BUSI-2003-1 Case Study: Analysis of BYD's Operations Strategy

This case study examines BYD, a Chinese manufacturing company, focusing on its shift from battery production to automobile manufacturing. The analysis explores BYD's operational strengths, such as cost advantages and a strong organizational structure, particularly in the context of China's battery industry and government policies. The case study also identifies weaknesses, like the reliance on conventional production methods and past safety issues. Furthermore, it suggests opportunities for BYD, including expanding its online presence, leveraging social media, automating operations, and taking advantage of lower interest rates. The study references several research papers to support its findings, providing a comprehensive overview of BYD's operations and strategic considerations.

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BYD CASE STUDY
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BYD is known as a Chinese manufacturing company that was being established in the
year 1995. It was established as the merchant of batteries and components of the mobile handset.
However, in the present years, they tend to aim on its new business, which is known as the BYD
Auto, which is being established in the year 2003. Its headquarter is situated in Shenzhen. In
view of advancement, the change from the battery to that of automobile manufacturing, lot of
innovation and creativity is being shown by the company in its process of the production of the
strategy, design of the product, and in terms of integration.
The strengths of BYD’s operational strategy in china are as follows: the price of the byd
is considered as one of the biggest advantages or strengths of the company. The example which
can be taken is that the cost price of BYD-F6 with the automatic transmission varies from 90,000
to 100,000 RMB (Wang & Kimble, 2013). On the other hand, it is to be noted that the price of
the Honda Civic with the same configuration cost of about 120,000 to that of the 170,000 RMB.
So it can be said that the price of the BYD is a dominating advantage for the company. Another
strength of the company is that the organization of the company is good in itself. It can be said
that specialization helps the company to develop or enhance its ability of competition. It was
influenced by the new energy of the automobile, the stock spirit Buffett has financed into the
BYD so that the cost of the BYD enhances seven times more (Quan, Loon & Sanderson, 2018).
In the case of the Byd, the battery industry tends to dominate the china. However, it has also
become a significant automobile industry in China. It is on the basis of the battery techniques,
and the company was able to create a hybrid electric vehicle. It is because of the problems of
the environment and the policies that are being created by the government, BYD’s vehicle of
hybrid electricity tends to build a harmonious society, which helps to maintain a balance in

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economic and environmental development. Therefore, it can be said that the economic
conditions, as well as the total number of people, also acts a significant strength.
Since nothing can be perfect, the operational strategy of the BYD also has a certain
number of weaknesses. The conventional level of production is still followed by BYD, which is
to create new products just for the government or enterprises only. The example to prove to this
point is that the BYD-F3DM sold of about a hundred cars to that of the government and the
enterprises. However, it is to be noted that there lies a great difference from the actual plan,
which was planned to produce of about 10,000 for that year (Quan & Sanderson, 2013). The
most pathetic scenario that tends to lie is that BYD-E6 did not pass the safety check-in that of
China in the year 2008. It is a very well known fact that the techniques of the engine that the
company follows as well as the gearbox in China are not very much developed . on the other
hand, it is to be noted that the BYD never gave up on the application of the mergers and
acquisitions to stretch it sectors of influence or impact from the year 2003 (Loon, 2016). So it
can be said that the BYD was involved in inclusion as well as of the troubles related to the
operation of the capital by various degrees. It is because of these weaknesses or disadvantages
that the BYD fails to become the header of the automobile business in China.
However, the opportunities or the recommendations that the company can follow are as
follows. Since the users of the internet are constantly increasing, it is an opportunity or
recommendation for the company to expand its presence online (Cao, Zhang & Antony, 2018) E-
commerce is considered to the biggest trend, and there has been a tremendous development in
the sales of e-commerce. This indicates the fact that a huge number of people are engaging
themselves in purchasing online. The company can, therefore, earn a huge amount of profit or
revenue through the opening of the online stores and by making sales or profits through these

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online stores (Liu & Meng, 2017).It is, however, to be noted that there has been a great increase
in the total number of social media application users. One of the biggest opportunities or
recommendations for the company would be to use these social media applications in order to
promote its products and even to communicate with the customers. It can even be utilized for the
purpose of collecting feedback from the customers as well. Apart from the various departments,
technology tends to play a very significant role as it tends to bring a huge number of benefits.
Therefore, it is a recommendation for the company that the operations of the company should be
automated in order to limit or reduce the cost. It is, however, to be noted that the technology
helps to gather better quality of the information or the data of the customers and it even helps in
the development of the marketing efforts. However, it is to be noted that the lower rates of the
interest in comparison to the rates of the previous years tends to provide an opportunity for the
BYD to go through an expansion project that are being financed with loans in that of the cheaper
rate of the interest.

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References
Wang, H., & Kimble, C. (2013). Innovation and leapfrogging in the Chinese automobile
industry: examples from Geely, BYD, and Shifeng. Global Business and Organizational
Excellence, 32(6), 6-17.
Quan, X. I., Loon, M., & Sanderson, J. (2018). Innovation in the local context: A case study of
BYD in China. International Journal of Innovation and Technology
Management, 15(02), 1850017.
Quan, X. I., & Sanderson, J. (2013, July). A case study on the Chinese way of innovation.
In 2013 Suzhou-Silicon Valley-Beijing International Innovation Conference (pp. 68-71).
IEEE.
Loon, M. (2016). Innovation in the Local Context–A Case Study of BYD in China.
Cao, W., Zhang, Y., & Antony, B. (2018, October). Belt and Road: A New Journey for Foreign
Investment-A Case Study of the Internationalization Strategy of BYD. In 3rd
International Symposium on Asian B&R Conference on International Business
Cooperation (ISBCD 2018). Atlantis Press.
Liu, J. H., & Meng, Z. (2017). Innovation model analysis of new energy vehicles: taking Toyota,
Tesla and BYD as an example. Procedia engineering, 174, 965-972.