Strategic Analysis of
BYD
Anuj Gandhi
Michael Pottratz
Chong Zhang
Di Zhang
Xuemin Hou
Lu Yang
3
3
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
3
3
• The parent company of BYD Automobile is
BYD Co Ltd .
• Vision :To be the leading car manufacturer
in 2025
Li
Li
6.941
6.941
Political
Sociological
• Huge population but less space
and hence public transport is
of extreme importance
3
3
Li
Li
6.941
6.941
• 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
3
3
Li
Li
6.941
6.941
Core Competence :
lithium ion technology,
System integration,
Project management
3
3
Li
Li
6.941
6.941
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
3
Very High
High
Modest
Low
3
Li
Li
6.941
6.941
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
3
3
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%
3
3
Li
Li
6.941
6.941
Net Profit Margin
Return on Equity
Return on Total Assets
3
3
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:...