What strategy should BYD, the largest global battery electric and plug-in hybrid electric vehicle company, implement to maintain its leading position amidst increased competition and geopolitical and protectionist policies that presented obstacles to future growth?
What strategy should BYD, the largest global battery electric and plug-in hybrid electric vehicle company, implement to maintain its leading position amidst increased competition and geopolitical and protectionist policies that presented obstacles to future growth?
BYD overtook Tesla as the leading EV manufacturer by building on their expertise in battery manufacturing, relying heavily on R&D, and reducing costs through vertical integration across its supply chain. BYD’s strategy differed markedly from Tesla’s by initially targeting the low-end of the market and focusing on reducing costs. By 2024, BYD had many vehicle models with differentiating features to appeal to different customer segments. But as the appeal of electric vehicles grew, so did competition. In this case, students will learn about the EV market, the different strategies used by Tesla and BYD to gain market leadership, and discuss what the BYD should do for future growth and profitability.
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