Strategic Marketing for BYD Energy: Company, Competitor and Customer Analysis

This report analyzes the strategic marketing aspects of BYD Energy, including company analysis, competitor analysis, and customer analysis. It also discusses international marketing strategies and challenges faced by BYD Energy in the future.

Marketing

Contents
INTRODUCTION .....................................................................................................................3
MAIN BODY.............................................................................................................................3
TASK 1......................................................................................................................................3
Critical Company Analysis of BYD Company......................................................................3
Critical Competitive Analysis ...............................................................................................8
Critical Customer Analysis ...................................................................................................9
TASK 2....................................................................................................................................10
International Marketing Strategies.......................................................................................10
Challenges faced by BYD Energy in Future........................................................................13
CONCLUSION........................................................................................................................14
REFERENCES ........................................................................................................................16

INTRODUCTION
The modern historic landscape is very disruptive and although the ease of doing
business has increased considerably, the volatile nature of the external environment has only
increased with time which has made it hard for firms to operate in the market without a clear
cut strategic plan charting its plan for consistent growth. The process of marketing is also
very important in determining the extent of success that a company that incur in the target
market as simply selling products is not the end goal for modern businesses and the process
of marketing goes beyond the concept of selling and includes crucial elements such as market
analysis, competitor and customer analysis along with STP measures and after sale services
(Chouaibi and Chouaibi, 2021).
The process of strategic marketing is very important to undertake and it refers to the
use of a varied combination of marketing tools and techniques to achieve and maintain
competitive advantage in the market segment which the company operates in and achieving
organizational objectives through strategic planning of operations. This report will highlight
the concept of strategic marketing along with its various aspects such as company analysis,
competitor analysis and customer analysis in the organizational context of BYD energy
which is an advanced tech company operating in the energy sector and is aiming of
expanding its business and make it very sustainable.
MAIN BODY
TASK 1
Critical Company Analysis of BYD Company
BYD Co Ltd. is a Chinese conglomerate manufacturing company which has been
successfully operating in multiple markets globally such as U.S.A and the UK after being
established by Wang Chuanfu in February, 1995 and the firm is currently headquartered in
Shenzhen, Guangdong. It multiple branches and subsidiaries worldwide including the
following:
 BYD Automobiles–This firm specializes inn production of advanced automobiles
and Electronic vehicles which are a part of its sustainability portfolio. The company
also makes buses, trucks in both traditional and electrical variants (Hafezi and et. al.,
2020).

 BYD Electronics–A Chinese company which mainly engages itself in the production
of consumer electronics such as handset manufacturing sand complement assembly of
numerous smartphones.
 BYD Energy - This is a new subdivision of the company which is a result of focusing
on the clean energy and green engineering solutions due to rampant future demand
estimates. The company is spread in major countries like Singapore, UK and U.S.A to
name a few. The firm was established in these regions in order to primarily focus on
manufacturing of medium and small scale battery manufacturing with the long term
goal of being fully sustainable provider of clean energy solutions.
The company has been successful in carving out a respectable market niche for it is a globally
known and trusted brand which is working hard in making the world a cleaner place and the
company’s mission, vision and values contribute massively to this ambitious goal and they
are duly listed herein.
 Mission
The main mission that the company has established in the market is that it wants to
use technological innovations to meet people’s expectations for living a better and more
futuristic life. The company is working steadily towards this mission as it has made many
products in important public domains such as public transport and good storage solutions in
the form of batteries and storing units which have all been successful market launches (İpek,
2020). Another mission of the company is to expand in more markets in order to make
consumers everywhere travel and use gadgets which provide better services while being
friendly to their surroundings.
 Vision
The major long term vision which has been driving the group forward in its journey to
power the world through intelligent and clean solutions is to bring in a clean energy
revolution where all product lines and services provided by the company is complete
sustainable along with being carbon neutral. This vision is much closer to realization than the
public or BYD’s competitor’s realize as the world is slowly moving towards capturing

sunlight as the primary source of energy which is evident after seeing solar panels capturing
sunlight during the day, clean energy storage solutions collecting and transmitting that energy
to multiple homes and buildings, electric cars patrolling the streets and sunlight even being
used to charge electrical devices (Javed, Degong and Qadeer, 2019). BYD ultimately aims to
become the first company in international markets to turn the domain of public transport and
transit sustainable and green which currently is far from thereality as these vehicles such as
rails are sources of massive population. However the company has made innovations like
Skyrail which is a step in the right direction.
 Values
The company’s entire market positioning in multiple countries is based upon being
ethical, Eco-friendly while being completed market and customer oriented and its values
reflect the same sentiment. The different values are broken down as part of the messaging
which focuses on people and their dreams as BYD stands for “Build your dreams” are listed
here below.
1. Compete – The nature that drives their company is aggressive and competitive as it
aims to bring forth a clean energy revolution and be at the forefronts when it arrives,
the firm believes in undercutting and outsmarting its market rivals and inspire people
to keep dreaming.
2. Pragmatic–The company started with humble beginnings in China and has come a
long way in the clean energy and electronic vehicle sector and is currently one of the
companies spearheading the market in clear energy solutions and preaches the
message to its audience about struggling hard to make your dreams come true
(Jiménez-Asenjo and Filipescu, 2019).
3. Passion–The Company aims to employ a passionate workforce who not only respect
and adhere towards the organizational vision but also push forward the message of
living sustainable and clean with minimal carbon footprints. The company performs
every action in the market with passion and aims to inspire people to keep on fighting
against all odds.
4. Innovation–Whenever the company has landed in trouble or things have ben tough, it
has relied on innovative changes and new technology integration such as sky rail,

clean storage units and green vehicles. The message being conveyed here is that one
should always overcome difficulties with smart work for completing dreams.
Resource based view is a widely sued model of strategic marketing which divides and
analyzes the major components of businesses which have a major role to play in its trade
operations and development of competitive edge to profit and survive in its target market. It
has been applied below for BYD Energy for a comprehensive analysis of its current
competencies, market capabilities and future direction.
Tangible assets – These asserts are physical in nature and mostly form the infrastructural
capabilities of a company and can be physically felt, touched and transferred from one owner
to another in their physical presence. Major examples include land, building and heavy
machinery (Jubair and et. al., 2019). BYD is a major producer of electronic goods and energy
solutions and is the market leader in sectors such as supply of clean and rechargeable
batteries and second largest supplier of cell-phone shells which is made possible with the help
of the companies advanced factories and facilities.
Intangible assets – These assets on the other hand are the exact opposite of tangible resource
as they are do not possess any sort of physical appearance but can still be owned by the
company for exclusive use. Unlike physical resources, these cannot be acquired easily from
the market are built from the ground up over a long period of time depending on the
company’s popularity, their market share, marketing tactics and goodwill. BYD Energy owns
many trademarks and patents which the best examples of these types of resources are such as
sky rail and sky shuttle which exclusive technological innovations are made by the company
by investing as lot of time and money in the research and development department of BYD
(Zhang and Yang, 2021). The intangible resources of BYD energy are its biggest competitive
advantage as its advanced facilities help inn manufacturing most products and their
components in-house which saves their operational and procurement costs while creating
specialization in processes such as clean battery making and developing of smart storage
facilities.
Apart from dividing resources based on set criterion's, the framework of resource
based view also takes multiple considerations regarding the assets of a business which are
listed herein.

 Heterogeneous–This assumption takes into account that every firm that exists in the
world has different sets of resources and access to varied capabilities to run their
business systems because if every business could employ the same strategies and
invest the same amount of resources, then every product would be homogeneous and
market competition would cease to exist.
 Immovable–This assumption concerns itself with the fact that under the framework
of resource based view, resources are considered immune to rapid movement and
transfer of ownership at least for the short term which makes it impossible for one
business to perfectly copy the product of another company (Yaïci and et. al., 2020).
After the resources have been analyzed using the resource based view, they are put through a
VRIO (Value, Rarity, Imitability and Organization) to find out about the firm’s current
advantageous resources and competitive edge in the market which helps in strategic
marketing sand planning of future operations. The resources of BYD have been subjected to
this analysis below to highlight its competencies.
Resources
and
capability
Valuable Rare Imitable Organizatio
n
Competitive
Advantage
Infrastructure Yes No No Yes Competitive
parity
Research and
development
Yes Yes Yes Yes Sustained
competitive
advantage
Clean energy
solutions of
public transit
Yes Yes Yes Yes Sustained
competitive
advantage
Trademarks
and Patents
Yes Yes No Yes Temporary
Competitive
advantage

From the above analysis, it is clear that one of the biggest strengths of the BYD energy
company is its robust research and development department which has been a constant source
of market shaking innovation through recruitment of talented workers and massive
investments being done by the company (Knight, Czinkota and Khan, 2018). Another
resource that came out as a source of competitive advantage over a long period of time is its
clean energy solutions especially in the field of public transportation which has not been
replicated by its competitors. The future strategic marketing and planning of the company
should center on developing and streamlining better clean energy solutions for vehicles and
public transportation to make travel easier and more sustainable and maintaining its
technological edge through continued investments into research and development.
Critical Competitive Analysis
The industry within which BYD energy operates is quite competitive with a massive
future growth expected and predicted by major firms and market analysis which are experts
in their field. There has been a massive spotlight thrown on companies to engineer and
develop clean energy solutions for each and every activity in life so that the devastating
effects on the environment that human race has inflicted on our planet in the name of
technical advancement which has resulted in major developments such as a massive arrival of
electric vehicles and solar powered innovations which are cheaper and more sustainable.
Some competitors operating in the same market as BYD energy are described below using
the competitor portfolio model.
Competitor Portfolio of Tesla
 Background – Founded in 2003 by a group of engineers who wanted to change the
world using electric vehicle offerings, Tesla has come a long way over the years and
is now a market leader in EV’s in multiple countries and has become the industrial
beacon when it comes to developing clean energy solutions for the future. The
company’s philosophy is to provide cutting edge technology which is easy to use and
contribute to making the world a cleaner and more futuristic place.
 Products –Tesla mainly keeps its original vision strong as its primary market offering
is still luxury electric cars with premium and fan favorite models such as the model S
and the Tesla model 3 but the company has expanded and has been providing
exceptionally high quality products in the solar energy segment with products such as

solar panel installation and the power cell which is an innovativebattery which acts as
a generator without making any noise or burning up any fuel (Ladia and et. al., 2018).
 Strategy – Tesla’s strategy involves issue of the different tactics such as digital
marketing, a viral referral system which helps the company indulge in word of mouth
marketing along with social media marketing campaigns led by its eccentric CEO,
Elon Musk.
 Positioning–Tesla is a market dominator in the clean energy along with the electronic
vehicle segment thanks to its strong positioning within which it emphasizes that it
sells technology and the future along with its cars and its customers flock to the brand
for the promise of unparalleled luxury in driving which is showcased by it’s over the
top advertisements.
Competitor Portfolio of Samsung SDI
 Background – It is a company based in Korea which is a part of the huge popular
multinational brand of Samsung Electronics and it mostly focuses on clean energy
solutions and component manufacturing for major market offerings for Samsung and
other brands.
 Products – The products of Samsung SDI are quite diverse and cover many market
niches such as small scale recyclable batteries, smart storage options and special
batteries designed for electrical vehicles.
 Strategy – The strategy the brand follows is directly borrowed from its parent
company as it focuses heavily on the fact that it’s products are quite futuristic and
have no major ill-effects on the environment and also focuses as much on B2B as on
B2C models as most of its products have extended business uses (Li, 2021).
 Positioning – The positioning of then company is quire strong globally as many of its
products have been critically acclaimed. The company has an ambitious vision that it
wants to turn all its product lines fully sustainable and aims to operate as a fully green
company which helps supply Eco-friendly components to other business concerns and
customers alike.

Critical Customer Analysis
The customer base globally for BYD energy is quite diverse and spread out as it has
expanded in multiple countries such as UK, U.S.A and Singapore to name a few and being
one of the market leader in clean energy solutions and battery manufacturing, it has to
undertake a detailed market research investments to properly cater towards it’s multiple
customer segments. A comprehensive view of the company’s customers is described below
using the STP model which is a strategic management tool to identify, target and properly
advertise goods and services to the target audience of business.
 Segmentation–The market segmentation involves dividing the broad target audience
on the basis of multiple factors for ease of marketing and strategic focus on the
needed customers which match the product value being offered by the business. BYD
Energy divides the demographical basis of income and age (Mengyao, 2021).
 Targeting–The customers that are targeted by the company’s promotional drives and
marketing campaigns involves the youth and people between age 20 to 50 as this
market segment is not only environmentally aware but are also interested in owning
and displaying futuristic and expensive looking goods which BYD indeed offers. The
company also targets people with an above average income level as most of the goods
which are clean and sustainable are currently suffering a price bump to recover from
COVID-19 losses.
 Positioning–The company has managed to project a positive brand image as most of
its operations have been cleaned it has had a stellar ethical track record devoid of any
major scandals and keeps its customers happy. It is slowly transforming the way clean
energy business works and has positioned itself as a versatile business which sells
batteries cheaply but also is building hi-tech transits to revolutionize the way people
travel daily.
TASK 2
International Marketing Strategies
International marketing strategies are defined as the plans or strategies which are
being adopted by the business organisation for the purpose of expanding their operations in

the international market and helping promote its services and products in an international
environment. There are several strategies which can be adopted by BYD Energy to expand
their operations in the international market. Some of them are given below: Global standardization strategy – This is one of the best international marketing
strategies in which big companies use similar messaging, themes and promotional
tools across its different social media channels in order to keep the brand perception
and positioning similar across countries. BYD energy when it comes to the clear
energy industry is a major global presence with a lot of loyal fan following because of
its smart batteries and transit vehicle services and it should use this strategy to
promote its good and services in countries like Singapore and UK. Using
standardization internationally can also help BYD energy in saving operational costs
involved in designing and executing its promotional campaigns. Event marketing strategy – This is also a majorly used strategy of international
marketing in which companies market their products and services by developing with
a themed exhibit or display or partner up with major brands and their events to widen
the reach of their products and services. BYD energy is a multinational company
which operate sin multiple lucrative countries such as U.S.A, U.K and Singapore and
its outlook towards providing advanced and futuristic products makes it a prime
opportunity to display them with the help of events. The firm can either plan its own
events where it can display the marvels of its skyrail technology and present live
demos of the automatic driving technology. The other option includes partnering up
with other clean energy brands such as Tesla to showcase their products in their
events or supply electric cars in rallies or vehicle exhibitions for better marketing
prospects.
 Franchising: It is also an international marketing strategy under which the franchisee
pays royalties and fees to the franchiser for the purpose of using trademark of a
company and selling products and services. BYD energy can use this international
marketing strategy by creating a chain and the group of individuals manage the
branches of organisation in the other country (Müller and et. al., 2018). BYD has a
strong brand image which they can use for the purpose of expanding their business
operations in the new international market. It results in the establishment of better
recognition of organisation in the target market. BYD Energy can use franchising to

better promote its products by developing market presence in some uncharted
territories which will not only help in increasing sales but build stronger global brand
perception.
Innovation Strategies
When it comes to the concept of innovation, the application across business concerns
is quite diverse as it can range from small upgrades and optimization to existing products and
services or lead to technological revolutions which results in brand new product lines and
service avenues. When it comes to BYD energy, the business has heavily relied on every type
of innovation be it process streamlining or creation of new clean energy solutions. Some
major ways in which BYD energy can use innovation strategies has been listed herein.
 Disruptive innovation – This is a major theory of innovation which details the way
in which small companies enter established markets or established companies enter an
existing market segment with a new product line and slowly topple its competition by
offering superior quality products. The way this theory works is when the product line
brought forth by companies results in the competition getting eliminated or a brand
new market segment opening up for the company with no real competition in it. BYD
can successfully use disruptive innovation as it is one of the only companies who is
working actively on designing green and clean public transit machines on a large
scale. The sky rail technology can provide major disruption due to its nature to make
transportation emission free and help vehicles drive without assistance through the
autonomous driving technology.
 Incremental innovation – This theory is the exact opposite of the disruptive
innovation theory as firms which undertake this process do not work to make a new
product or service line through revolutionary means of innovation. Instead, this theory
states that continuous small improvements and streamlining made to the small or large
scale operations of a company related to currently existing products and services.
BYD energy has access to a massive amounts of financial resources thanks to its
continued market dominance in the field of batteries and storage solutions and instead
of developing new technologies, one other way it can make better progress in the
clean energy market is by further optimizing its electronic products. The firm should
focus on increasing the production of its clean and rechargeable batteries while further

reducing the emission produced it through limiting the amount of Lithium-Ion present
in the batteries.
 Product innovation – This is one of the most common forms of innovation strategies
which are followed by firms worldwide which involves a firm making changes to its
product lines by taking principles of both disruptive and incremental innovation
techniques. Companies can either make small changes to its products to change
certain aspects of it such as color and taste profile or it can make large scale changes
to drastically differentiate it from the existing competition such as changes in
packaging and product body design. BYD energy can make substantial product
innovation its batteries which can be further diversified to become able to power
smartphones and small scale electronics in a sustainable manner which would allow it
to corner major markets such as India in a much better manner.
Challenges faced by BYD Energy in Future
Below mentioned are the several challenges which are being faced by the BYD energy in
future: Lack of Infrastructure: Wind and solar energy can be a better investment given their
lifetime costs. Lack of infrastructure is an obstacle to the development of renewable
energy. The current infrastructure is built primarily for fossil fuel and nuclear power
plants. The existing energy infrastructure cannot handle large amounts of renewable
energy and is in urgent need of reform (Shah, Sirts and Pfahl, 2019). Most
importantly, some of the best sources have no infrastructure at all. Determining the
size of the solar system is a big challenge. As a result, if the system is too small, it
will be difficult to build power generation. Therefore, if the solar system is too large,
it will require a large amount of energy storage. Without a powerful storage system,
the energy produced would be lost. Power Storage: The most important thing is that the lack of power bearings is an
affordable price. Renewable energy sources produce most of their energy at certain
times of that day. Power generation does not match the time of peak demand. The
difference between sunshine and wind can not provide 24-hour on-demand power to a

week. Solar energy and wind are not predictable. Power generation is variable and
load is variable. Energy production from burning fossil fuels is more consistent. On
the other hand, intermittent power generation from renewable energy sources requires
an efficient storage battery system. Battery storage systems help save extra energy for
later use. You can reduce network instability and prevent power outages. Advances in
technology have improved the life and battery capacity of storage systems. Its high
cost hinders widespread installation (Téguia, Chambost and Stuart, 2018). To make
solar energy storage cheaper, you need to lower the price of batteries and BYD
energy's batteries and electronics are priced a little too high.
 Lack of policies, subsidies etc.: Lack of policies, subsidies, incentives and regulations
in favor of renewable energy technologies is hampering their widespread adoption. To
attract investors, the renewable energy market requires clear policies and legal
proceedings. In other words, the government must introduce and implement support
measures to strengthen the renewable energy market. In the transition from the old
fossil fuel industry to the renewable energy industry, corporate lobbying, political
pressure, and the inherent reliance on fossil fuels remain a challenge. The dangers of
climate change are beginning to have a major impact on human life. Above all, the
introduction of renewable energy is the only way. Various government incentives and
subsidies have dramatically reduced the cost of renewable energy and currently, there
is no big difference between them and fossil fuel prices per kWh. This can certainly
help BYD energy to gain a position in the energy market but mismanagement can also
be dangerous.
CONCLUSION
The above report went into detail regarding the various complex activities involved in
the process of strategic marketing which is an important process which dictates the use of
various marketing tools and techniques to develop and sustain competitive advantage. The
report was undertaken in the organizational context of clean energy companies operating on a
global scale and dealing with the production of green transport vehicles, batteries and storage
solutions. There was key focus on the mission, vision and objectives of the company along
with its value because they play a vital role in determining the type of marketing campaigns
and strategy it formulates to get its operations underway. The report also included various

types of market analysis which included detailed look at the current innovative capabilities
and competencies of such companies using the model of resource based view, competitor
analysis along with the process of STP (segmentation, targeting and positioning). The report
also detailed some strategies which such companies could use to grow their business further
such as international marketing techniques and innovative strategies to make better products.
It was concluded from the report that marketing is one of the most vital processes for modern
day businesses and strategic marketing process based around product innovation and
technological upgradation is the way forward for companies which are operating in the clean
energy and solutions industry.

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