Strategic Marketing: Critical Analysis and Options for BYD Energy

This report provides critical analysis of BYD Energy's company, competitive and customer analysis, and strategic marketing options available. It also discusses challenges that the company can face in future.

Strategic Marketing
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Table of Contents
Introduction.....................................................................................................................................3
Task 1..............................................................................................................................................3
Critical company analysis.......................................................................................................3
Critical competitive analysis..................................................................................................6
Critical customer analysis.....................................................................................................10
Task 2............................................................................................................................................12
Analysing the strategic marketing options available for BYD Energy firm as well as discuss
the challenges that the company can face in future:.............................................................12
Conclusion.....................................................................................................................................17
References.....................................................................................................................................18
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Introduction
Strategic marketing is considered as the principle of marketing that is used to grab the
firms’ goals by creating a sustainable competitive advantage. This basically consists of different
decisions in the marketing and their current plan to minimize the cost and maximize the profit. In
this report, it will discuss about the marketing strategies as well as critical analysis of BYD
energy. It is a company of innovation of recent technology in order to improve the life of general
public or audience. The main aim or purpose of this company is to build an effective renewable
energy by enabling the use of stable and safe use of storage solutions. The major product of this
company is the battery projects which manufactures both types of low as well as high voltage of
batteries (D'Andrea and Luce., 2021). This report will cover the competitive as well as customer
analysis of the considered company for this report that is BYD energy. At last of this report, it
will discuss about two vital modules that is innovation strategies and international marketing
strategies. The challenges that are facing by the BYD energy in the future are also fully
explained in the below report.
Task 1
Critical company analysis
BYD energy Mission and vision
Company’s Mission
BYD energy missions to completely change the world by developing an ecosystem of
clean energy that overall reduces the world's dependency on fossil fuels.
Company’s Vision
The vision of this company is to make the whole world clean by enabling the significant
people to use renewable energy resources.
Directional and growth strategies of BYD energy
The growth strategy of any company can be developed by using the Ansoff Matrix. This
framework enables a person to determine the growth of business by using different marketing
strategies. It is basically considered as a tool that enables the company to analyse and make an
effective strategy for the growth of its sales as well as profits. This matrix reflects four strategies
that are by the various organizations to examine the overall risk that are associated with each
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strategy. BYD energy uses this matrix in order to identify the opportunities to grow their revenue
or sales by creating a new product or service, or by entering into the new market (Dogu and
Albayrak., 2018). The four strategies of Ansoff matrix are explained below:-
Market penetration: - It is a strategy in which an organization starts focusing on the
growth of the sales of their existing products in the existing market. The main aim of this
strategy is to grow the market share by selling the existing products or service to the new
customers or to the existing customers. This is one of the most effective strategy acquired by any
company and it involves the strategies like decreasing the price of product or service and
increase the efforts in conducting an effective promotions (Khoramshad., and et. al., 2019).
Product development: - This strategy mainly focuses on creating a new product and
introduced it to an existing market. This strategy can be major helpful for the firms if it is
conducted properly and to conduct this in an effective manner, there are number of ways like
research and development to create new product or service. The ways also involves developing
partnership with other organization in order to get the access of each other’s distribution
channels as well as by wholly acquiring the competition companies.
Market development: - At this strategy, organization more focus on entering into the
new marketplace by using their existing products. It has been said that this strategy has more
power if it used properly by the companies or an organization. This strategy usually works if the
behaviours of customers do not change rapidly in relation to the existing product or service. It
may help the businesses to establish various segments of its consumers or entering into the
markets of foreign country.
Diversification: - This strategy is considered as the most risky strategy because at this
strategy an organization more focus creating a new product and enters into a new market with
the same new product. The main reason for this strategy to be risky is that it consist an untested
product in the marketplace that the customers did not have any kind of about it. There are
basically two types of diversification such as related and unrelated diversification. When an
organization new product provides the same capabilities or at least exists in the same line is said
to be related diversification. And, Unrelated diversification is when an organization new product
or service are external of its known capacity (Larkin., 2020).
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BYD energy adopted the Diversification strategy because they focus on developing a
new product and then enter to a new market with that product. It helps the companies to cover a
large area and increase a significant number of customers.
Competences and competitive advantage of BYD energy
Competence is said to be set of skills that enables an organization to be better from their
competitors or rivalry companies. It is basically a quality of having ample of strength and
knowledge to be ahead in the marketplace. Competitive advantage are the elements which states
that an organization to produce the goods or service more better as well as cheaper than their
competitor companies (Mishra., 2018). The competitive advantages of BYD energy are
discussed below:-
 Cost based advantage: - BYD energy uses only the renewable resources that helps them to
keep their products service reasonable. The method of cost based advantage is considered as
the best way of achieving the competitive advantage because majority of the customers
prefers to purchase the product at the lower price.
 Advantage from differentiated product: - BYD always focus on innovation of a new
product that can help in improving the life of human beings by causing less pollution. The
differentiated product developed by this company is always favourable for the environment
or surroundings of the society. This moreover helps the company to create positive brand
awareness among the target customer of their products.
 First mover advantage: - The first one in the marketplace to create or develop some new
product or service is having an advantage to grab a large number of customers for that
particular product. BYD energy focuses on developing something new that will help the
customers as well as will not harm the environment. If this company succeed in creating
something unique from the competitors than it will have a competitive advantage (Onu and
Akinlabi., 2018).
 Time based advantage:- Time plays an vital role for the businesses because there is a right
time for doing any specific activity. BYD energy must conduct a deep analysis of market
and find out the opportunities like when to launch a new product will have a more impact on
the profits.
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 Technology based advantage: - At this time all the companies are working on developing
their technologies or innovating new technology in order to be ahead in the marketplace
from the competitors. BYD energy focuses on innovating new technologies that help them
to gain a competitive advantage.
Critical competitive analysis
7Ps of Marketing Mix used by BDY Energy
7Ps of marketing mix is a strategic marketing framework that is an acronym for product,
price, place, promotion, physical evidence, people and process. This framework is used by an
organisation to develop competitive marketing strategy to get success in a particular market
environment (Osovtsev., Przhedetskaya, and Sagidullaeva., 2018). 7Ps of Marketing for BDY
energy is elaborated.
 Product: It refers to the tangible assets/ goods and intangible services that an organisation
produces to offer in the market. BYD majorly makes auto-mobiles but it also manufacture
rechargeable batteries, solar panels and battery powered bicycles.
 Price: It refers to the amount of value in the form of money that must be paid for a specific
product or service produced by the organisation. The pricing strategy followed by this
company is skimming. In this strategy, the company can increase the prices of products as
consumers can pay higher amount.
 Place: It mainly includes the locations and areas where the organisation sells its’s products
and services (Lahtinen and et. al., 2020). BYD sell their products in their physical stores as
well as through their online stores. They have more than 30 production bases and industrial
parks in all over the world. Major factories are in Brazil, India, and US etc.
 Promotion: It can be elaborated as the strategy of the organisation to create awareness
among the customers about the products and services produced by the organisation. The
promotional strategy of BYD energy is to focus on effectively advertising their products in
order to make a larger presence in the marketplace.
 People: The human beings are the most important factors that affect the activities of a
business. The businesses have many stakeholders including investors, suppliers, employees,
customers and communities/ society in which they live (Mintz and et. al., 2021). It is very
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important for the organisation to fulfil their needs. The total number of BYD employees is
more than 224,000.
 Process: It can be explained as the series of steps, processes and activities undertaken by the
organisation to produce its products and services effectively and efficiently. The BYD
energy has to go through complex multidimensional processes including resource
acquisition, assembly line, quality control, inventory and stock, and supply chain
management, etc. while developing a new product.
 Physical Evidence: It can be explained as the physical aspects of the products offered by the
organisation that makes it unique and different from its competitions. The physical evidence
in BYD energy is the labels on the products and the qualities of experience that this
company provides.
Competitive Analysis
Competitive analysis is defined as a strategy which consists of researching about the major
competitors in the marketplace to gain an understanding of their marketing strategies, sales and
types of products. The competitive analysis of BYD energy with Tesla and Samsung SDI are
discussed below:-
BYD Tesla Samsung SDI
Product BYD majorly makes
auto-mobiles but it
also manufacture
rechargeable batteries,
solar panels and
battery powered
bicycles (Osovtsev.,
Przhedetskaya, and
Sagidullaeva., 2018).
Tesla makes and sells
a variety of products
like electric cars, solar
roof tile and panels,
Powerwall and
charging wall
connector.
Samsung SDI is a
company which
develops various
renewable energy
options like batteries
and electronic
materials.
Price The pricing strategy
followed by this
company is skimming.
Tesla charges high
prices to the customers
for their products as
Samsung SDI batteries
prices are very much
less as compared to the
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In this strategy, the
company can increase
the prices of products
as consumers can pay
higher amount.
comparative to the
BYD energy.
BYD batteries. These
batteries are basically
made for the middle
income group of
people.
Place BYD sell their
products in their
physical stores as well
as through their online
stores. They have
more than 30
production bases and
industrial parks in all
over the world. Major
factories are in Brazil,
India, US etc.
Tesla also sells their
products at the stores
as well as through the
online websites. This
company has majorly
ahead in the US
markets in terms of
selling their products
and generating
revenue.
Samsung SDI also
sells their products
through the same paths
like BYD and Tesla.
There are around 23
office locations in
around 12 countries
(Phillipov., 2019).
Promotion The promotional
strategy of BYD
energy is to focus on
effectively advertising
their products in order
to make a larger
presence in the
marketplace.
Tesla uses the most
effective method of
marketing that is word
of mouth. The
company basically
offers rewards to those
who shares the
experiences of using
the products with
some other person
(Rathemacher., 2019).
Samsung SDI does not
conduct the activities
of marketing for their
products like batteries
and renewable energy
resources as compared
to BYD and Tesla.
People The total number of
BYD employees is
more than 224,000.
The number of
employees in this
company is
This company has
around 28000
employees in all
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roundabout 70,800. It
has very less as
compared to BYD
energy.
around the world. It
has also very less
manpower as compare
to BYD firms.
Process The BYD energy has
to go through a
complex process in
developing a new
product.
Tesla conducts a
smooth process in
manufacturing their
products as compare to
BYD energy.
Samsung SDI
manufacture its
products under the
supervision of
Samsung electronics
group (Schiavone and
Simoni., 2019).
Physical evidence The physical evidence
in BYD energy is the
labels on the products
and the qualities of
experience that this
company provides.
Tesla offers much
more physical
evidence as compare
to BYD energy.
Samsung SDI puts
some labels in their
products about the
materials used to make
the product.
Ansoff Vector Matrix for Effective Marketing Strategy
Ansoff Vector Matrix can be explained as a strategic marketing tool that is used by
businesses to analyse and make an effective strategy for the growth of its sales as well as profits.
This matrix reflects four strategies that are by the various organizations to examine the best
strategy to increase market share of the organisation (Khoramshad and et. al., 2019). BYD
energy uses this matrix in order to identify the opportunities to grow their revenue or sales by
creating a new product or service, or by entering into the new market.
 Market penetration: It this strategy, an organization starts focusing on the growth of the
sales of their existing products in the existing market. The main aim of this strategy is to
grow the market share by selling the existing products or service to the new customers or to
the existing customers. This is one of the most effective strategy acquired by any company
9

and it involves the strategies like decreasing the price of product or service and increase the
efforts in conducting an effective promotions (Dogu and Albayrak., 2018).
 Product development: It is mainly focused on creating a new product and introduced it to an
existing market. This strategy can be major helpful for the firms if it is conducted properly
and to conduct this in an effective manner, there are number of ways like research and
development to create new product or service (Dawes, 2018). The ways also involves
developing partnership with other organization in order to get the access of each other’s
distribution channels as well as by wholly acquiring the competition companies.
 Market development: According to this strategy, an organization focuses on entering into
the new marketplace by using their existing products. It has been said that this strategy has
more power if it used properly by the companies or an organization. This strategy usually
works if the behaviours of customers do not change rapidly in relation to the existing
product or service. It may help the businesses to establish various segments of its consumers
or entering into the markets of foreign country.
 Diversification: It is considered as the most risky strategy because at this strategy an
organization more focus creating a new product and enters into a new market with the same
new product. The main reason for this strategy to be risky is that it consist an untested
product in the marketplace that the customers did not have any kind of about it. There are
basically two types of diversification such as related and unrelated diversification. When an
organization new product provides the same capabilities or at least exists in the same line is
said to be related diversification. And, unrelated diversification is when an organization new
product or service are external of its known capacity (Omer, 2021).
BYD energy adopted the Diversification strategy because they focus on developing a new
product and then enter to a new market with that product. It helps the companies to cover a large
area and increase a significant number of customers.
Critical customer analysis
Customer's analysis is one of the vital section of the overall company's plan for
performing the activities to identify the potential consumers as well as find out the needs or
requirements of these consumers (Shi., 2021). It is basically considered as a procedure which
helps the company to make an effective decision from the data of customer behaviour. The best
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way to conduct an analysis of customer is by conducting an STP analysis that is discussed
below.
STP analysis for effective Marketing of BYD energy
This analysis basically involves three stages that is segmentation, targeting and
positioning. In the first step it states about segmenting the market into different groups of clients
and then second is to analyse and determine the suitable customer group for the products or
service that company is offering. At last, it involves the positioning of the product or service to
mainly target the most valuable customer segment (Cao and et. al., 2022). BYD energy uses this
analysis to conduct an effective analysis about their product or service and the path to have a
good conversation about their product or services to the targeted customer segment. The STP
analysis of BYD energy is discussed below:-
Segmentation: Segmentation is the first step in STP analysis in which an organization
has to create various customers segments based on the specific criteria and characteristics that a
company has to choose. It basically includes four types of segmentation such as Geographic
segmentation, Demographic segmentation, Behavioural segmentation and Psycho-graphic
segmentation. BYD energy segment their customer groups by performing a deep research on the
perceptions of customers about the products that they offered (Shukla., 2018). This research on
consumer perceptions helps them to get an understanding about their products are made for the
higher income group of people.
Targeting: It is basically a tool to target segmented group by taking the consideration of
different elements such as the potential growth of each segmented group, the profitability of each
group etc. It helps the companies to examine the overall view and thought process towards the
company and their product or service. In context to BYD energy, it produces a high class of
battery of low as well high voltage and solar panels. This company conducts a strategy to record
the perception of customers that helps the management team to improvise the product
specification.
Positioning: This is the last stage of STP analysis in which the company has to make an
effective plan for creating a good marketing strategy and product positioning. At this stage, an
organisation performs various activities that helps them to set their product or service in the
minds of their target customers (SHUSHARA., USTINOVA, and Alexandrov., 2019). There are
basically three positioning factors that enable the companies to gain an advantage from the
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competitors such as experimental positioning, functional positioning and symbolic positioning.
In relation to BYD energy, they develop new strategy in order to make a good position in the
marketplace. This strategy also helps this company to achieve its goals and objectives more
effectively.
Critical Strategic Collaboration and Contextual factors
 Social trends: These trends have a major effect on the industry as well as community. It
is stated as a kind of activity in which the whole society has taken participation. These
social trends are majorly going very viral in now a day so for this reason many
companies’ wants to make an effective social trend in the social media platforms. This
has a very much potential in increasing the number of customers for BYD energy which
moreover results in the growth of the sales and revenue of company.
 Market trends: A market trend is considered as a sensed direction of the financial
markets or of an assets price. There are mainly three types of market trends such as short,
intermediate and long term trends. This helps the BYD energy to identify the strengths as
well as weakness of competitors in the marketplace. It also enables this company to think
about the changes that it has to make their production in order to stay ahead from the
competitors.
 Market structure: It is basically a structure that overall states that how different types of
firms are categorized in terms of the nature and degree of competition for goods and
services. There are mainly four types of market structure such as monopolistic
competition, monopoly market, oligopoly market and perfect competition (Sinha., 2018).
This element helps the BYD energy to easily get to known about the number and size of
sellers, selling cost, nature of product etc.
Task 2
Analysing the strategic marketing options available for BYD Energy firm as well as discuss the
challenges that the company can face in future:
The term strategic marketing is referred as practise of marketing approaches in order to
attain company goals by gaining a sustainable competitive advantage in market (Surtawijaya and
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Soegoto., 2020). The formation of marketing strategies allows the organisation to better meet the
demands of old customers as well as attract large number of customers in most effective manner.
In context to BYD energy, the strategic marketing options or strategy will support the
organisation to effectively tap into international markets and satisfy the demands of global
customers in both the manners such as ethical and profitable. The company can lay its focus on
developing the appropriate strategic marketing strategy by taking innovational as well as
strategic marketing strategies into consideration:
Innovation strategies
The innovation matrix defines the necessary innovative strategies which can be practised
by the company in order to manufacture most innovative products and services in market. It is
the model which shows the different factors of innovation (Stahl., 2021). The innovative
strategies help the company to analyse the innovative dimensions in order to launch new
products and services. In context to BYD energy, the innovation matrix supports the organisation
to properly know and evaluate to which category of matrix they fall into as well as also guides
the company to make critical changes in order to become ready for launching innovative
products. In short, the innovation matrixes facilitates and allow the organisation to identify best
innovative strategies that can aid the firm in gaining competitive position in the global market
conditions. The four types of innovation within the innovation matrix which can help the firm in
choosing best innovative strategies by gaining complete information about the problem as well
as the resources needed to implement the innovative changes. Below mentioned points reflects
the four types of innovation:
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 Architectural Innovation: The architectural innovation is also known as the re-
combinative innovation that considers taking the existing technology, approach or
methodology from one field to another field. This quadrant of innovation is defined as
the most common innovation that supports the organisation in gaining competitive
position in the new market places. This type of innovation is also considered as game
changing innovation which can assist the firm to successfully launch its existing
technological change into the new market conditions (Thrassou., Vrontis and Bresciani.,
2018). Radical Innovation: This type of innovation focuses on launching newer innovative
technologies in the new market places. This innovation covers the development of new
industries as well as implementation of transformational technologies. This innovation is
also defined as rare type of innovation as compared to other forms of innovations. In
addition to this, the radical innovation allows the company in gaining profitable
advantage in the global market environment. Incremental innovation: This type of innovations is the most practised and implemented
by organisations as it can be performed without considering high amount of budgets,
larger teams as well as can be implemented without changing the business processes and
strategies. In relation to this, it is also known as the most reachable and cost effective
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form of innovation. The incremental innovations are basically implemented by doing
small and insignificant improvements within the products and business processes of the
company. Disruptive innovation: This form of innovation deals with launching the new
technologies within the existing market conditions. In this, the company takes effective
measures in order to create a new value networks for the customers in market. In addition
to this, it also supports the firm to effectively transform the way customers interact with
their products and helps the firm to make positive changes to the customer experience.
The companies who adopts disruptive type of innovation are able to gain attention of
customers by launching innovative products in the cost effective manner (Wijaya., and et.
al., 2018).
Recommendation:
In context to BYD energy, it has been recommended that the company should adopt
Disruptive innovation strategy in order to attain competitive edge in the global market. This will
allow the company to expand its new innovation changes into the foreign markets in effective
manner. This can support the firm in attracting large number of customers which will directly
help it to improve profitable level in the market.
International marketing strategies
The international marketing strategies are the critical aspect which allows the company to
sell its products and services outside the national borders of the country. In order to reach into
international markets the proper planning as well as optimising business processes is imperative
to make for achieving international market objectives in most effective manner. In context to
BYD energy, the international marketing strategies can support the company to increase its
market share as well as customer base in the most effective manner. In relation to this, it can also
allow the organisation in gaining competitive position in existing marketing conditions. The
following international trade strategic options can be chosen by the organisation in order to enter
in the international markets. The explanation of different market entry is shown below: Exporting: In this, the company can enter into foreign markets by exporting its products
manufactured in the domestic country. There are mainly two types of exporting such as
direct exporting and indirect exporting. By adopting direct technique, the company can
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export their products without taking any support from the third party service providers. On
the other hand, the company needs to take support from third parties by choosing indirect
exporting. Licensing: In this, the firm can initiate entry into foreign market conditions by giving the
rights and permission to another organisation in order to sell products. This entry option can
be beneficial as the company can take advantage of the market share as well as newer
technology of the other company. This can support the organisation to effectively gather the
attention of new customers in the market. Joint ventures: This is considered as the less risky option in which the company can enter
the international markets by joining hands with other companies that has the large market
share in the global market. This can allow the organisation in gaining competitive edge in
the global market conditions.
Recommendation:
After analysing above discussion, it has been recommended that the BYD energy firm
must adopt exporting way for entering into new market. In this, the company can independently
take measures in order to gain large market share of foreign market. In addition to this, by
adopting exporting process the company does not have to share its profit with any other
company. Hence, by adopting this option the firm can successfully enter into foreign market
share.
Challenges faced by BYD Company:
The company may face various challenges in future, such as:
 Intensified Globalisation: The race in the era of globalisation may provide various
advantages but it will also lead to certain challenges (Biswas and Giri, 2019). The
continuous fluctuations in the international border laws and regulations may lead to the
failure of the organisation and cause many threats to the business in international market.
With the help of proper planning and optimising business processes are needed to
achieve international market objectives in most effective manner. In context to BYD
energy, the international marketing strategies can support the company to increase its
market share as well as customer base in the most effective manner.
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 Disruptive Supply Chain: The Company can face challenges in their supply chain
process as due to the impact of coronavirus the supply chain is badly affect. This can
pose the financial threat for the organisation as with the stoppage of supply chain process
the company will not be able to make higher sales of its products.
 Requirement of huge funds for continuous innovations: In context to BYD energy, in
order to adopt Disruptive innovation strategy and attain competitive edge in the global
market huge financial requirement is needed. T =his will allow the company to expand its
new innovation changes into the foreign markets in effective manner but will involve
extra costs. But with the proper investments and finance management, this can support
the firm in attracting large number of customers which will directly help it to improve
profitable level in the market.
 Changing Customer Trends: The changing behaviour of customers is always fluctuated
with the changing trends in the community (Wang, Tang and Pan, 2019). This leads to
the distraction of customer perspective on the products and services offered by the
organisation in the existing market. The customer trends pose a critical threat to the
changing dynamics of the business market throughout the world.
 Technological Changes: The era of electronic vehicles is on its way but no one knows
for long does this business stand an option in the rapid shifts of technology. The world
has seen the vehicle running on hydrogen fuel cells, nuclear power, and certainly many
more options that are evolving day by day. Such changes in the technology could cause a
potential challenge for the organisation to grow its business market.
Conclusion
From the above report, it has been analysed that it is very important to conduct the
analysis of company, competitive as well as customer for the better function of the company.
This analysis helps an organization to ascertain different ways for maximizing the profit and
minimizing the cost. It has also been concluded that BYD energy mission and vision is to
improve the life of the general public by enabling the ways of performing the activities without
causing any harm to environment. The above report has also concluded that BYD adopted the
Diversification strategy for the growth of their company. The vital competitive as well as
customer analysis of BYD energy has fully explained in the above report.
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