Strategic Marketing Analysis of BYD Energy: Options and Challenges

This report provides a comprehensive strategic marketing analysis of BYD Energy, a high-tech organization focused on renewable energy solutions. It begins with an introduction to strategic marketing and its importance, followed by a critical analysis of BYD Energy. The analysis includes a situational analysis, examining the company's internal and external environments through a resource-based view and marketing mix analysis. A competitive analysis compares BYD with Tesla and Nesscap Energy, highlighting their marketing strategies and core competencies. Customer analysis is conducted using the STP model to understand market segmentation. The report then discusses marketing options and planning, including innovation and relationship strategies, followed by a discussion of potential challenges BYD Energy might face with these strategies. The report concludes with a summary of the findings and recommendations for BYD Energy's future marketing efforts.

Strategic Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Critical analysis of BYD Energy.....................................................................................................1
Situational Analysis................................................................................................................1
Competitive Analysis.............................................................................................................4
Customer Analysis..................................................................................................................5
TASK 2............................................................................................................................................8
What are the marketing option and planing for the company. ..............................................8
Challenges faced by the company with both strategies........................................................10
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................13

INTRODUCTION
Strategic marketing is a method by which company analysis its position in market. It
helps focusing on the companies strength in order to provide better services and value to their
customers. Through strategic marketing company can develop a a plan through which they can
utilise their core strengths and offer best possible products and services with a sense of value to
its consumers (Alao and et. al., 2020). Build your dreams is the high-tech technology innovation
organisation in order to provide a better life to its consumers. The report will cover analysis of
strategic marketing and a critical evaluation of challenges in order to successful strategic
marketing. There will be a situational analysis of company BYD and analysing its resources
based view and marketing mix.. There will be a discussion regarding competitive analysis of
BYD. Also there will be critical customers analysis with the help of STP model and for further
understanding through identifying issues related to it. Further analysis there will be discussion
related to marketing options and planning in future of the respective company through
innovation strategy and relationship strategy. Lastly there will be discussion regarding the
challenges that might be faced by BYD energy in future of above strategies.
MAIN BODY
TASK 1
Critical analysis of BYD Energy
Situational Analysis
It is the process through which company can gather information of its internal and
external environment in order to assess its current strength, weakness, opportunities and threats
that will help in providing a guide to achieve their goals and objectives (Anfer and Wamba,
2019, April).
The chosen company is Build Your Dreams. As the main aim of the company is to build
a efficient, stable and safe solutions for renewable energy. From energy generation and offering
storage to their application, enterprise is dedicated in providing zero-emission energy solutions
in market. The mission of the organisation is to provide a provision of non-toxic energy with
zero emission and zero pollution. The core value of the company is in excellence, passion,
pragmatism and innovation.
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Resource based view is essential in order to accept and to fulfil external or new
opportunity by using an existing resources innovative;y through acquiring new skills. This will
help in determining the resources that are available within the enterprise and relate them with
companies capabilities of the organisation in silent manner. In context to BYD the resources
based view that are relying on the tangible and intangible resources that can be understand
through the help of VIRO analysis (Chandra and Sharma, 2018). While organisation is stands
effective towards their innovation and products, they might also effectively enhancing their
scope for improvement in their production capacity and storage solution. The enterprise has
various capabilities in order to understand that the VRIO framework will be helpful, through
which analyse the capacity and capabilities of the organisation. Which is mentioned below.
VALUE
 The value of the products is high which will provide various benefits to company.
 The brand value of the organisation is high because of their market share and constant
innovation of the company.
 The resources that BYD is using in order to provide products in the market valuable to
the company which give strength to the organisation.
RARE
 The products that BYD is offering in the are rare and no other company is providing
similar products.
 The resources of the company are rare as they are outsourcing them and they are creating
products with zero-emission which proved to be rare for the company.
 The technology that company is using in order to produce the products is rare to the firm
because they are their own innovation (Chinese, 2019).
IMITABLE
 The products and technology that BYD is using are not imitable which provide strength
to the organisation.
 The technology through which they are producing is imitable as it common to get same
technology in the market.
 Some of the machinery of BYD is non imitable, because those are companies own
production.
ORGANISABLE
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 BYD operation function is fully organisable and has a smooth operation within the
business (Graesser, 2019).
 The production function of the organisation has a systematic function which is the
strength of the company.
BYD also have a competitive advantage through their location presence. It is completely
devoted to develop the organisation culture that are passion, innovation and equality which are
the core elements of the company. With strong and positive work environment and a career
opportunity to their employees, firm has a family sort of organisation which also contributes to
the overall efficiency of the enterprise. As the organisation structure of the company is flat
hierarchy which provide various benefits in order to manage the operation smoothly without any
hassle. The very strong asset of the company are their innovation R&D and production
department which has a core strength of the enterprise competitive advantage. BYD has made it
very difficult fort their competitors to imitate their products as the company is holding large
number of copyrights.
Marketing mix analysis of BYD
It is the set of actions or tactics that a firm can utilise in order to promote their brand or
products in the market. This will help in identifying and understanding the market and demands
of the customers (Guo and et. al., 2020). There are various core elements of BYD in order to
understand that the marketing mix of the BYD is mentioned below.
 Products- The products of the company are battery box low and high voltage for
commercial and residential purpose and large scale of battery projects in order to capture
the potential market.
 Price- The pricing strategy of the company is according to the customers segment. As the
brand is well established in the market and has a premium range over their competitors
company is using the premium pricing strategies.
 Place- The distribution and channels of the BYD is basically through the online retailing
and domination player on Amazon. The company is using online platform to distribute
their products and has a domination position on Amazon (Hansen and Juslin, 2018).
 Promotion- The promotion strategy of BYD is through digital marketing and company is
advertising their brand through online and social media. Organisation has also develop
their communication strategy in order to spread the brand image in market.
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Competitive Analysis
It is the process of identifying competitors in the industry and researching their different
marketing strategies. The purpose of competitors analysis is able to understand the competitors
strengths and weakness in order to compare BYD own to identify the gap in the market. This
will help organisation to recognize how they can enhance their business strategy. Competition in
the market helps competing with companies own strategies and helps in hoping up with the
trend to become the best in the market. It also help understanding the company to do out with
competitors in areas that helps in getting customers attention. This result in a competitive edge
over others in certain industry sector. BYD is developing their competitive advantage on low-
cost R&D strategy (Jiang, 2021).
Competitor
Tesla- It is an auto-maker and energy storage company that designs and sells highway-
capable of electric vehicles. Tesla is an American multinational automotive and clean energy
organisation. It was founded by Elon Musk in 2003 with establish headquartered in Austin.
Tesla also builds products with infinitely scalable clean energy generation and storage products.
Tesla is believes in moving towards a zero-emission products for better future.
Nesscap Energy- It is in researches, manufactures and develops ultra-capacitor products.
As the enterprise's ultra-capacitor is a rechargeable energy storage device that is used in modern
applications ranging from portable electronic devices to high-tech 'green' cars which are
available in both modules and cells. It was founded by Kim Sun- Wook in 1999 with
headquartered established in Great Lakes (Ju and Gao, 2022).
Strategies
Tesla- The marketing strategy is hugely for avoiding the paid advertising and instead of
focusing on social media marketing. The 7ps of marketing of tesla suggest that the products and
places factors of marketing mix has a main sources of Tesla competitive advantages. The
marketing strategy of tesla is generally based on following principles.
 Marketing through customers experience.
 Using effectiveness of social media.
 Through cross-promotional opportunities.
Nesscap Energy- The marketing strategy plays an important role in success of the
company. The organisation focusing on the social media platform and also through its strong
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brand image in order to attract the customers. The firm is using the customers experience and
different collaboration tools to promote itself in the market (Kang, Diao and Zanini, 2020).
Competences
Tesla- The core competencies of the organisation is there innovative manufacturing
techniques, power train and vehicle engineering and the enterprise's distinctive competency is on
battery pack technology, distribution and safety designs. The core capabilities of the company
allows them to deliver their business model that are their power-train intellectual property and is
importance in-house design and their engineering team.
Nesscap Energy- The core competencies of enterprise is there new innovation and
technology. The energy storage of the company is valuable and proved to their core competences
in the market. As it plays an significant role in success of the company. The organisation has a
core competencies based on their super-condenser, supercapacitor and their electric double layer
capacitor with high energy density.
Competitive position
Tesla- It is the top leading player in EV sector. As Tesla has the most marked
competitive advantage that is not output. It also has a domination on the economics of lithium
battery cells and their EV battery packs. Tesla's main competitive advantage is their emanate
focus on environmental sustainability, their incorporation for technology innovation, cost
leadership and product differentiation among other aspects. Tesla is top leading fifteen most
valuable brands in worldwide (Ketter and Avraham, 2021).
Nesscap Energy- Organisation has become an award-winning global leader in
technology innovation and product development of ultra-capacitor. It is top leading brand in
market dealing in products with both modules and cells that are being used in order to enhance
the performance of modern application.
Customer Analysis
The customer analysis is the important sector of firms organisation plan and marketing
plan. It helps in identifying the target customers, acquire the needs of customers and offer the
product satisfaction in market. Customer analysis helps market researchers to professionally
examine the needs and wants of its consumers. Through this organisation can able to develop
their marketing strategies in order to the wants and needs of their customers. It also company to
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develop new products and services in market. The main aim of customer analysis is to create a
point of view of business's consumer base. This can be achieved through STP analysis.
STP Analysis
It is a marketing approach where company segment their audience, target the best
potential audience segment for its products and the position its products in order to attract their
target segment effectively. It helps in prioritizing propositions and then help in developing and
delivering personalized and relevant messages in order to engage with different audience. In
context to BYD the STP analysis will help in creating marketing segments where they can
achieve a competitive edge in order to use in their marketing strategies (Lin and et. al., 2018).
To create and increase consumer value, it is important to use different marketing tools
and analysis for marketing information and plan in order to set of marketing activities. The
merged using of a certain set of marketing tools professional will construct a organisation plan
ore effectively and helps in increasing value of consumer and satisfy customers needs that are
depending on the sector of market.
Segmentation-
The BYD has segmented its target audience according to the demographic segmentation.
As the company is is dealing in automotive industry, so the market segment audience will
generally on the the high-income range people and the age group of the audience will be above
60. According the psychographic market segmentation the customer who likes fast technology
and storage solution of energy for commercial or personal usages come under the target
segmentation of market for BYD. The lifestyle based segmentation is supported on the people
who wants luxury lifestyle are the part of the target market segmentation.
Targetting-
The target audience for BYD are people under market segmentation and as the market
segmentation is large the target market is large. The target audience of the company is based on
the loyal customers of the company and business who are dealing technology with BYD for
getting their technology based equipment. The target audience of the firm are the people
demanding for new faster technology and businesses dealing with the company but mostly loyal
customers of the brand (Nazir and Shavarebi, 2019).
Positioning-
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BYD positioning is from being the innovation to application, company is become the first
company that offers comprehensive new energy solutions, as it helps in driving the development
of the new energy industry. The promotional method that company is using in order to positions
its place in the market through customers experience and mouth conversation. As there are huge
loyal customers of the brand in market which is the biggest promotion of the company.
Critical Strategic Collaboration & Contextual factors/issues
Critical Strategic factors that results in organisation certain competitive strategy, this
might involve a way of company chooses the position of market for themselves.
 The organisation collaboration with other parties in order to achieve their strategic
marketing goals- The structure involves a various companies collaboration with the
same background industry. As BYD can collaborate with such brands in order to
increase its presence and efficiency in the market (Ren and et. al., 2022).
 The key relationship, challenges and dynamics- Due to collaboration BYD can face
several challenges and changes in their business environment dynamic. This can be in
positive way or in negative way. And with collaborate there will wide range of
relationship with the other companies clients and this will increase the connection with
other clients.
Contextual Factor Analysis
 HR of the company- The essential success factor of the organisation is the BYD is their
workers. BYD is identifying the organisational culture as firm that is rich in heritage,
quality standards and has a value which they believes are critical factors to their success.
Employees are important part of the responsibility in their role. In order to provide a
products to customers in market.
 Technological advancement- HR provides the opportunity in order to create the
unbelievable projects for the BYD company success. The organisation was able to
develop an easier access to their customers. Co-branding provides the opportunity for
market power to both of the company. They will able to manage a adding value to both
the brands and crate a better image for their stakeholders and enterprise. The strengths of
the organisation is their technology and being the top leading brand to provide
automotive in market (Saldanha, Mulye and Rahman, 2022).
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 Advertising- As being one of the top leading brand in worldwide with strong brand
position in the market. The promotional and advertising is easier process for the company
to attract the customers. As the customers are already attracted towards BYD with their
brand image in the market with their high-tech products. With the loyal customers base of
the brand the company is well establish itself. And for advertising the brand the company
is using mouth conversation through customers experience and social media platform.
The BYD company is Oligopoly that means the company can change their price, quantity,
advertisement and quality of the products in order to increase the advantage over their
competitors. BYD has a huge advantage in automotive industry to compete with their
competitors in the market with their strategies and several aspects (Saxena and Vibhandik,
2021).
TASK 2
What are the marketing option and planing for the company.
Innovation strategies
An innovation strategy is a way in which company provides a detailed plan and set goals
to create, that can make customer pay willingly. Innovation does not arise from thin air,
innovation comes from environment and procedures who work deliberately so that they can
designed so that they can facilitate their development. BYD has come up with innovation
strategies like changes in the energy storage system (ESS) as the company has come up with
more flexible design and also have add a lot more customization so that people can meet there
flexible needs of there customers (Schiavone and Simoni, 2019). Company has also come up
with the zero- emissions of the energy ecosystem. They have also create affordable and cheap
solar power stations. There is no competition of this company in electric transportation sector as
they create best and durable and innovative design in there products that is beneficial for all there
user this is the the main way that company value there customer by providing them the best and
affordable for there product and the bringing innovation in there products as this is advantage for
the company as this brings new innovation in there old products and they release new innovative
product in the market. Company has expertise in creating rechargeable battery and they have
created some of the best rechargeable battery that they can cover the Chinese market and they are
competition with the Japanese imports.
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BYD has created some of the best and innovative auto mobile design in the china that
has helped them to cover a lot of market demand and with all this innovation and changes in the
old products has innovated. One of the best and well know new paper business week has stated
BYD as the 8 most innovative company (Tao, 2022). As company knows the taste of there local
and so company BYD emphasis on the providing what these people like and what they want in
there product so that company can make there customer willing to buy there products. For
example company know that in china people usually travel with there family and friends and in
china car represent hat type of person drives it so the car exterior should look decent so they
came up with a car F3 where they made the exterior of the car look decent and in inside they
made the backseat of car very spacious. So this the reason how the company value there loyal
customers.
Relationship strategies -
This is a mix tactic that is used by the company where the country to build strong
relation with there customers and also there are various ways through which company improve
the customer experience. Company main aim is to provide the best product and most comfortable
customer service to there customer (Wang, Ding and Huang, 2022, February). As company
keeps in mind what there customer needs like in china car represent the way person is so a car
should not be wild and aggressive looking and in china car are drives by the driver and if drive
by the owner they do not travel alone they travel with the family or friends so they require a
good backseat space so that's why BYD company has introduced there car F3 which has a decent
looking exterior and and they have very big wide and spacious seats. This as liked by a lot of
there customers in china and that's why this car is one of the most well know car in china.
Company BYD take care of the people as they have created created so many zero
emission energy ecosystem. They have created a large number of ESS that acre complete
customizable that has helped Chinese market to grow strong and all there user to have ESS of
the size and power of there requirement of the customer they have also created a large number of
electric auto-mobile that are best suiting the requirement of all the local customer and this can
say that company has the value for there customers and they know how to treat there customers
the invention policy of the china is free.
BYD company works for profit and customer satisfaction as the company has created a
car in the minimum budget that even low cost household can purchase these car and these car
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are in the low budget but with all the feature that a high end car should have are present in that
car the company decided to sell that car for ¥ 70,000 this is the price that any household can
afford. This is another reason why people support this brand and trust to buy all the products
created by them. These are the way by which the company show hoe much they care about there
employees and how loyal are they towards there employees demand and comfort and how much
they value there customer with the help of both innovation and maintain relation they have
covered the complete market of the china which is a big thing for the company as they keep o
trying to provide innovative products that are beneficial for the people and also try to make them
in the budget that everyone can afford. And by maintain there good relation with there customers
and providing them with all there needs fulfilled products this can be the bes beneficial for the
company (Wanjiku Ndungu and Wacuka Gikandi, 2018).
Challenges faced by the company with both strategies.
Innovation strategy :-
There are pro and cons of everything here are some challenge a company will by
adopting these strategy-
Employees aren't empowered to innovate –
There is a fear in the mind of many manager that if they try to bring innovation in there
work the will lag into there day to day work and this will employees not taking risk or trying new
things or ideas. Internal innovation requires support of leadership and manger so that employees
can get brave enough to get innovative.
Company is missing innovation strategy :- as like any organisation innovation strategy is crucial
as the innovation dacites the ways in which the function of the organisation are implemented
with any effort or risk (Wu and et. al., 2021).
Lack of collaboration :-
Collaboration is essential in an organisation understanding the importance of
collaboration internally collaboration external can be equally crucial in a organisation
innovation brings together industry partner customer and even competitor to drive industry
froward.
Opportunity :-
In these organisation a lot of people do not get opportunity that leads to an issue as there
higher up do not allow them to become more innovative and they do not have time and spae to
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