Analysis of Strategic Marketing Context and Critical Evaluation

This document provides an analysis of the strategic marketing context and critical evaluation of challenges to successful strategic marketing. It discusses the critical company analysis, situational analysis, competitor profiling, customer analysis, and strategic collaboration. The document focuses on BYD Energy, a Chinese manufacturing company, and provides insights into their mission, growth strategies, competences, and competitive advantages. It also highlights the target customer segments, customer behaviors, and trends analysis. The document is relevant for students studying strategic marketing and related subjects.

Analysis of Strategic
marketing context and
Critical evaluation

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Analysis of Strategic marketing in context and critical evaluation of challenges to successful
Strategic marketing..........................................................................................................................1
1. Discuss the critical company analysis.....................................................................................1
Situational Analysis....................................................................................................................2
Critical company analysis of BYD Energy......................................................................................3
company’s mission/vision:..........................................................................................................3
Directional and Growth strategies:..............................................................................................3
Competences and competitive advantages:.................................................................................4
Resource Based:..........................................................................................................................4
Critical Competitive Analysis..........................................................................................................4
competitor profiling....................................................................................................................4
Critical Customer Analysis..............................................................................................................6
Key target customer segments, behaviours and value sought.....................................................6
Customer behaviours and trends analysis...................................................................................7
Critical Strategic Collaboration & Contextual factors/issues..........................................................7
key market structure:...................................................................................................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The strategic marketing is framework of assessment which assort by specific organisation
that can enhance comparison for seeking competitions through focusing strength to provide
better service and value of customer. There are some role of strategic marketing where it
generates opportunities which focuses on new business optimisation that change the current
market environment such as invites new customers and unique tactics of selling product and
services for satisfy customer needs and wants (Ptok Jindal and Reinartz, 2018). The goal of
strategic marketing is to make towards most valuable organisation within positive differentiation
on the basis of high competition through consumer perspective. In this following report, the
organisation is selected Build Your Dreams(BYD) it is a Chinese manufacturing auto-mobiles,
battery powered bicycles, buses, solar panels, rechargeable batteries, trucks etc within having
headquarters in Shenzen. It has two major subsidiaries that acquired BYD vehicles as it was
founded in February 1995. As topics are covers in report is related to strategic marketing which
focuses on depth analysation about company's competitor, customer and other factors. In further
Second part highlight about strategic marketing theory, concept and model that guides towards
planning of future implication rectify in systematic manner.
MAIN BODY
TASK 1.
Analysis of Strategic marketing in context and critical evaluation of
challenges to successful Strategic marketing.
1. Discuss the critical company analysis.
The term company analysation is a systematic procedure which is evaluating about
company's related profitability, profile, product and services. As per company majorly follows
three types of account to analyse their financial status are Trading Account, Profit and Loss
Account and Balance sheet statements that generates the scope of operating, investing and
financial activities. In context of BYD company, to conduct organisational analysis for
investing their number of sales, demand, manufacturing, customer retention and current market
position in competitive automobile marketplace . (Paul and Mas, 2020). The equipments and
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other internal resources plays an important role to define structure that highlight assets and
liabilities.
Situational Analysis.
Overview of Company
As BYD Co. Ltd is a public industry, they manufacture Chinese auto-mobiles, trucks
and buses and solar panel etc. They acquire two main subsidiaries one is BYD electronics and
another BYD auto-mobile venture, these two business having common objective to invent high
tech innovations in technologies that facilitates satisfactory battery mechanism service.
Moreover, BYD manufacture different electronic equipments that utilise in small and large
vehicles from generation to storage the energy. application (O'Connor, Yang, and Jiang, 2018).
This industry is determined to effectively offer solutions by manufacturing eco friendly engines
to fit in vehicles or solar panels. In the year 2019 BYD company generate64.9 billion of
business.
Competition:
For BYD Auto Co. Ltd, having more high competition in automotive marketplace
where they tend to provide excellenec quality of electronic vehicles along with parts and other
equipments . There are few companies are indulge into inventing electronic vehicles like NIO,
Xpeng, Tesla and Chery. They are competitors of BYD to compete in worldwide. For
instance,Tesla is one of most influence automotive venture that overtakes automotive market in
current scenario by provide advanced technology driver less vehicles that prevail more
competitive advantages. Furthermore, in China there are many substitute electronic
manufacturing product and services. By analysation situation as per above BYD company
difficulty for sustainability by produced more innovation electronic products and reduced their
pricing level that can easily attract clients
Customer.
Main customers for BYD Auto Co. Ltd are the ones who are obsessed with advanced
technology and vehicles. This represents curiosity for buying as well as exploring vehicles from
the buyers perspective. The company mainly targets youth and middle aged people that are more
interested in the world of technology and auto mobile.
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Collaboration and context.
The BYD company collaborate with Hino Motors that signed with strategic alliance
agreement that determine towards upbrining advanced vehicles to battery electronic vehicles
from BEV(Battery Electronic Vehicles) development concept. . For utilise BEV concept is to
creates pollution free type vehicles that protect environment .
Critical company analysis of BYD Energy
company’s mission/vision:
Mission: BYD company founded in 1995 and it is related battery technology, their
mission is to change the structure of world by providing advanced electronic vehicles. It help to
reduces pollution and uncertainty of harmful fuel that causes impact of world 's environment.
BYD's products are generally introduce innovative or creativity products. leaders who involves
in multiple areas which related within battery electronic auto mobiles, buses, medium along with
heavy duties which mainly generates power generation and customer electronics.
Vision: The vision statement of BYD company is having more strategic plans towards
future sustainability in long term. Their aim is to facilitates eco friendly base electronic product
that facilitates polluted free vejicles for upomming generation. process (McCamley and
Gilmore., 2018). BYD wants to accomplish their objectives and use information to create better
decisions through planning for manuafcture BEV concept vehicles. . It is a comprehensive
statement that tend to investigate on which company is having their core strength that support
to gain high competitive advantages that support to achieve future goals in effective manner.
Directional and Growth strategies:
Directional Strategy is a game plan for company that decides and implement to increase
business, profits, explore different market to target and helps to accomplish objectives related
with particular business. The directional strategy also guides to multinational companies for
creates their own strategies as per situation and they pursue the work in individual basis
(Licsandru and Cui, 2019). For BYD company, Directional strategy can assor as well follows to
increase their growth, productivity, high customer retention, attain expected profits all these can
support to accomplish goals and objectives of company. Top level management handle and form
directional strategy where they appoints executive or manager to guide their staffs about how it
can works for organisation's long term benefits.
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Growth Strategies is framework of action plan that allows to accomplish the high level
of market share which is currently utilise in effective manner. It also emphasis to implement for
optimise more innovation types of product and services concept which increase level of
company to attain high competitive advantages (Khan, Freeman and Lee, 2020). Similarly, for
BYD company growth base strategy help to understand towards long term analysis such as
Diversification, Market and product development where overall factors helps to provide
information for BYD's product scope and challenges in automotive competitive market.
Competences and competitive advantages:
The term competitive advantages is for company perspective where it manufacture goods
or services better and more economic range that compare within competitors. . The competence
of BYD company is that they assort BEV concept technology for manufacturing automotive and
battery products in advanced level . It is company's USP in BEV technologies that increase the
value of product's specification to commence in better way for accomplish competitive
advantages.
Resource Based:
As BYD company is invents electronic base product and services i advanced factor
by using eco emission type and eco friendly technology that added in BYD's vehicles and
batteries to bring flexible way of product to attain competitive sources acquired.
Critical Competitive Analysis
competitor profiling
Basic Xpeng company Tesla Company
Profiling The Xpeng motors is Chinese base
electronic manufacture company.
Their headquarter located in
Guangzhou. Mountain, view
California (Kalverkamp and Raabe,
2018). They tend to invent new
technologies implement in batteries
and vehicles for more creativity
Tesla is an American electronic
vehicle and having clean energy
of venture based in Palo Alto,
California. Tesla focuses to build
artificial intelligence base product
and services. The invention
products are electronic cars,
battery energy storage from home
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and sustainability. They target
smart market which is more
integrated with advanced
technologies and Artificial
intelligence to produced unique
concept of product and
services.technologies. Xpeng has
acquire effective team of research
and development that scrutinize
information related with artificial
intelligence and automotive
upgradation technologies that helps
to experience as well as provide
better quality of product and
services to their customer
base and other related product
and services. It was founded in
July 2003. . Elon Musk who is
founder where he initially
contribute most of funding in
early days when he started thus
business . The main purpose of
Tesla is to helps expedite that
move to better sustainable,
transport and energy for
electronic vehicle and solar
power.
Strategies The Xpeng strategies is mainly
focuses on Directional strategies
that used to improve better growth,
profitability and gain market
share. . Managers and leaders plays
an important role to provide
guidance about how to sustain in
competitive market where their
marketing and promotional team
contributes to sell as well as
promote product and services to
sustain in automotive competitive
market place
Tesla is generally assorting
Directional an Growth base
strategies that guides to
implement more unqiue busienss
strategies to identify opportunities
and challenges international
market (Gorji and et. Al, 2018).
As company is one of most
ranked as world's best selling
which plug in battery electric
passenger which is car
manufacturing in 2019.
Competitive
Advantages
Their Competitive advantages is
sustaining in local market but for
Tesla is having a biggest
competitive strength is their
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internal level product and services
concept is not well aware that can
promote in competitive market
place.
electronic batteries and
innovation strategy that lead to
susatin long term in international
automotive market. . The generic
competitive strategy is helps to
build better competitive
advantages for more integration
about product and services
within industry.
Critical Customer Analysis
Key target customer segments, behaviours and value sought
STP approach:
It depicts three major steps where that represent about market relate segmentation,
targeting and positioning that tend to define about the shift in market on product and customer
conetxt . As for BYD company Stp approach that enhance to provide information related
market, customer and ranking in competitive marketplace for long time period. In context of
BYD, this model is used to identify about the importance of various stages in functioning of
business in order to achieve profit in business perspective.
 Market segmentation: This is a process that define about divides towards market into
small venture and target geographical location and demographic segmentation.
Geographical segment consists about to select region in which company's product
availability. This location factor r where BYD company can attain their presence
internationally (Bran-Piedrahita,, Valencia-Arias and Palacios-Moya., 2020)
Demographic segmentation factor that defines about to select their people on basis of
age, gender and different age groups for highlight potential customer to sell their
product. Through this process it can can easily increase the sales of market. BYD
company products is quite affordable and it can increase producing storage for
renewable energy.
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 Targeting: This is second step in STP analysation that highlight about company's
perspective to targeted customer that increase the sales and profitability towards
business. As per BYD company, Their target customers are consider youths and middle
age people who keen to interest in technologies and vehicles. Thus, it is an sort of tools
which comprises for us about company's that attract towards large groups of clients..
 Positioning: This is the last stage in the STP Approach, which focuses on ascertaining
ranking in competitive marketplace after mapping segmentation and targeting. BYD's
market must determine through variable and target customer to buy product. This will
increase the brand value and generate goodwill in this competitive market and will also
help optimise promotional strategies for products and services that will increase high
customer engagement
Thus, above factors are highlight about current segmentation, targeting and positioning for BYD
company. To objective to conduct STP approach to investigate about current situation in order to
selects market, customer and ranking value in competitive marketplace.
.
Customer behaviours and trends analysis
Customer behaviour is depicts about study of individual customers or collective people in
organisation perspective that emphasis for using of tangible products and services that
determines to satisfy their needs and wants. In situation of BYD company their customer
behaviour is mapped on the basis of approach their product and services . and eco-friendly .
Trend Analysis is better technique which is use for assess technical factor that attempts toward
predicts where future stock price which fluctuates on the basis of recent situation data. In today
scenario electronic vehicles are one of most trending innovative ideas that allows more growth in
competitive market place (Anwar, Thongpapanl and Ashraf, 2020). BYD company
manufactures electronic base vehicle that use to implement ideas that provide effective
outcomes in future competitive advantages.
Critical Strategic Collaboration & Contextual factors/issues
key market structure:
Market structure is defines about some business related variables such as number of
firms, barriers to entry and exists along with product differentiation etc. that consider to
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compete in competitive market. In perspective of BYD company, there is high scope of
competitors in technological as well as automotive market. Tesla, NIO, Xpeng these are similar
business structure that manufacture electrical batteries and vehicles .. Tesla is one of leading
advanced electronic base venture . To determine monopoly, oligopoly, monopolistic competition
and having perfect competition. There are some policies which emphasis more barriers as BYD
branch is situated in United Kingdom in which Brexit Market, that depicts about to business for
not trade in European Region which can generate more barriers in way of competitive growth.
Due to certain factor, it represents entry and exists in competitive market that enhance
challenges in terms of polices, raw material, manpower and others. The trends factor is consider
towards recent upgrade version of product and service demands to get implemented in effective
manner to attained get succeed for better competitive advantages.. For BYD they plan to initiate
for implement their own innovation that refers BEV concept automobile and batteries
manufacture eco-friendly vehicle factor .
INNOVATION STRATEGY:
Innovation strategy refers to creating new products & services as well as offering them to
the target consumers who are willing to use and pay for it. In simple words, it can be explained
as a strategy which is about depicting mission & vision of the organisation and also getting an
answer of the question that 'why a person or a company should do business with you'(Anfer, O.
and Wamba, S.F., 2019). It basically sets a boundary to the expected performance of the
company's innovation which structures innovation to accomplish the best possible output.
Innovation strategy can be best described as a crystal-clear roadmap for the future. Innovation
strategy of BYD includes (Innovation at BYD, 2018):
1. Investing in R&D department: A company like BYD Co Ltd. (Build Your Dreams)
actually invests huge amounts on Research and Development which is very much
necessary when it's about the world of Technology. The company works in auto mobile
sector, railways, technology (like batteries, mobile phones, etc.) and has a lot of ideas
and plans for innovation.
2. Choosing the best marketing strategy: When it comes to the field of technology the best
marketing strategy is creating, developing and promoting innovative products and
services. The company is now working with three core technologies of new energy
vehicles- Battery, Electric Motor and electric control (Innovation at BYD, 2018).
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According to BYD, it is the first car maker in the world which have complete knowledge
and hands-on experience in the three core technologies of Electric vehicles that are
batteries, electric motors and electronic controls.
3. Diversification: The company also focuses on the railways sector. The company is
recently developing the BYD Sky Rail which was developed by huge investment in
Research and Development with a huge team of more than 1,000 engineers that worked
for over a five-year long period with a high amount of RMB 5 Billion (Innovation at
BYD, 2018). The company also focuses on manufacturing Automotive Batteries in which
it's leading the development of the New Energy industry.
4. Understanding the Science of Creativity: BYD (Build Your Dreams) is a company which
truly understands the science and the reason behind creativity. BYD is a company which
sees the value in new ideas and understands creativity much better than the others in the
market. The company works in Automotive sector, railways and electronics sector.
Investing huge amounts in R&D is the biggest strength of the company as it gives out
innovative and creative products and services (Morgan and et. al., 2019). As discussed
earlier, the company is now working in three core technology- Electric motor, battery
and electric control which makes them unique and differentiates them from others in the
market. This is the best strategy that is being used by the company in the current market.
Company should continue on this path in the future because this is a strategy which will
be applicable and will help in growing and developing the market and the company.
The company should use the plan of innovation on a time-to-time basis as technology
gets outdated in very a short span of time. Also, innovative products are a source to attract
customers which will help improving profit margin and increasing productivity of the company
(Sahaf, 2019). BYD is one of the leading companies which owns 100 percent of the proprietary
intellectual property rights to a complete monorail system (Innovation at BYD, 2018). But just
one of best is not enough it has to be the best. So, the company is now required to work on the
strategies on which it functions.
International Marketing Strategies:
Every business desire to achieve its goals and objectives and get successful in the local as
well as in the International Market. But, for getting popular and to earn a high profit margin in
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the international market a company needs a plan. BYD is a company that works in the
international market but there are strategies used by the firm.
BYD works in the technological sector which includes Automotive, rails and electronics.
But before expanding its market globally the company might have asked some questions to itself
like:
 Is the company ready to work globally?
 Does it have proper number of resources and the contacts to expand?
 Does the product have some special qualities which would help gaining an identity in the
foreign market?
 What are the products to start with?
Before expanding, a company should ask itself the above questions which should be
answered by the company honestly because if these assurances are not given by the company,
there might be chances that the company might not be ready for the expansion. After the proper
and honest assurance is given, it is now time to focus on making International Marketing
Strategies for the purpose of expansion.
Global Marketing Strategies has a requirement of a certain investment in money, resources,
manpower to understand various markets, the country, cultures, local tradition, manners and
etiquettes (Thrassou, Vrontis and Bresciani, 2018). There are few strategies that the company
should follow:
1. Understanding the Cultural Differences: When promoting brands across different
countries, it is always better to do some global marketing research before targeting a
country and a market. The company should understand the culture of the country before
the expansion because culture of a country states whether the product is right for the
country or not. For example, if the company is expanding itself in Spain, the company
needs to change their products according to the language which the citizens of Spain
would understand.
2. Making Contacts: The company willing to expand should first analyse the culture and
then start making some contacts in the international markets which will help in
identification of the threats and barriers to expansion in the market. This will also help in
exploring the culture of the market like what are the tastes and preferences of the
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customers here. The contacts will definitely help in easing the process of expansion. This
will be a benefit for the company as it will reduce the efforts of the company.
3. Understanding the power of social media: Social media is considered to be very much
powerful as it can reach wide audience. Social Media can reach millions of people in no
time and can help reach the target audience of every kind. There are number of social
media platforms for example Facebook, twitter, Instagram, Snapchat, etc. Social media
influencers can help increase the level of promotion of different products and services of
the company. Paid marketing campaign can create good reach, even when it comes to
YouTube videos can also be shared effectively to reach a huge amount of audience.
BYD Co has targeted and considered social media platforms as one of the best forms of
marketing because less cost, time reduction and huge influence on the general public.
Challenges BYD Energy might face in Future:
BYD Energy is developed by a Chinese company BYD. It offers renewable source of
energy by using correct resources and creativity. Challenges that BYD might face in the future
are:
 Government Policies: There are some policies and rules & regulations that are imposed
by the law. These policies can also be called intervention of the Government. Policies can
be regarding the employees, the management, some innovation or may be more. These
policies are required to be fulfilled before, after and during the time a company functions.
BYD may face a challenge of trade restrictions while expanding in future.
 Innovation: Innovation can be a different challenge for BYD as it works very hard when
it comes to innovation. But still, innovation is something a company should never stop
doing as it helps in creating unique and developed products and increasing customers.
 Competitors: Competition is something a company always faces. Competition exists in
every market whether technological or something else. So, Competition is a challenge for
every company every time till the existence. This will increase the fear of substitution of
products as if the price of competitor's product decreases, customers will start buying
products of the competitors.
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CONCLUSION
After the above analysis it can be concluded that the company should use strategic
marketing as a tool to improve the productivity of the company and the margin of profits. The
company should use innovation as a strategy to improve its quality of products and the level of
target customers. The company should make proper use of the marketing strategies as it will help
the company expand and gain popularity in the international market. The company should do a
situational analysis time-to-time to know and understand the number of competitors in the
market so it can make better products and service than that of the competitors.
A company should critically analyse its competition and their activities as it will help the
company work a step ahead of what competitors are working on. It will make the company
realise the good and the bad things about the current functioning of the business. It also helps in
developing a plan for business which ensures better productivity and better output. This makes
the company expand itself in the local as well as in the international market. This makes the
company popular and grow worldwide.
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<https://www.byd.com/en/InnovationByd.html>
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