Critical Analysis of BYD Energy: Company, Competition, and Customer

This report provides a critical analysis of BYD Energy, including company analysis, competitive analysis, and customer analysis. It also covers growth strategies and trends in the energy industry.

Strategic marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Part 1................................................................................................................................................3
Critical company analysis of BYD Energy.................................................................................3
Critical competitive analysis........................................................................................................6
Critical customer analysis............................................................................................................7
Part 2................................................................................................................................................9
Explanation of two of the module’s key topic and the challenges faced by the company to
adopt these challenges and their mitigation actions....................................................................9
CONCLUSION..............................................................................................................................12
REFERNCES:................................................................................................................................13
Books and Journals:...................................................................................................................13

INTRODUCTION
It is essential for every organisation to focus on their strategic management activities
effectively which will help them to grow (Fuertes and et. al., 2020). Strategic management is the
process of setting goals, objectives and tactic plans for organisation so that they will achieve
competitive advantage within the industry. Basically strategic management help to manage
resources in such a manner which will help the organisation to achieve their main aim
effectively. There are four types of strategy, corporate level strategy, business level strategy,
functional level strategy and operational level strategy. Build Your Dreams (BYD) Energy is a
high tech company which provide technological solutions to their clients. They are mainly
focused to provide innovative technological solutions to their clients which will help them to
lead the industry by offering them unique products. The following report covers situational
analysis focusing on in-depth examination of company, competition, customer, collaboration and
context. It also covers challenges faced by BYD Energy in future.
MAIN BODY
Part 1
Critical company analysis of BYD Energy
Beyond Your Dreams (BYD) is a Chinese conglomerate manufacturing company which is
founded in the year 1995 by Wang Chuanfu. It is headquartered in Shenzhen, Guangdong, China.
The company provide technological innovative solutions for their customers. They aim to build,
store and deliver effective and sustainable energy to their customers which will not harm their
environment and human life. The company is focusing to provide zero- emission energy
solutions to their customers.
Mission of BYD- The mission of this company is to provide those technological solutions to
their customers which are non- toxic energy with zero emission and zero pollution. Their core
values are excellence, pragmatism, passion and innovation.
Resource based view- It is the managerial framework which help the company to analyse the
ways to achieve competitive advantage within their industry by analysing the importance and
some special characteristics of their resources (Makadok, Burton and Barney, 2018).
Resources Valuable Rare Inimitable Non-

substitutional
resources
Brand image yes yes yes Yes
Financial
resources
yes yes no No
Supply chain
management
yes no no No
Human Resource yes yes yes No
Valuable- It means the value of the resource is important for the company or not. There are few
of the resources which are valuable for the company BYD like-
 Brand image- It is that intangible asset which help the company to attract more
customers (Hitt, Ireland and Hoskisson, 2019). It will help to increase the reputation of a
company in their market. In context of BYD, their brand image is valuable for them to
gain high customer satisfaction which further helps them to gain competitive advantage.
 Financial resources- It is those resources which help the company to maintain their
financial activities appropriately. It is valuable for the company because in case it is not
managed appropriately than it can even cause a great financial loss to the company which
further impacts negative upon their operational activities.
 Supply chain management- This is the process that how a company distribute and
manage its products to fulfil the aim of supply chain of the company. It is valuable for
them to gain completive advantage. In case their customers are unable to reach their
products offered by company time than their brand reputation will recline and their
customers will start switching to other company.
 Human resource- It is the manpower of the company which help the company conduct
their operational activities appropriately (Keding, 2021). It is valuable for the company
for gaining high competitive advantage because their efforts will help the company to
grow high.

Rare- It is important for the company to make their resources rare from their competitors to gain
high competitive advantage within their industry. Few of their resources will help them to gain
high competitive advantage through their rare characteristics of the resources.
 Brand image- It is rare for the chosen company because it is not copied by any other
organisation within their industry.
 Financial resources- It is rare for the company because the company's way to manage
their financial activities is different from their competitors and they can maintain their
high revenue by mitigating unproductive activities from their organisation.
 Human resource- Employees of the company are also rare for the BYD because their
skills and talents will help them to gain more customers within their industry.
Inimitable- It means those resources of a company which are not copied by their competitors
and few of the resources for BYD Company is mentioned below-
 Brand image- It is that intangible asset of a company which are not copied by any other
organisation even it is immeasurable, it is only felt. In context of BYD, their brand image
is not copied by any of their competitor in their industry.
 Human resource- The skills and talents of the employees of BYD is also not copied by
any of their competitor.
Non- substitution resource- It is that resources which are not used in place of each other and
some of the non- substitution resources of the BYD Company are mentioned below-
 Brand image- It is not substitute by any other competitors of BYD because it is
immeasurable. They are also required to use trademark and patient for their logo and
product to prevent them from getting substituted by any other company.
It is also essential for the company to focus on their growth strategies effectively so that they will
analyse the obstacles which comes on the way of their growth and make effective obstacle
mitigation strategies (Dzwigol, 2020). Ansoff matrix can be used to analyse growth strategy of
BYD-
Market penetration- This is the strategy which consist of offering existing products and prices
within the existing market. In context of BYD, they have gained a effective growth within their
existing market which is China. They are suggested to maintain high brand value in China
through offering same services and products within lower prices.

Product development- It is one of the most commonly used growth strategies by the companies
for growth management (Teece, 2019). Here, companies focus on developing the features and
characteristics of their products and services within their existing market. In context of BYD,
they follow this strategy by offering renewable and sustainable energy to their customers who
will not harm their environment and human life.
Market development- This strategy consist of offering existing product within new market. In
context of BYD, they target to expand their market at worldwide level to develop their
productivity and profitability. For this they must create a demand for their existing product
within the new market where they aim to expand their business.
Diversification- It is the growth strategy which covers to offer new product within new market.
In context of BYD, they are not going to adopt this strategy due to its high risk factor. This
strategy is one of the most risky strategy for the companies to perform their operational
activities.
Critical competitive analysis
It is essential for BYD to focus on their high growth through analysing their competitor's strategy
and motive to gain achievement (Kakhkhorov, 2020). Analysing competitor's strategy effectively
and than making owns competitive strategy is effective to defend the harms of competition
within the industry. In context of BYD, they are having various competitors and few of them are
mentioned below-
Tesla- It is one of the world famous electric vehicle and energy Producer Company of the world
which is based in Austin, Texas. It is founded in 2003 and it has 655 stores all across the world.
The current CEO of the company is Elon Musk. They mainly grow with their sustainable
strategies in the market. They manufacture electric and automation cars for their customers
which will not harm the environment. Their brand value and brand recognition help them to earn
a good amount of profit of US$ 6.52 billion (2021). Tesla's core competencies are innovative
manufacturing techniques, safe design and distribution. They are popular for their innovations
which reflect within their manufacturing processes. Their unique models of cars and examples of
their high tech technological asset which help them to gain completive advantage within the
industry. The positioning of Tesla is high in the industry and it's positioning statement within
their industry is “ the only stylish car that can go from 0-100 km/hour speed within just 3
seconds without a single drop of petrol. The customers of Tesla are having high brand loyalty for

this product due to the quality they offer to customers. In context of BYD company, they are
required to analyse the competitive advantage strategies used by Tesla and the factors which can
impact their high positioning in the market. They can also use customized manner for their
production activities where they can manufacture their electric cars or any other electric and
technological device according to the requirement of their targeted customers to make them
satisfied.
Sinohydro Corporate Limited- It is one of the most popular company in China for producing
energy through hydro power. The company is founded in 1950 and it is headquartered in Bejing,
China. The company is stood at 14th position in overall world for their performance and it stood
at 6th position within the China. They expand their business across the world within 55 countries
and currently they are planning to expand their business in Israel market. The company is
engaged in various business by investing in projects of agriculture, electric power investment,
house property, research and development and many others. Here, the business of electric power
investment is discussed only. Sinohydro is one of the biggest competitor of BYD Energy
company. Their core competency to gain high marketing share is to maintain their renewable and
sustainable resources effectively and offer it to other industries who required it for their main
operations. In context of BYD, they are also required to expand their market and think to
provide renewable energy to their customers through hydro power. It is essential for them to
invest high in research and development department and analyse the marketing demand of hydro
power for their customers.
Critical customer analysis
It is essential for companies to analyse their targeting market effectively and make strategies to
capture more customers within the industry for effective growth (Steiss, 2019). Segmentation,
targeting and positioning will help to analyse the effective strategies which can be followed by
BYD company to gain high market growth.
Segmentation- The process of dividing market into various small compounds is called
segmentation. Here, a huge market is divided into small segments of customers so that company
will analyse which segment is required to target for the benefit of company. In context of
segmentation, the customers having similar characteristics are placed within a same group. For
BYD there are few segmentation groups which they can prefer to expand their business and these
are mentioned below-

 Geographical segmentation- Here, market is divided on the basis of location and area.
In context of BYD company, they can target various locations at worldwide by analysing
their political factors and other essential legal; requirement to expand their business
effectively.
 Behavioural segmentation- Here, a company is required to segment their customers on
the basis of their behaviour. Loyal customers are grouped into one segment and another
segment will cover moderate loyalty customers. In context of BYD, they mainly focus on
those segments which are loyal toward their brand and those who express their demand
and needs openly in market.
Targeting- It is the process of selecting one or two segmented group from various alternatives of
segmented groups (Ketchen Jr and Craighead, 2020). In context of BYD, they mainly target local
people and companies who need electro power for their daily operations. They are focusing to
target those customers who are loyal and can use their services and products for longer period of
time. They are target those customers who show their interest and loyalty for sustainable and
renewable energy resources.
Positioning- This is the process of creating high position within the market through various
activities (Stoyanova and et. al., 2019). In context of BYD, they are having high position within
the market due to which they are able to expand their business internationally. It is suggested to
the company that they can advertise their products and services well in the market. Offering
lower prices for their sustainable and renewable energy as compared to their competitors will
help them to enhance their market reputation and further help them to gain more customers as
compared to their competitors.
Customer behaviour and trend analysis-
In context of energy industry, there are various trends which can impact customers and this
industry and the companies who offer their offerings to their customers. Few of the trends in this
industry are mentioned below-
Renewable energy- Shifting to renewable energy will help the companies to prevent their
environment from harmful effects of carbon emissions (Anatolievna and Anatolievna, 2018).
Extracting energy from natural resources like sun, water, wind and few others is considered as
renewable resources. In context of BYD company, they are already gaining success in the
industry through their renewable energy procedure.

Internet of Energy- Internet is used for various purposes by a company for developing their
productivity and profitability (Kools and George, 2020). It is used to design and blueprint the
products and services effectively. Few of the examples are NYDRO which is a IoE platform
which connects energy developers, customers and investors all together. This will help the
company to analyse special; needs and requirements of their customers for their product so that
company will prepare that amount of energy in a appropriate manner.
Vehicles to Grid- V2G is a system in which EVs sell energy in response to demand either by
returning electricity to the grid or by cutting their charge rate. If EV batteries later return energy
to the grid through charging stations, it is possible to use it as an energy storage asset.
Part 2
Explanation of two of the module’s key topic and the challenges faced by the company to adopt
these challenges and their mitigation actions
Innovation strategies- It is essential for every business to focus on their innovative way of
growth for their business (Sullivan, Thomas and Rosano, 2018). One of the best ways to grab the
opportunity of innovation strategies is to analyse the current trends in the industry and adopt the
trends as soon as possible before it is adopted by their competitors. Investing high in research
and development department is essential for the business because it will target to analyse current
marketing situation and help the company to launch those products which can mitigate the issues
of their customers effectively. This is how they can promote their brand and gain more customers
as possible to win competitive advantage. In context of BYD, they have analysed their current
trend about renewable energy and start focusing to gain profit and more customers through
offering them renewable and sustainable energy which will not harm the environment and social
society.
The innovation matrix will help the business to analyse their innovative strategies more clearly-
1. Radically disruptive- Here, business gains high performance through their new
technology and creates a new business model (Darling and et. al., 2019). There is no clear
competitor of such businesses.
2. Radically sustaining- In involves improvement on the product or process in an existing
market that provides new value to the customer. Here, companies basically improve their

products in a innovative manner by changing their process of manufacturing and offer
their new and innovative product to their existing market.
3. Incrementally disruptive- It means incremental improvement in technology will leads to
dramatic disruption (Veselovsky and et. al., 2019).
4. Incrementally sustaining- It includes small and minor changes within an existing
product or technology of the company will leads to greater change within the market.
In context of BYD, they gain high marketing share through following radically disruptive
innovation within the market. They adopt new technology and to create new business model.
They totally change them self as a renewable and sustainable business for their customers.
One of the biggest challenges faced by company through their innovative strategies is that they
have to invest a high investment for their innovative strategies. Secondly, it is also challenging
for them to promote their new innovation quickly in the market before their competitors copy
their products and services (Knight, Daymond and Paroutis, 2020). In context of these
challenges, BYD Energy company must prepare a proper budget and follow the budget
appropriately to mitigate the over costly issues. Secondly, they must analyse their current
environment for regular time phase and terminate those activities and their investment which did
not provide effective profit for them. This will help to save the cost and use it somewhere else
for business profit. Secondly, for promoting their products quicker in the market, they must use
social media platforms like Instagram, Facebook and many others which is having global reach.
More likes and shares will aware customer about the product effectively. They can focus on
developing high brand value through sustainability and hence, they must indicate their main
characteristics of their Energy which is different from its competitors.
Relationship strategies- In context of the growth of any company, it is essential for them to
maintain a good relationship with their customers which further help them to gain high customer
loyalty (Svatosova, 2020). Every customer expects that they will get string relationship with
those companies from which they are using their products and services so that in case of any
uncertainties they will contact the company for solution. BYD is expected to maintain high
customer relationship with their customers through effective relationship strategies such as
offering quality products and services to customers and maintain long term communication with
customers so that they will help to know the feedback for the products and services. Secondly,
replying customers faster through mails and many other sources will also help the company to

maintain high relationship with their customers. Asking for regular feedbacks will help the
company to analyse the performance of their products to gain high customer satisfaction. In case
customer provide negative feedback than the employees of the company must thank their
customers for providing feedback on time and try to modify the product which cause customer
dissatisfaction. Appropriate customer relationship will help the company to gain high customer
retention (Rafiq and et. al., 2020). Effective communication plays an important role in
maintaining customer relationship. Today market is becoming customer centric which means
customer will decide which company can lead the industry by showing their interest and loyalty
toward the company. Today, customers do not need only product but they need effective services
from the company for longer period of time. It is suggested to BYD that they must record the
personal details of their customers and focus to communicate them on regular basis to ask
whether they need any other services from the company or not, by providing them information
about new launch or modification of their existing products and services. There are few of the
CRM models and theories which are discussed below-
IDIC model- This model is developed by Peppers and Rogers Group for providing a specific
and general blueprint for impacting CRM in various situations. There are four stages in this
model which are discussed below-
1. Identify- The first step is to identify the customer and their behaviour toward the
company and its products (Mavi and et. al., 2019). Here, BYD Company can collect
name, address and other personal i9nformation of their targeted customers. They must
also recognise the purchase history of the customer from their company to analyse
whether customer is purchasing at once or he/ she is a loyal customer. The main aim of
this stage is to collect as much as information about the customer as possible to
understand their actual needs and requirements from the company.
2. Differentiate- This stage consists of differentiating their customers to identify which are
impacting more upon their business through regular purchase of their products and
services. This will help the company to prioritize the customer relationship efforts on the
most valuable clients and Tailor Company’s interaction to best fit each segment for
higher business profit.
3. Interact-This is the third stage of this model where companies convert their plans and
tactics into actions for maintaining high customer relationship. Here, company start

interacting with customers and offering them appropriate information about their
products and services. The way company will interact with their customers will decide
whether they are able to provide effective customer relationship conversation to their
customers or not.
4. Customize- This is the last stage of this model which will help the company to analyse
whether their interaction with customers are able to fulfil their needs and expectations or
not (Doktoralina and Apollo, 2019).
The main challenge of adopting relationship strategies by company is to handle and maintain the
different kinds of customer behaviour. It is not possible for the company to only gain those
customers who are polite and interactive with them. Some of the customers are having
aggressive behaviour and they are introverts who do not like to interact with company. Hence, it
is essential for BYD Company to analyse the behaviour of their customers and convey them
messages accordingly. And secondly, it is essential for the company to convey precise and
important messages only which will not irritate their customers. Second challenge which can be
faced by company to maintain their customer relationship is that most of the customers perceive
that they are discriminated by company in front of those customers who buy their products and
services more than once. Hence, this issue can be mitigated by providing training to employees
and make them learn how smartly they can target their loyal customer effectively without
discriminating their new customers.
CONCLUSION
From the above information it is concluded that strategic management is one of the most
essential activity of the company to analyse their plans and actions to gain high competitive
advantage within their industry. Analysing about company and the importance of their resources
will help the company to invest more on most valuable assets and start disinvesting for those
assets which are not important for company’s growth. Identifying targeted customers needs and
wants is prior to the company. There are various kinds of strategies like innovation strategies,
relationship strategies and many others which help the company to grow high in future.

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