A Research On BYD’s International Target Market Selection And Internationlization Path

The new energy automobile industry is one of the seven strategic emerging industries in China.In this area,China has hopes of overtaking in corners.In 2008,BYD entered the international market after taking a stake in Berkshire Hathaway,where Buffett’s company works.The United States was the second largest market for new energy vehicles in the world at that time.The huge market development potential and advanced car-making technology allowed BYD to set the US market as a strategic goal.Entering the US market can not only enhance brand value,but also obtain a passport to the European market.After several years of hard work,BYD has finally become the new energy vehicle company with the highest market share of commercial vehicles in the US market.The success of the US market has also driven the development of business in the European market.The success of BYD is inseparable from the selection of the international target market and the determination of the internationalization path,and it is worthy of in-depth study.The development of BYD must be based on current situation.The current situation mainly includes three aspects: First,BYD is gradually losing its competitiveness in the international market.The lack of competitiveness of passenger cars,the limited commercial vehicle market,and the reduction of subsidies in the Chinese market have caused BYD’s sales to decline and its market share has shrunk.Second,The epidemic intensifies BYD’s industry competition.The localization of Tesla and the technological innovation of domestic new energy automobile companies have made BYD face double competitive pressure.Third,it is difficult for pure technology to gain a comparative advantage,and the new energy vehicle market is facing a reshuffle.In the future new energy vehicle competition,Apple,Xiaomi,NIO,Tesla and other auto companies and Internet companies have deployed the smart car field.The competitiveness of pure car manufacturing will decline,and multi-dimensional competition such as software and services will intensify.The logic of this thesis is to start from theoretical concepts and combine the market competition pattern and BYD’s business structure and product structure to propose the scope of BYD’s international target market selection and the content of its internationalization path,and use empirical methods to determine the important influence of the country and internationalization path selected by the international target market.Factors and rankings,based on important influencing factors combined with BYD’s successful experience in commercial vehicle products in the U.S.and European markets,and put forward recommendations for optimizing the international path for passenger vehicle products at the current stage.First,this thesis summarizes and categorizes existing research by reading the literature,defines the selection of the target market and the relevant concepts of the internationalization path research,and limits the scope of the research.Second,combined with the current situation of the U.S.market and the European market,it deeply studied the competitive landscape of the main international new energy vehicle markets.At the same time,it has conducted an in-depth study of BYD’s development history and current situation,analyzed BYD’s related new energy vehicle business,and compared it with competitors Tesla and CATL,Then summarize and optimize BYD’s business structure through the GE matrix.Third,the choice of international target market in the empirical analysis is based on market attractiveness indicators,and it is determined that BYD’s target market selection countries are Norway and Germany in Europe.The research on the path of internationalization focuses on the analysis of three elements: the external market environment,the company’s own conditions,and the company’s target market strategy.Through the analysis of commercial vehicle products entering the U.S.market,the European market’s international target market selection and internationalization path,BYD’s current internationalization path is summarized: before 2019,new energy passenger vehicles will be the Chinese market,and new energy commercial vehicles will be Focusing on the US and European markets,through the core advantages of motor,electronic control,and battery technology,establishing factories in major international markets and expanding market share through localized services.After2019,BYD plans to adjust the global new energy passenger vehicle business layout.Then,through empirical analysis,the factors that affect the choice of the international target market at the emergence stage and the index factors that restrict the development of BYD’s internationalization path are refined and ranked,and BYD’s passenger car business layout is locked in Norway and Germany,Analyzed that BYD should pay attention to the two important influencing factors of brand influence and corporate target market strategy.Finally,combining the successful experience of the commercial vehicle business in the US market and the commercial vehicle business in the European market,BYD’s existing internationalization path is modified to: take technology that shortens the research and development cycle as its core competitiveness,and maintain the passenger car and commercial vehicle market share in the Chinese market,maintain the commercial vehicle market share in the US market,and maintain the commercial vehicle market share in the European market,and shifting the direction of the internationalization path to the European market,focusing on the two main positions of Germany and Norway.In terms of products,by adding more competitive passenger car products to benchmark Tesla passenger cars,in other business strategies,BYD should expand its automotive battery business in the global market to increase its corporate competitiveness against CATL and Increase the scalability of the business model.It also proposes that BYD should cooperate in the smart car market to enhance the brand influence of its products,and in the target market,it should use cost-effective products and accurate marketing strategies to make up for the current lack of competitiveness in the innovation and reference of the business model.The contribution of this thesis is to provide logic and basis for empirical analysis through the research of theoretical concepts.The process of empirical analysis also uses principal component analysis and analytic hierarchy process,respectively,to carry out the important influence factors of the target country’s choice range and internationalization path.Based on the empirical analysis,and based on the results of the empirical analysis combined with the successful experience to analyze the problems that BYD is facing at this stage,it completely proposes and perfects the internationalization path of BYD’s new energy passenger vehicles.The analysis of this thesis includes: An empirical analysis of BYD’s operating status、major international markets for new energy vehicles、international target market selection and internationalization path influencing factors.A comparative analysis with Tesla and CATL was added to the research on specific business research.Combining the international target market selection and the development of the internationalization path,it also puts forward practical suggestions,hoping to provide reference and assistance for BYD’s international target market selection and the optimization of the internationalization path.