Critical Analysis of BYD Energy: Company, Competitors, and Customers

This report provides a critical analysis of BYD Energy, including company analysis, competitive analysis, and customer analysis. It also examines growth strategies and challenges facing the company in the future.

Marketing

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
Part 1................................................................................................................................................1
Critical company analysis of BYD Energy.................................................................................1
Critical Competitive Analysis......................................................................................................3
Farasis Energy Inc...........................................................................................................................3
Critical Customer Analysis..........................................................................................................5
Part 2................................................................................................................................................7
Examination of TWO key topics.................................................................................................7
Consideration of the challenges facing BYD Energy in future.................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing is defined as a process of exploring, creating, and other forms of activities that an
organization undertakes to promote its products and services among its target base of consumers.
Marketing is a broad term that is inclusive of elements like advertising, selling, delivering
services products, and brands to consumers. Marketing plays an important role for any
organization irrespective of its size scope and industry, as it allows them to sell their services
products and make money to run business operations effectively. With help of conducting
efficient marketing, organizations have the opportunity to maximize their sales and have a strong
base in the consumer segment. With the help of conducting marketing activities an organization
can not only influence customers’ attention but can also fulfil their needs in demand and can
enhance the overall growth and profitability of the company within the industry. The present
report is conducted on Build Your Dream (BYD) Energy which is operating as a high-tech
organization and offers a stable and safe solution for renewable energy. This organization is
significantly dedicated to providing zero-emission energy solutions and their main products
include battery box low and high voltage for commercial as well as residential purposes, large-
scale battery projects in many countries. This organization is providing their products and
services while considering customers’ needs as well as the environment. The present report is
divided into two parts which include a discussion on critical analysis consumer analysis of the
company along with the challenges that the company can face in the future.
Part 1
Critical company analysis of BYD Energy
BYD Energy is electric vehicle maker to master battery, vehicle control along with
electric motors technologies (BYD Energy, 2022). It is a high-tech establishment that is devoted
for technological innovations and advancement for better life.
Organisational mission/vision: Mission of BYD Energy is to bring changes in the globe
through building entire and clear energy ecosystem which declines reliance of world on fossil
fuels. It aims to become pioneer for non-toxic energy with zero pollution as well as zero
emission.
Directional and growth strategies: In a company, directional strategy keeps people
emphasised in most strategic manner possible although continuing to achieve growth of revenues
1

and offerings to customers. In aspect to BYD Energy, directional values are passion, excellence,
innovation along with pragmatism. Likewise, growth strategy is plan of company to overcome
existing along with future complexities or challenges for realising goals for expansion. To
analyse growth strategies of the company, application of Ansoff Matrix Model is effective. The
model is opted by corporate managers for determining and plan strategies to achieve growth
(Dawes, 2018). Mentioned below are growth strategies of Ansoff Matrix Model available with
BYD Energy:
 Market Penetration: The strategy is an attempt of company for increasing market share
through existing offerings. In BYD Energy, if managers opt market penetration strategy
they can carry out through lowing prices of existing products or increasing efforts of
marketing for luring target audience aware from rivals.
 Product Development: It means creating new commodities with the hope of serving same
market. Managers of BYD Energy can use the strategy for selling new offerings to
current target audience along with growing business deprived of tapping new markets.
 Market Development: It is about launching organisational products to new market. With
market development strategy, professionals of BYD Energy can enter into a new city,
region, state or nation with existing offerings.
 Diversification: The strategy is most radical kind of growth that comprises offering
totally new product for entire new market. To adopt the diversification, managers of
BYD Energy can move towards new market with new offerings to increase sales.
From the above defined strategies of Ansoff Matrix Model, market development is effective
growth strategy for BYD Energy. With this, the company identifies along with develops new
market segment for existing offerings.
Competences and competitive advantages: For analysing competences along with
competitive benefits, managers of BYD Energy opt Resource Based View that argues that
sustained competitive benefit of company is related to its valuable, rare, inimitable as well as
nonsubstitutable resources. Below are elements of the resource-based view model in context to
BYD Energy:
Resources Valuable Rare Inimitable Non Substitutable
Supply chain
distribution
Yes No No No
2

Brand image Yes Yes No No
Technological
equipment
Yes Yes Yes No
Product range Yes Yes Yes Yes
Valuable: It permits premium pricing along with enable exploiting opportunities or
mitigate threats in market. In aspect to BYD Energy, valuable resources are brand image,
technological equipment, supply chain distribution along with product range.
Rare: It is category of resource that is unique among set of existing and potential rivals.
From the above VRIO analysis, it is determined that rare resources of BYD Energy are brand
image, technological equipment addition to product range.
Inimitable: These are complex to imitate as well as build ready substitute for the
company (Triviño-Cabrera, Aguado and de la Torre, 2019). In aspect BYD Energy, inimitable
resources are technological equipment and product range.
Non Substitutable: This category of resource exists at the time when combination of
resources of others cannot duplicate strategy provided by resource bundle of specific company.
Product range of BYD Energy is non substitutable resource as rivals fails to find alternative ways
for gaining advantages that are offered by product range of the company.
Critical Competitive Analysis
Competitive analysis is an approach of company to research major rivals for gaining
understanding along with insights about products, marketing and sales tactics (Ji and Huang,
2018). In relevance to BYD Energy, customer analysis assists in learning about ins together with
outs related to the ways competitors work addition to the identification of potential opportunities
for performing outstanding. Competitor analysis in relevance to BYD Energy is underneath:
Basis of analysis Farasis Energy Inc Tesla
Competitor profiling Farasis Energy Inc develops
along with supplies lithium-
ion batteries for electric grid,
industrial vehicle together
with transportation. It
company is successful as it
The company is biggest seller
of plug-in EVs and is clean
energy establishment led by
Elon Musk (Tesla, 2022). The
company is successful because
of inclusion of new regulations
3

practices with development
along with commercialising
innovative energy storage
solutions for meeting global
demand to make
improvisation in battery
performance, safety and cost.
on safety along with vehicle
emission, shifting customer
experience and advancement of
technologies.
Strategies E-mobility strategy is
adopted by Farasis Energy
Inc to focus towards
opportunities for
encouraging more usage of
electronic vehicles or other
sustainable travel options.
Furthermore, penetration
pricing strategy is opted by
Farasis Energy Inc for
attracting target audience to
offerings trough lower prices
initially.
One of strategy of Tesla is
Bottom Line strategy in which
sustainability of the company is
tied with mission and it is
performing good things in solar
energy space. Moreover,
pricing strategy used by
managers of Tesco is premium
pricing strategy that comprises
price points on high value or
uniqueness attributed to
products.
Competences and
competitive positioning
Key competences of Farasis
Energy Inc entails
indigenous electric car as
well as other battery energy
storage solutions (Farasis
Energy Inc, 2022). The
company has managed
success through emphasising
on electric vehicles. The
organisational competence
are its offerings. It conducts
Core competences of Tesla are
power train, innovative
manufacturing techniques and
vehicle engineering while
organisational distinctive
competence is safety design
battery pack technology
addition to distribution. With
growth rate of more than 157
percent in 2021, Tesla is the
fastest growing brand
4

practices within domestic
addition to overseas market
with top positions.
worldwide with mono-segment
positioning. Tesla came in 16th
in 2021, nonetheless fell seven
spots to 23rd in the 2022
rankings.
Critical Customer Analysis
Key target consumer segments
It has been evaluated that comparatively to normal vehicles the overall cost of various
electric based vehicles is comparatively more. This means not every individual to desire to have
an electric vehicle. By seeing all these perspectives, it has been identified by BYD energy that
they are targeting highest spenders of a community. In their research process it has been
underlined by organization that they have strength in producing and selling various forms of
public transportation electric buses system (Sun, Zhang and Su, 2022). This clearly indicates the
fact that private own bus service organization or government are the main and key customers of
the company. In addition to this customer those who have higher social values as well as
intention to have a positive contribution towards environment with the help of emphasising upon
green energy are also one of the primary customer base of company. Along with this it has been
identified as per the company research analysis that various forms of government organization
those who undertake use of public transport are also basic target customers of company.
Furthermore, it has been underlined that, there are various forms of organisations those
who undertake use of electric vehicles in order to pick and drop their employees. In today’s time
period government of many countries are emphasising organization to have a CSR reducing the
negative impact on environment. In this many companies are taking use of electric vehicles for
transportation purpose (Schiavone and Simoni, 2019). This is also emerging as one of the
primary consumers of organization. It states that company can significantly offer their services to
these consumer base. Currently company is taking use of multiple forms of marketing method in
order to attract their main consumers.
Customer behaviour
Consumer behaviour are mainly defined as an intention of various consumers at a time to
buy certain form of services and products. It has been underlined that the consumer service of
5

electric car manufacturing organization is changing in a continuous manner, in which more and
more number of individuals are showing their intention to buy environmental friendly products.
There is some segment of consumers those who are not worried about high pricing rate of
electric vehicle but they are having positive intend to have a responsible citizen.
Trend analysis
As per the trend analysis it has been identified that nowadays large number of consumers
are showing their interest and willingness to buy electric vehicles. Furthermore, it has been
underlined that economic perspective of industry are being radically enhancing in countries like
United Kingdom, China and UK. There number of electric vehicles has been significantly
increased over the past few years. Along with this there are some developing countries like India
those who are focusing on electric vehicles. It has been identified that only in the provinces of
United Kingdom the percent of electric vehicle has been doubled in a significant manner.
Critical Strategic Collaboration
The strategic collaboration mainly deals with three different form of elements that can
help in evaluation of the issue in the development of company marketing. It has been evaluated
that the depth as well as insight of the company deal with development of critical elements (Liu
and Liu, 2020). This duly evaluate the value of the brand in the leading market the elements that
can significantly maximise the growth of strategic option deal in market and can assure success
is inclusive of salient features which is inclusive of company strengths.
Operations:
This US company of energy production has expanded in the international market that can
enhance the growth of the company with the change in the derivative. The vast range of
operation of this company influences the growth of the company with the change in the market
value. The modern logistics deals with the development of the variables that can enhance the
SCM of the company to cross the borders of the US and to sustain in the international market.
This is the crucial factor that can be stressed on the growth of the strategic alliance of the
company. The partner company in the market facilitate to enter in other nations with the
international business drive of the company.
Finance:
Finance is one of the most important element that can boost the effectiveness of
marketing strategy of organization for the change in approach through which they can maximise
6

company growth. The financial factors mainly deal with influence of the company business
strategy and can assure further expansion of organization (Turker and Bacha, 2018). In this
making modification in objectives company can maximise brand value growth and can enhance
their revenue turnover. However, the main challenge in the development of strategy deals with
financial development of the company. The present organization has unable to compete in the
market with the brands of the United Kingdom that can sustain the financial growth of company.
The alteration of the financial strategy deals with the move of the company that can act as the
treatment of the company to shudder the international business drive in the future aspect.
Marketing:
BYD has to enhance the social marketing development that can enhance the growth of this
company with the change in the objectives. The advancement of the essential association can
expand the development of the organization with the adjustment of the worldwide part of the
organization that fosters an individual relationship with the inspiration in an association. The
impact of web-based entertainment can build the matter of the organization. Promoting in the
global market is a significant issue of the organization. This can be redressed with additional
adjustment of global arrangements with the adjustment of the deals system. The resources are to
be developed by the request of the client to build the income of the organization.
Part 2
Examination of TWO key topics
They are different types of innovation strategy that an organisation can use which help them to
enhance the overall growth and assure success. It has been underlined that BYD is already
operating as an innovative organization. As per BYD they are aiming towards to make the world
a better place, in which they are offering world with zero pollution batteries and zero emission
products and services that will have nontoxic impact on environment. With the help of having
sustainable products this company is providing consumers a way to significantly contribute in
the protection of environment company (Li, Jiao and Tang, 2019). With the assistance of their
zero emission strategy is not only enhancing productivity but also attracting customers. It has
been identified that in today’s time period consumer behaviour are more inclined towards
sustainable products. This helps be an opportunity for company to attract large base of consumer
7

segment. With the help of their innovative strategy BYD has impacted lot of consumers in a
positive manner.
It has been identified that company is having effective form of international marketing
strategy which attracts customers worldwide there are various forms of countries in which
company is providing their services. This organization is offering their production services
worldwide and named as the world’s largest electric vehicle manufacturer. This company is not
only providing products and services to consumers but it’s also providing their merchandise to
industrial sectors with the help of strategy that they apply to enhance their international business
is standardization strategy. By taking assistance of this strategy organization is producing
products which is having tendency to benefit them in both international and domestic market
(Ballance and Sinclair, 2021). With the assistance of this procedure, the organization produces
items, which will help both the homegrown clients as well as a worldwide client. They don't
need to build their creation process as they offer types of assistance, which will be gainful for
both the gatherings. In the past year, BYD sold almost 113,000 module electric autos from one
side of the planet to the other and presently has in excess of 40,000 electric transports which are
in help universally. With these expansions from one side of the planet to the other, the
organization has set an effect in the worldwide market. Company is not required to enhance their
production process as they offer services which is beneficial for both parties.
It has been underlined that considering currently innovation strategy that company is
using it has been identified that there is another strategy that will assist organization to make
improvement in their innovation in effective manner and make improvement in products as well
in effective way. In the incremental innovation strategy to organization make small changes as
well as improvement in the method, products and services. The improvement implemented with
the help of taking advantage of innovation strategy that emphasise upon making improvement in
existing products of company in order to enhance their efficiency (Habib, K., Hansdóttir and
Habib, 2020). In addition to this many organizations are taking advantage of the strategy in order
to have a stable position in market segment. It is one of the most effective form of marketing
strategy through which company can thrive in a consumer tech industry. BYD offer consumers
with sustainable and effective rechargeable batteries, by taking use of different brands and
organization company is making improvement in their product quality. In this with the help of
8

taking advantage of this strategy company can make improvement in their products effective
manner.
Currently company international marketing strategy is very effective and useful. Though,
there is another international marketing strategy through which company can make improvement
in their international marketing policies. The standardization strategy that company use might
beneficial the local as well as international consumers (Ahmadi, 2019). However, in context with
international market it is essential for organization to identify this fact that they may face higher
competition. This is one strategy that company can undertake is to implement a transactional
strategy. In this strategy company can make amendments in their products as per the consumer
base while keeping mind in the economy. This strategy will also help company to treat local
customers in the same manner. It has been identified that the strategy is mainly a mixture of
standardization strategy as well as multi domestic strategy. By taking advantage of this company
can significantly meet consumer demands or international basis and can make improvement in
that local business market.
However, it has been identified that transitional strategy is a bit difficult to maintain. In
this it is essential for company to first succeed in managing the economies sale internationally
with the help of taking advantage of this strategy company is also required to look after the local
condition of market base. By taking advantage of this strategy company can assure success in
international business drive. It is essential for an organization to maintain its brand
internationally in which they need a strategic alliance with various companies those who are
situated in company or planning to enter (Hasan and Islam, 2022). By taking advantage of proper
alliance organization can properly thrive in international market segment without facing any
challenges or interruption. Thus according to the above mentioned analysis it has been identified
that BYD by taking advantage of these strategies can not only enhance consumer satisfaction but
can also execute their plans in an effective manner. It also provides organization and effective
positioning transactional strategy adopted in a proper manner. BYD is having tendency to
enhance effectiveness of organization in international market segment. In addition to this it has
been identified that if incremental innovation is executed by company in an effective manner
then it is having tendency to maximise product quality along with the various services that
company is offering to its consumers. It is essential for organization to emphasise upon their
innovation as well as international marketing strategy in order to assure long term growth in
9

success in industry. This will help organization to maximise sustainability and improve their
products and services efficiency and provide more consumer friendly features. With the help of
taking advantage of above mentioned strategy company can execute their planning process in
effective manner and can also attract attention of large base of consumers. It has been identified
that nowadays behaviour of consumers is more inclined towards products those who are
sustainable to nature, in many countries governments are also providing subsidies discounts and
other facilities to customers or companies those who are taking use of production services which
is environment friendly. This creates a significant platform to respective organization to attract
attention of larger base of consumer segment on international platform. In this with the help of
taking advantage of appropriate innovation strategies as well as international marketing
strategies BYD have capability to assure higher growth, as it has been seen that organization has
been newly awarded as the world’s largest manufacturers of electric automobiles from past 3
years (Zhai and Li, 2019). Thus it states that the world is having many expectations from this
respective organization. Therefore, it is essential for company to undertake use of effective
international marketing strategies as well as innovative strategies in order to assure long term
growth and profitability along with enhancing satisfaction of customers.
Consideration of the challenges facing BYD Energy in future
BYD is operating its roles and responsibilities as a high tech company devoted to technical
innovation for better life. Organization is engaging in the development of energy resources in
context of policies of renewable sources. Organization has significantly elevated their products
with an element of innovation and to successfully step in international platform. With the help of
taking advantage of resources and effective marketing strategy organization can assure
successful international market growth. However, there are certain challenges that company
management has faced that can create number of problems in future growth of organization (Hill,
2020). Mentioned below some future challenge of this company with products and customers in
international market is being discussed below.
 Organization has successfully developed their existing products with zero emission
strategy which further allow them to assure growth in industry with the help of change in
their innovation model. This organization is making implementation of incremental
innovation needs with the help of research and development to deal with dynamic
drainage of the company. However, this element can further create market loss in the
10

further development of products. The main challenge of company is to change model of
innovation in context of development of new products.
 The organization can face challenge in terms of variation in the exchange rate that can
further impact organization strategy (Li, 2021). The political instability also can be the
factors that can affect company growth that can make organization to change in their
policies.
 The diversification, as well as policies associated to administration deals with the change
in international market, can further impact upon expansion of company in international
market.
 Implementation of new product innovation strategy lead organization to provide training
to employees.
 This is one of the leading company which has created a brand image in market in context
with international marketing strategy. It is essential for organization to target all class of
customers. In this the company has faced tariff barriers in order to enter countries like the
United Kingdom. Companies is can face challenge associated to negotiation with the
laws according to nation in order to elaborate their international marketing objectives.
It is essential for company to establish a marketing planning as well as strategic planning in
order to make reduction in these identifies challenges. With the help of this, organization can
conduct their international business operations in effective manner (Sperling, 2018). It has been
identified the renewal battery company has future aspiration in the development of market in
international platform, for which it is essential to overcome the above challenges in an effective
manner.
CONCLUSION
Thus, according to the above assignment of BYD energy it has been identified that this
organization is operating as one of the most effective as well as reliable alternative energy
solutions provider in current period of time. This organization by offering qualitative products
and highest satisfactory services customers emerged as a leading organization. The organization
is having both tangible as well as intangible resources and undertake advantage of them to assure
higher competitive advantage. Furthermore, it can be concluded that company is having effective
success rate because of its strategies, innovative practices and policies. It is essential for
organization to make improvements in their workforce as well as other aspects in order to make
11

their employees competitive to perform their activities on international platform. In addition to
this it has been identified from this report that organization can face challenge associated to high
cost and negative consumer perceptions. This can be effectively overcome with the help of
conducting effective and attractive marketing strategies in order to influence mindset of
customers.
12

REFERENCES
Books and Journals:
Ahmadi, P., 2019. Environmental impacts and behavioral drivers of deep decarbonization for
transportation through electric vehicles. Journal of cleaner production, 225, pp.1209-
1219.
Ballance, R. and Sinclair, S., 2021. Collapse and survival: industry strategies in a changing
world. Routledge.
Dawes, J., 2018. The Ansoff matrix: A legendary tool, but with two logical problems. But with
Two Logical Problems (February 27, 2018).
Habib, K., Hansdóttir, S. T. and Habib, H., 2020. Critical metals for electromobility: Global
demand scenarios for passenger vehicles, 2015–2050. Resources, Conservation and
Recycling, 154, p.104603.
Hasan, F. and Islam, M.R., 2022. New Energy Vehicles from the Perspective of Market and
Environment.
Hill, A., 2020. Manufacturing Operations Strategy: Texts and Cases. Bloomsbury Publishing.
Ji, Z. and Huang, X., 2018. Plug-in electric vehicle charging infrastructure deployment of China
towards 2020: Policies, methodologies, and challenges. Renewable and Sustainable
Energy Reviews, 90, pp.710-727.
Li, J., Jiao, J. and Tang, Y., 2019. An evolutionary analysis on the effect of government policies
on electric vehicle diffusion in complex network. Energy policy, 129, pp.1-12.
Li, Y., 2021, December. A Case Study on Profitability and Prospects of New Energy Vehicle
Industry. In 2021 3rd International Conference on E-Business and E-commerce
Engineering (pp. 237-242).
Liu, S. and Liu, X., 2020. Culture and Green Advertising Preference: a comparative and critical
discursive analysis. Frontiers in Psychology, 11, p.1944.
Schiavone, F. and Simoni, M., 2019. Strategic marketing approaches for the diffusion of
innovation in highly regulated industrial markets: the value of market access. Journal of
Business & Industrial Marketing.
Sperling, D., 2018. Three revolutions: Steering automated, shared, and electric vehicles to a
better future. Island Press.
Sun, Y. F., Zhang, Y. J. and Su, B., 2022. Impact of government subsidy on the optimal R&D
and advertising investment in the cooperative supply chain of new energy
vehicles. Energy Policy, 164, p.112885.
Triviño-Cabrera, A., Aguado, J.A. and de la Torre, S., 2019. Joint routing and scheduling for
electric vehicles in smart grids with V2G. Energy, 175, pp.113-122.
Turker, H. and Bacha, S., 2018. Optimal minimization of plug-in electric vehicle charging cost
with vehicle-to-home and vehicle-to-grid concepts. IEEE Transactions on Vehicular
Technology, 67(11), pp.10281-10292.
Zhai, L. and Li, Y., 2019, September. BYD Financial Risk Early Warning Research. In 2019
Asia-Pacific Forum on Economic and Social Development (Vol. 2, pp. 184-189). The
Academy of Engineering and Education.
13

Online:
BYD Energy. 2022. [Online]. Available through: https://en.byd.com/energy/
Farasis Energy Inc. 2022. [Online]. Available through: https://www.farasis.com
Tesla. 2022. [Online]. Available through: < https://www.tesla.com/>
14