BYD targets the world

The case focuses on the growth of electric vehicle (EV) market in China and the emergence of BYD as a major player aspiring to gain a significant foothold in global EV markets. The case traces the growth of the industry in China, identifying factors that have contributed to the rise of Chinese companies in this industry. In doing so, it offers a rich portrait of the industry landscape encompassing contextual factors, including the role of government and governmental subsidies to the industry, the intensity of competitive rivalry shaping the race for Chinese market share, and the nature of buyers and how their demands have forced Chinese companies to hone their skills in design and value engineering, which can be used to mount an assault in global markets. After providing a broad discussion of the industry, the case delves deeper into the strategic choices made by BYD as it rose to the top ranks of global players in units produced. The case closes with broad questions about the directions that BYD could pursue as it seeks to conquer advanced country markets from its China homebase. In doing so, the case sets the stage for debate on issues relating to transferability of home-grown advantages, the entry barriers that they will confront in markets such as the United States, and ways in which the barriers can be overcome.