Analysis Of BYD's New Energy Vehicle Market Entry Mode In The United States

In recent years,the new energy automobile industry is rapidly gaining traction throughout the country.Led by BYD,a large batch of new energy automakers are entering the rapidly developing track.Since August 2017 in which this article was written,BYD has become one of the world's largest new energy automakers.But in the rapidly-developing process,the current BYD still has more hidden troubles.First one is having certain geographical limitation in different sales territories.Along with BYD new energy automobile products are paying more attention to domestic markets,the competitions among domestic markets are more and more intensifying,as well as the potential entrants are pouring into these markets,political directions also have some changes accordingly.Second one lies in the existing gap between the wholevehicle manufacturing technologies of BYD and that of other globally-renowned manufacturer,like GM and Toyota.Third one is the relatively-low existing brand value of BYD.Fourth one is the expectation for its excess production capacity.Based on that,BYD has actually opened the path to globalization development for new energy vehicles sectors throughout the world.Meanwhile,as one of the world's most developed economies,the United States has many unique advantages.Firstly,the current fierce market competition pattern in this country would offer BYD management level many treasured experiences.Secondly,with the large number of automobile talents,the United States is one of the origins having a batch of high level technologies.Finally,it further unveiled this country's large new energy auto sector hasn't fully opened yet.So,it can be well understood it has a huge potential market size.In fact,all of them would create BYD a series of superior conditions,such as obtaining advanced technical resources,achieving market profits,enhancing brand value and digesting excess capacity.Based on the US market and the actual condition of BYD,this paper adopted the entry mode decision-making model for overseas market created by Franklin.R.Root.And according to the requirements of such model,by taking the given motivations as pre-conditions,it further made a series of external analysis,internal analysis,restrictive-factor-based screening analysis,motivation-matched comparative analysis,as well as risk-prediction analysis around the given candidate models concerning how BYD entered the US market.Finally,it turned out the entry model with the coexistence of direct export and joint venture should be the feasible one BYD new energy vehicles marching in the US market.But considering of some differences between the final conclusion and the model BYD actually chose,after a series of further explorations on the hidden dangers of the above-mentioned entry model BYD has chosen,this paper further gave corresponding countermeasures.Additionally,this paper partially optimized and reformed the above entry mode decisionmaking model for overseas market from Franklin.R.Root.On one hand,it added enterprise financial analysis module into this model for facilitating the current situation of BYD can be accurately analyzed.On the other hand,it made a series of subtle improvements around the model structure to make this model well matched with BYD's internationalization causes for bringing conveniences to make more accurate judgments in future.Therefore,this paper obtained an appropriate entry model around how BYD enters the US market and proposed a series of useful references and suggestions.