Research Of Market Environment And Competitive Strategies Of BYD New Energy Vehicles In USA

As one type of transportation vehicles,automobiles have become an indispensable part of our life.However,besides facilitating daily travel,automobiles produce carbon dioxide during driving,which is regarded as one of the causes that result in global warming and greenhouse effect by scientists.Therefore,decreasing emission of vehicle exhaust and popularizing new energy vehicles have been ranked as a national industrial strategy by many countries around the world.BYD,one of the worldwide leading new energy vehicle manufacturers,not only has core technology advantages in researching and manufacturing new energy vehicles,but also wins a great reputation in world new energy vehicles markets benefiting from more than 15 years of experience in market promotion.By the end of 2016,BYD has introduced Blade Electric Vehicles,Hybrid Electric Vehicles and Electric Bus to consumers.What's more,in addition to business in domestic markets,BYD is also expanding business actively in overseas markets.For instance,countries like America,Japan,Brazil,South Africa and Hungary have all knitted into the network of BYD overseas markets.America is one of the earliest countries that make developing new energy vehicles a national strategy.After about ten-year development,America has become the largest country that sells and uses new energy vehicles around the world.Beginning from Clinton administration in 1993,the federal government has regarded developing new energy vehicles as the development goal of American vehicle industry in 21st century.The Bush administration and Obama administration have also passed several acts and polices to encourage the development of new energy vehicles.In addition to policy support from the government,low carbon economy,environmentally friendly lifestyle and technological advantages in vehicle manufacturing and energy-efficiency are all external marketing factors for popularizing new energy vehicles in America.In 2010,BYD set up its North American headquarters in Los Angeles.After seven years,BYD built its own factory in Lancaster,a city of Southern California.The electric buses K9 which are produced in the factory have been used as public transit tools in some cities of Pennsylvania and Colorado.But in view of American new energy vehicles' sales share in 2016,BYD accounted for less than 1%of total sales share compared with other new energy vehicle manufacturers.Therefore,BYD still has a long way to go.The main competitive disadvantages lie in a single product line,limited distribution channels as well as low brand recognition.Therefore,it's necessary to study BYD market environment of new energy vehicles in America and figure out corresponding competitive strategies,because it's critical for BYD to gain competitive advantages in fierce competition in American new energy vehicles markets.The thesis can be divided into seven chapters.Studying BYD market environment of new energy vehicles in America and proposing competitive strategies are main purposes of the thesis.SWOT model is used to analyze BYD new energy vehicles' strengths,weaknesses,opportunities and threats.Besides,the theory of market competition strategy is also adopted as a theoretical basis to come up with constructive competitive strategies.The first chapter is an introduction,including research background,research significance,research methods and related theories.The second chapter is literature review.This chapter presents related studies in terms of new energy vehicle industry and enterprises' competitive strategies from domestic and foreign perspectives.It' s found that,on one hand,domestic scholars mainly focused on domestic market and seldom on international market while studying BYD new energy vehicles' competitive strategies;on the other hand,foreign scholars mainly studied new energy vehicles' competitive strategies from a perspective of an industry instead of an enterprise.The third chapter is the history and development of BYD new energy vehicles.Established in 1995,BYD has three main business domains including IT industry,automobile industry and new energy industry.In 2003,BYD began to research and produce new energy vehicles and gradually created its competitive advantages with iron technology and dual model system as its core technological competitiveness.The establishment of headquarters in North America in 2010 symbolized that BYD entered American new energy vehicle markets.The electric buses K9 are the main product that BYD produces and sells in America.However,BYD has disadvantages over other new energy vehicle manufacturers in product portfolio and market share in American new energy vehicle markets.The fourth chapter analyzes the market environment of new energy vehicles in America with PEST model after reviewing its development situation.From the view of the development history of American new energy vehicles,policy support in energy-efficiency,environmental protection and new energy vehicle popularization plays an important role in promoting new energy vehicle industry in America.For one thing,from the change of sales volume of new energy vehicles in America,it's learnt that the sales volume of electric buses increased from 27 thousand in 2010 to about 50 thousand in 2016,increasing more than 85%in total.For another,from the view of market share of each new energy vehicle manufacturer in America,Tesla,Chevrolet and Fort ranked the top three in 2016,while BYD new energy vehicles' market share was less than 1%.Based on the analysis,we find that sound policy system,low carbon economy,environmentally friendly lifestyle and leading technologies are all important factors that propel the development of new energy vehicles in America.The fifth chapter is devoted to the strengths,weaknesses,opportunities and threats of BYD new energy vehicles in America based on SWOT analysis.It is found that manufacturing cost,independent intellectual property and self-operated factory are strengths of BYD in America.Single product line,limited distribution channels and low brand recognition are its weaknesses.Although BYD has such weaknesses in American new energy vehicles markets,from the view of external environments,we find that the increasing demand for new energy vehicles and widely-distributed charging stations are opportunities.However,due to the inconsistency of American federal government's policies and Trump administration's different energy views from that of the previous administrations,the possibility of changes in energy policy and competition from potential competitors are also external threats for BYD in American new energy vehicle's markets.The sixth chapter is recommendations to BYD on competitive strategies of new energy vehicles in America.Based on theory of market competition and above findings,corresponding strategies are proposed,including competitive cost-saving and price strategy,brand image differentiation strategy,product portfolio diversification strategy,independent charging network strategy and customer intimacy strategy.The seventh chapter is the conclusion of the thesis and prospect of BYD new energy vehicles in America.