Introduction 1
3. Internal Analysis: Strategy and Structure 1 3.1 Company Background 1 3.2. Value Chain Analysis 2 3.3. Porter’s Generic Strategy 3 3.4. Product Lifecycle & BCG Matrix 4
4. External Analysis 5 4.1. Initial Country Screening 5 4.2. The Economist Model of Country Analysis 5 4.3. Porter’s Five Forces 7
5. Market Entry Strategy 8 5.1. Timing of Entry and Market Entry Mode 8 5.2. International Strategy 8
6. Recommendation/ Summary 9
7. Conclusion 9
8. Appendix 10
9. References 16
1. Executive Summary
This study is committed to analyze the international expansion opportunities for BYD Auto, a China-based car manufacturer which is considering promoting its electric vehicle into other countries. In this article, a series of theories and framework have been used to analyze the company internal situation as well as external environment and risks. First of all, after briefly introducing the company, a value chain analysis and Porter’s generic strategy reveal the company’s value creation activities and overall strategy. A product lifecycle analysis and BCG matrix then identifies the property of the company’s products. The second part of this article mainly focuses on the destination of expansion as well as the suitable entry mode and strategies. After analyzing four countries – Australia, United States, United Kingdom and Brazil using the Economist model, the advantages of United States become obvious and incomparable. The further research indicates the recommended strategy is to form a joint venture with a local car manufacturer and undertake global standardization strategy. 2. Introduction
The accelerating consumption of
THE UNIVERSITY OF AUCKLAND
BUSINESS SCHOOL
Master of International Business
Course: Global Business Operations
Course Code: Intbus 721
By Liwen Ji (1401148),
August, 2010
Contents
1. Executive Summary 1
2. Introduction 1
3. Internal Analysis: Strategy and Structure 1 3.1 Company Background 1 3.2. Value Chain Analysis 2 3.3. Porter’s Generic Strategy 3 3.4. Product Lifecycle & BCG Matrix 4
4. External Analysis 5 4.1. Initial Country Screening 5 4.2. The Economist Model of Country Analysis 5 4.3. Porter’s Five Forces 7
5. Market Entry Strategy 8 5.1. Timing of Entry and Market Entry Mode 8 5.2. International Strategy 8
6. Recommendation/ Summary 9
7. Conclusion 9
8. Appendix 10
9. References 16
1. Executive Summary
This study is committed to analyze the international expansion opportunities for BYD Auto, a China-based car manufacturer which is considering promoting its electric vehicle into other countries. In this article, a series of theories and framework have been used to analyze the company internal situation as well as external environment and risks. First of all, after briefly introducing the company, a value chain analysis and Porter’s generic strategy reveal the company’s value creation activities and overall strategy. A product lifecycle analysis and BCG matrix then identifies the property of the company’s products. The second part of this article mainly focuses on the destination of expansion as well as the suitable entry mode and strategies. After analyzing four countries – Australia, United States, United Kingdom and Brazil using the Economist model, the advantages of United States become obvious and incomparable. The further research indicates the recommended strategy is to form a joint venture with a local car manufacturer and undertake global standardization strategy. 2. Introduction
The accelerating consumption of
References: An analysis on the current situation of electric automobiles. (2010). Retrieved from http://auto.163.com/10/0413/15/645LQS4300084AVK.html Aranches, S Business Monitor International. (2010). BMI 2010 Report. Retrieved from http://www.businessmonitor.com.ezproxy.auckland.ac.nz/cgi-bin/request.pl BYD Auto BYD: The HR management under “Home” culture. (2010). Retrieved from http://www.c114.net/job/c114job/news.asp?id=24479 Currently available electric cars Du, B. (May, 2010) BYD together with Daimler: the layout of new energy vehicle market. Retrieved from http://www.iceo.com.cn/glob/2010/0528/194451.shtml Electric cars: Mitsubishi (Now), Nissan 2010, BYD 2010, Toyota 2012, Honda by 2015 Gosselin, L. (2009). UK Government Offers Huge Incentives for EV and Hybrids. Retrieved from http://www.ecoautoninja.com/eco-electric-vehicles/uk-government-offers-huge-incentives-for-ev-and-hybrids-96486/ Guangzhou Daily Newspaper Ingram, A. (2010). Electric Vehicles incentive guide: country by country. Retrieved from http://green.venturebeat.com/2010/07/30/electric-vehicles-incentives-guide-country-by-country/ Korzeniewski, J Liu, Y. (2010). BYD is better. Retrieved from http://www.p5w.net/stock/hkstock/gsxx/201008/t3119987.htm Nelson, B New age of openness - UK shares more than ever before. (2009). Retrieved from http://www.newsroom.firstdirect.com/press/release/new_age_of_openness_-_uk_share Loveday, E The evolution of western R&D management and the example of corporations in China. (2008). Retrieved from http://tech.sina.com.cn/s/2008-07-08/0646723566.shtml US: strong EV incentives to convince consumers 5 electric cars you can buy now. (2008). Retrieved from http://money.cnn.com/galleries/2008/autos/0806/gallery.electric_cars_now/5.html