Byd Auto

5275 words 22 pages
International Expansion Opportunities for BYD Auto | Country-Based Project |
THE UNIVERSITY OF AUCKLAND
BUSINESS SCHOOL
Master of International Business
Course: Global Business Operations
Course Code: Intbus 721
By Liwen Ji (1401148),
August, 2010

Contents
1. Executive Summary 1
2. Introduction 1
3. Internal Analysis: Strategy and Structure 1 3.1 Company Background 1 3.2. Value Chain Analysis 2 3.3. Porter’s Generic Strategy 3 3.4. Product Lifecycle & BCG Matrix 4
4. External Analysis 5 4.1. Initial Country Screening 5 4.2. The Economist Model of Country Analysis 5 4.3. Porter’s Five Forces 7
5. Market Entry Strategy 8 5.1. Timing of Entry and Market Entry Mode 8 5.2. International Strategy 8
6. Recommendation/ Summary 9
…show more content…
Furthermore, unlike R&D centers of other corporations, the preciseness and effectiveness of BYD Auto’s R&D lies in its “Three Level System”. The Center is divided into three departments – Central Research Department, Research Office and Technology Office. Once the Central Research Department invents a new technology and registers it as a patent, it would be sent to the Research Office for further development. Afterwards, the Technology office accepts the mature technology and applies it to generate new products.
BYD Auto utilizes two strategies aiming at cost reduction. Since the very beginning of its business, The Company has been manufacturing and supplying most of the car components by itself, which not only saves cost in the long run, but also eliminate its dependence on suppliers. Beyond that, by spreading its production in nine plants within China, BYD Auto realizes economies of scale and learning effect which further decrease its cost.
Another element that makes BYD Auto successful in Chinese market lies in its choice of marketing strategy. With the belief of the huge impact of modern media, TV advertising and online advertising has become the main strategies the company pursues. Differently from traditional advertisement, the company presented its E6 as the final prize in one of the most popular entertainment shows in Hunan Channel, which was watched by more than 40 million audiences; also, the “Ten Cents Auction” on a famous online shopping

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