Operations Strategy at BYD of China case Study 2022

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Case Study Read the Operations Strategy at BYD of China
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Case Study Read the Operations Strategy at BYD of China
What were BYD’s operations objectives, and how did this change?
The key short-term operations objective of BYD is to produce cheap lithium batteries
compared to that of the competitors, and also to provide good conditions for long-distance
drivers. Improving the quality of the batteries will make the clients happy when batteries hold
a charge for long (Schroeder, Rungtusanatham & Goldstein, 2012). The long-term goal for
the company is to provide many stations for charging electric cars
*What key operations decisions helped BYD develop a competitive advantage over
other manufacturers?
The key operation decision that made BYD have a competitive advantage against its
rivals in the US and Japan is that they found a cheaper way of making the batteries. The
manager came up with a cost-cutting strategy where the company developed cheaper
machines and employed people for labor (Schroeder, Rungtusanatham & Goldstein, 2012).
Machines were expensive hence making production cost higher. This was a good move for a
business that had just started. The lowering of price was a good strategy for BYD, and in
2000, they were ranked as the largest maker of mobile phone batteries (Huckman&
MacCormack, 2009).
*Briefly describe the BYD supply chain. What innovative ideas did BYD integrate into
its supply chain model to
BYD raised money for the Hong Kong Stock Exchange by buying a falling industry,
and this helps them to increase their batteries business. Again, the company decided to move
to the vehicle industry after realizing that they had a cheaper way to produce quality batteries.
The idea of listing the firm in the stock market propelled BYD to compete internationally.
The company was in a position to merge or to buy 11 factories and to create a job for 130,000
employees (Huckman& MacCormack, 2009). The idea was integrated and helped the