byd strategy

byd strategy

  • Submitted By: dhomun
  • Date Submitted: 09/23/2015 10:45 AM
  • Category: English
  • Words: 622
  • Page: 3

Strategic Analysis of
BYD
Anuj Gandhi
Michael Pottratz
Chong Zhang
Di Zhang
Xuemin Hou
Lu Yang
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Li
Li

6.941
6.941

Introduction:
• BYD Automobile was established in 2003
under the leadership of Wang Chuanfu
• In a span of 8 years it is the sixth largest car
manufacturer in china

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• The parent company of BYD Automobile is
BYD Co Ltd .
• Vision :To be the leading car manufacturer
in 2025

Li
Li

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6.941

Political

Sociological
• Huge population but less space
and hence public transport is
of extreme importance
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Li
Li

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• Economic conditions around
the world are weak and car
sales have declined in the last
one year

Economic

• Support from Chinese
government
• The holding company has to be
a Chinese company

Technological

• Inadequate power lines

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Li
Li

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6.941

Core Competence :
lithium ion technology,
System integration,
Project management

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Distinctive
Competence :
Low cost
High quality

Competitive
Advantage:
Low cost labor,
lithium ion scale of
production

K e y R e s o u r c e s a n d Va l u e - A d d e d F u n c t i o n s

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Very High

High

Modest

Low

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Li

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Non-global
distribution

Lithium ion
battery

Lithium

Financial Performance:
Liquidity Ratios
1.4
1.2
1
0.8
0.6
0.4
0.2
0

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Li
Li

6.941
6.941

Current Ratio

Liquid Ratio

Financial Performance
Profitability Ratios
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%

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Li
Li

6.941
6.941

Net Profit Margin
Return on Equity

Return on Total Assets

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Li
Li

Strength (Internal)
Distinctive competence and
competitive advantage :
lithium-ion technology and
manufacturing
Human Resources: Low cost
Labor

Weakness (Internal)

Opportunity (external)
Political: Government policy
support.
Socio-Cultural:...

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