Case Study Analysis: BYD's Operations, Supply Chain, and Strategy

This case study examines BYD's operations strategy, focusing on its objectives, competitive advantages, and supply chain. The primary short-term objective was to produce cheaper lithium batteries, while the long-term goal involved expanding charging stations. BYD achieved a competitive edge by developing cost-cutting strategies, including cheaper machines and labor, leading to its success in the mobile phone battery market. The company integrated innovative ideas into its supply chain by leveraging the Hong Kong Stock Exchange to fund expansion and moving into the vehicle industry, which allowed them to increase their batteries business. BYD's strategic decisions, such as internalizing production and focusing on green marketing, enabled them to excel in both the battery and automobile markets, ultimately producing and selling electric cars. The case study highlights BYD's ability to adapt and compete effectively in the global market.

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

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company to improve its sufficiency; BYD obtained low labor coast; they did not depend so
much on outsourcing. The company also performed well not only in green marketing, but
also in the automobile market. The company has been able to produce, and to cell electric
cars.

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References
Schroeder, R., Rungtusanatham, M. J., & Goldstein, S. (2012). Operations management in the
supply chain. McGraw-Hill Higher Education.
Huckman, R. S., & MacCormack, A. (2009). Byd company, ltd. HBS Case, 606-139.