In this presentation the Analysis of BYD Automobile an Chinese Auto car-maker is done. Business Strategic recommendations are provided and a strategy for future growth is given.

1. Strategic Analysis of
BYD
Anuj Gandhi
Michael Pottratz
Chong Zhang
Di Zhang
Xuemin Hou
Lu Yang

2. Introduction:
• BYD Automobile was established in 2003
under the leadership of Wang Chuanfu
• In a span of 8 years it is the sixth largest car
manufacturer in china
• The parent company of BYD Automobile is
BYD Co Ltd .
• Vision :To be the leading car manufacturer
in 2025

3. • Support from • Economic
Chinese government conditions around
• The holding the world are weak
company has to be a and car sales have
Chinese company declined in the last
one year
Political Economic
Sociological Technological
• Huge population but
less space and hence • Inadequate power
public transport is lines
of extreme
importance

5. Core Competence : Competitive
Distinctive
lithium ion technology, Advantage:
Competence :
Low cost labor,
System integration, Low cost
lithium ion scale of
Project management High quality
production

6. Very High High Modest Low
Non-global Lithium ion
Lithium
distribution battery

7. Financial Performance:
Liquidity Ratios
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2007 2008 2009 2010 Automobile
Industry
Norm
Current Ratio Liquid Ratio

8. Financial Performance
Profitability Ratios
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2007 2008 2009 2010 Automobile
Industry
Norm
Net Profit Margin Return on Total Assets Return on Equity

9. Strength (Internal) Weakness (Internal)
Distinctive competence and Financial: limited working
competitive advantage : capital
lithium-ion technology and Core competency: automotive
manufacturing engineering
Human Resources: Low cost Outbound logistics: no global
Labor distribution network
Opportunity (external) Threat (external)
Political: Government policy Economic: Artificially low
support. Yuan
Socio-Cultural: Increase Technology: Current electric
population tax oil supply grids cannot satisfy ZEV
Buyers: Commercial ZEV demand
Entry: Scale of economy Supply: Lithium supply
Substitute: consumer ZEV

10. The BCG Growth-Share Matrix
High
100%
Probability of Technology Success
Future
B2B battery
pack
eBUS
$80M 70 60 50 40 30 20 10 0
B2B Reward(ECV)
battery
pack
B2C
consumer
eBus electric
cars
0%
Circle Size=Resources(annual) Low

11. Key Points :
• Current electric grids cannot satisfy
consumer ZEV demands
• Lack of global distribution network
• Lithium is a key component for BYD
which Is the differentiator
• Declining financial performance

12. Corporate Strategy
Sale of BYD Global Strategy
Consumer Reorganization Joint
Automobile(B2C) Partnership
Increase in Lean Win-Win
cash organization situation

13. Competitive Strategy
Sell electric
Focus on
busses to the
Electric Busses
Chinese
production
government

14. Low Cost Strategy
Acquire lithium Large
Increase in from volume and
Cash from Afghanistan low cost
sale of lithium ion
BYD battery is
New production
Automobile produced
facilities and
equipment's

15. Arenas
Low cost Lithium Ion Battery
Worldwide
Electric Busses for public
transportation in China
Staging Vehicles
Buy low cost lithium Sell BYD
Agreement with Chinese
Automobiles
government for selling
Joint Venture with
electric busses
Increase in the production Afghanistan
facilities of Lithium Ion Government to
Battery obtain Lithium
Internal
Economics Development
Lower cost for Differentiator
production of Lithium Low Price for making the
ion battery (Higher electric Busses
margin) Volume Production of
Subsidies provided by Lithium Ion Battery
Chinese government Quality of Products
for electric busses