Strategic Marketing Evaluation

Critical company analysis of BYD Energy

Mission or vision of company

Build Your Dreams (BYD) Energy was established in 1995 as high-tech institution devoted for technological innovations towards better life. The main workings are to build safe, stable addition to efficient storage solvents for renewable energy. It is more dedicated towards catering solutions in context to zero- emission energy. The business focuses on manufacturing electric bicycles, automobiles, rechargeable batteries together with trucks, buses and so on. Its existing automobile model range comprises of plug-in hybrids, petrol engined vehicles as well as electric vehicles. Mission of BYD Energy is to create clean energy eco-system which reduces reliance on petroleum for the world. In addition, creating provision of non-toxic energy solutions with zero pollution together with zero emission. Passion, excellence, innovation and pragmatism are some of its core values. Ask for assignment help from our experts!

Directional and Growth strategies

Directional strategy

It is mentioned as strategy which is entailed by enterprise to take net long together with short position within a market (Blakeman, 2018). It is implemented for enhancing profits, accomplishing objectives and business growth. In present era, institutions creates own directional strategies as per the business cope and aim. However, basic directional strategies are retrenchment strategy and stability strategy that are discussed below:

Retrenchment strategy: It is the strategy which is basically designed for faltering entities to improve poor performance. It is turnaround tactic which assists in regaining company' strength along with financial stability through scaling back weaker operations and emphasising on areas that supports to generate profits. When chosen business will use the strategy, it can reduce operational costs as well as capacities by divesting underperforming areas and outsourcing functions in the direction of success.

Stability strategy: The strategy that assist managers to stop investment of expansions and make expenditures to for business stability in current market. With this strategy, managers of BYD Energy will emphasis more on maintaining existing position and incrementing improvements through changing operations as per perspective of targetted customer groups.

From above directional strategies, management team of BYD Energy follows stability strategy so that they can cut investment expenses and make directions for maintaining strong position in current market place.

Growth strategy

It is said to the strategy which is set with the aim to win larger shares of market. Moreover, it is action plan which allows businesses to gain higher market shares against the current ones so that business attains expansion objectives (Growth strategies. 2020). There are various ways for a business concern to achieve growth aspects. Some includes investing towards customer acquisition, adding new locations, expanding product line and so on. By using various growth strategies, managers of BYD Energy make plans for advancing further together with accomplishing enterprise growth in field of technological innovation. Some of growth strategies are discussed below:

Concentration strategy: The strategy that is majorly used when organisational products have huge growth potentials is termed as concentration strategy. It is pursued prior to diversification within growing market place. Further, it is bifurcated into two types that are vertical concentration strategy and horizontal concentration strategy. In context to vertical strategy, growth can be achieved through internally through expanding operations of company. Similarly, horizontal strategy is employed for expansion of products into new markets and enhancing target audience size. In relevance to BYD Energy, adoption of concentration strategy will assist in expanding existing operations and increasing customer size.

Diversification strategy: Strategy which focus towards characteristics which provide competitive advantages to entity is diversification strategy (Friedman, 2018). It involves concentric diversification and conglomerate diversification. Enterprises that uses conglomerate strategy only works in current industry despite of expanding in new one. However, Businesses which opts concentric strategy majorly secure strategic fit within new industry about which they posses significant knowledge as well as development capability. When managers of respective firm will use diversification strategy then they will be able to diversify the business and gain competitive advantage.

From the discussed growth strategy, BYD Energy pursues its workings through diversification strategy for developing the business and widening product scope across distinct market sectors. Moreover, diversification strategy opens various new opportunities for the entity and expansion of business horizons offers wide competitive advantages to it.

Resource based View

The model which sees organisational resources as key against performance of other businesses. It is a framework or theory that firms uses for determining exploitation of its strategic resources with purpose of achieving competitive benefits. The framework only emphasises on managerial attentions towards internal resources for the effort to determine assets, capabilities along with competencies for catering superior competitive advantages (Ghosh, 2017). In comprises of intangible addition to tangible resources including knowledge, information, skills, assets, an processes. When all the internal resources are integrated in proper manner then it provides competence to company. The main areas on which the model relies are tangible, intangible, immobile and heterogeneous resources that have some unique attributes and provide competitive advantage to the company. Managers of BYD Energy uses the model so to emphasis on key aspects of the areas through which they can gain competence and competitive advantages in the dynamic market. The description of all the areas in terms of chosen business are following:

Tangible resources: These are physical things of company. All the assets including equipments, land, buildings, capital and many more are tangible resources of a specific business (Hall, 2017). The tangible resources that provide competence to BYD Energy are its capital, land and building, furniture, securities in terms of cash, bond and stocks, machinery and so on. The company can easily bought these resources from the market and these provides little competences as others can also acquire identical tangible resources whenever they want.

Intangible resources: The resources which posses no physical appearance but are owned by institution to gain advantages in competition. Few intangible resources includes intellectual property, trademarks along with brand reputation. These resources aids managers ability for thorough delivering of strategies and making customer relationships. In association to BYD Energy, it have skills, brand reputation, patents for producing technological innovation, customer lists, goodwill and trademarks that comparable companies cannot purchase on market. They have more chances to stay with organisation and are considered as main sources that aids competitive advantages.

Heterogeneous resources: These are based on assumption that capabilities, skills as well as other resources which are with other companies are different that that of other institutions Kono, 2016.). If companies will have same amount addition to similar mixture of resources then they will not compete in market. So, the resource view model views that BYD Energy achieve competitive advantage through different resource bundles. As chosen company deals in technological innovation as well as have effective marketing assets and uses them as key resource to gain competence in market.

Immobile resources: Resources which lacks movement from company to company are categorised into immobile resources. Because of this, companies unable to replicate resources of others which provides huge competitive advantages to a particular business. Intangible resources including intangible property, brand equity and many more are immobile.

The above mentioned resources helps companies to gain competitive advantage in the dynamic environment. BYD Energy have all types of resources that provides its critical competitive advantage to sustain against competitors. Its few of resources are also covered in Appendices in its cash flow statement, income statement and balance sheet.

Critical Competitive Analysis

Competitive analysis is assessment of current as well as potential competitors of business. With this analysis, organisational managers collects information about offensive addition to defensive contexts so that they can identify various opportunities and threats to compete with them. The two competitors of BYD Energy are as examined below:

Valence technology: Valence technology is manufacturer of energy storage solutions. It provides various custom lithium phosphate energy storage systems as well as lithium magnesium phosphate technology in market. It was established in 1989 and have headquarters in Austin. The main products of the company are majorly used in plug-in hybrid vehicles that are motorbikes, cars and other commercial vehicles (Valence Technology. 2020). It facilitates its services across the nation and major areas includes Las Vegas, Northern Ireland, China, Nevada and Suzhou. The main directional strategy that the company has adopted is retrenchment strategy in which it withdraws its selling from certain market with its specialised products for gaining beneficial turnaround. Moreover, its resources includes assets, knowledge, market information and machines which provide competitive advantage to it. It is considered as biggest competitors of BYD Energy as it have strong competitive position in technology industry that is gained by selling high quality batteries commodities needed in various vehicles. As BYD Energy offers high and low voltage products for commercial purposes and its projects are related to gaining large revenues. However, Valence Technology needs to make various improvements within its quality of batteries for competing with selected business. Want to get Assignment Samples?Talk to our Experts!

Daimler: It is another competitors of BYD Energy that is headquartered at Germany since 1929. It is leading multinational automotive corporation who owned shares in number of motorcycle, car and bus vehicles of various brands (Daimler. 2020). Its products includes auto-mobile as well as commercial vehicles including buses, passenger cars, vans and trucks. It is leading manufacturer of premium cars as well as commercial vehicles having global reach. Fleet management, financing, insurance, innovative mobility along with licensing are some its competence services that differentiate it from BYD Energy. At present, Daimler company uses wide diversification strategy so to diversify the business with new products across overseas. The company have made strong competitive position in the automotive industry through offering digital mobility services and wide types of solutions towards using energy in products.

Critical Customer analysis

Customer analysis is one of most important aspect for the business to analyse the customers, their needs and demands and emerging trends of market in order to serve consumers in proper manner (Macchion, Fornasiero and Vinelli, 2017). In context of BYD which is a high tech company contributed towards technological innovation to raise living standard of people. To serve consumers in best manner needed to study properly about consumers and their behaviour that are as follows:

Key target customer segments

BYD aimed to build the efficient, safe and stable storage solutions for renewable energy. The major consumers of respective organisation is CARTA, Marin Transit, Kern Transit and PSTA many more which majorly are operator of mass transportation that focus on using the renewable energy. BYD segmented their suppliers and distributors to purchase products and services to them. They operated in the business world by providing batteries and renewable energy that is cost effective that is lower than their major competitors.

Value

Value regards the products and services offered by the organisation to their consumers in order to satisfy their needs and wants in positive manner (Mahoney and Tang, 2016). It is very much important for organisation to understand the consumers needs and wants and accordingly provide the products to them. Such as their majorly consumers are operated of bus transportation in which required batteries are different from truck or cars. It is very significant for BYD to identify the place where they can sell the products and services. In that regards they importantly collect information about vendors, suppliers and manufacturers to serve consumers in best manner.

Behaviour

The behaviour of BYD consumers are that use the renewable energy by using batteries that cost effective in nature and enhance value of products and services. The consumers of BYD are always prefer to purchase most cost effective products and services that saves cost positively.

Factors issues:

Trends

The batteries and renewable energy that are trendy in market as in today's competitive environment consumers are very much aware about environment (Moutinho and Vargas-Sanchez, 2018). So it is potential for them to focus on the range, speed and acceleration in their products and services to meet the consumers needs and wants in proper manner. The another major trend is digitization that fuel sharing of economies in positive way that helps to reach at large no. of consumer base positively.

Issues

The major issues faced by the organisation which are related with the promotions and distribution of products and services into the marketplace (Nagle and Müller, 2017). The promotional tool which is used by BYD is not so much effective to make people aware regarding the products and services regarding organisational goods that hinders their self interest in gaining desirable outcomes. With sometimes they not able to supply the products and services to the ultimate consumers in specified time period that create dissatisfaction in their consumers. So it is very much important for them to evaluate the major areas in which they can improve and provide delighted experiences to their potential consumers.

Examination of TWO module key topics

Strategy is the a method or plan which is used by organisation to bring out the desire future by completing task and objectives. When organisation faces different types of problems then strategy suggest what need to do, how and when for the purpose of completing task effectively. In other words, an art and science of planning and marshalling resources that helps to make effective resources in order to attain the business goals (Nijssen, 2017). Build Your Dreams Energy is a high tech organisation which is devoted to technology innovation for better life. The main aim of organisation is to build efficient, safe and stable storage solutions for renewable energy. This company dedicates to provide zero emission energy solutions .

Innovation strategy

This is a plan and strategy which is used by organisation to grow market share and profits through product and service innovation. Innovation refers as to bring something new and modify the existing product according to needs and wants of people (Palmatier and Sridhar, 2017). By innovation a organisation can attracts customers that processes to high productivity. This strategy is helpful to create a solution, product improvement and disruptive the innovation that helps to work accordingly. Innovation strategy is consider as plan, made by corporation in order to enhance product range by using new technology and services by investing money and resources. This is important for organisation to evaluate the organisational performance and adopt innovation strategy that can help to provide competitive advantages. With the help of innovation strategy value of product and services can be increase as customers get influence and they make decision to buy the products. For instance, Build Your Dream organisation uses innovation strategy at the time of bringing innovation in its existing products and services as per customer need that satisfied customers and increases organisational profitability. If innovation is not adopting by company then it can be difficult for company to take competitive advantages. The new ideas and creative thoughts is developed by management in context to chosen organisation that helps to deliver that kind of products and services for profits. Under innovation the management try to bring something new that is advantageous for business organisation. For instance Build Your Dream is using innovation strategy to produce the electrical batteries by brining innovation in existing products. This strategy will help to develop electrical vehicle that can help to provide healthy and pollution free environment (Renz, 2016). Energy storage solution can also be provided by organisation with the help of electric batteries. The mission of BYD is to change the world by creating a complete, clean energy ecosystem that helps to reduce the world's reliance petroleum. Employees are trained on time to time basis for the purpose of introducing new technology and implement it within organisation. To innovate the electric batteries, innovation strategy involves different types of strategies that are as defined:

Proactive - This strategy is related to research and orientation whi9ch helps to get the knowledge and ideas about customer's choice and competition then research is required accordingly. This is challenging strategy and interventions that is used on ongoing basis to reduce the likelihood of occurrence of challenging behaviour (Sahaf, 2019). This helps to gain the knowledge through various resources that create highly risk for organisation. In this strategy, radical and incremental technology is used by organisation in order to produce new product and develop it. Build Your Dream organisation can use this strategy in order to gain the competitive advantages by producing electric batteries that helps to increase the profits.

Active - This strategy is related to responds which given by organisation on various changes, existing technology, markets and customer needs. This helps to get the broad knowledge about a particular product and reduce the risk of innovative product. With the help of active strategy it generate maximum value of innovative product and portfolio. In this, BYD can analysis that there are large number of organisation who are producing batteries so, this supports to develop a unique batteries that can attracts customers.

Reactive - In this strategy, organisation bring innovation with the help of followers, focusing on operations and taking a wait for plans that helps to complete the task. By using this, BYD can produce products at lower risk and provide better quality of products.

Passive - This is not suitable for all organisation when they are going to innovate something new in market. There is need to accept the changes frequently as per customer demand. Therefore, BYD has an option to use this strategy by understanding customers demand and taste.

Social and ethical strategy

• The Social strategy in context to innovating electric batteries are as defined:

• To reduce the carbon emission errors from environment (Tajeddini and Ratten, 2017).

• To keep clean and healthy environment.

• To reduce the cost of organisation and provide suitable products to customers.

• To provide high satisfaction to customers and accept challenges effectively.

• Increase willingness to pay for helping people and improving their living standard.

• To maintain good relations between customers and organisation.

BYD is using ethical and social strategy in which needs and wants are identified by management and products are developed accordingly. Moreover, effective media channel is used by such organisation which increases awareness and make efforts to complete the goals (Wirtz and Lovelock, 2016). Moreover, organisation is following rules, legislations, values, norms and beliefs that helps to maintain the good performance and accept the challenges effectively. Take Marketing Assignment Helpfrom professional experts!

Consideration of the challenges BYD will face in future

To adopt innovation strategy and produce electrical batteries there are many challenges which can be faced by BYD organisation in future that are as defined:

Finance - This is main issue which can arise in future while producing electrical batteries and other products. This is first required for BYD organisation to adopt new technology, research & development, expanding in new market and developing new product which can be possible through only having funds. Therefore, this is important for BYD to arrange the funds for its operation and developing products in future otherwise it can creates difficulties.

Marketing strategy - This is another challenge for organisation which is required to attract the customers and sale them products and services effectively. In context to BYD there is needed to have strong marketing policy that can help to introduce from new product and services in market effectively. This can be challenge for BYD in future to understand the marketing strategy and make plans accordingly that can help to to provide information and achieve business goals.

Political- Political factors are government regulations and legislations that influences the operations of business positively and negatively. Any company that does business in the market has to perform its working within these regulations only. With respect of the company, build your own dreams, the political factors will affect the business (Wood and Jobber, 2016). For example, if the political party decrease the rates of taxes or electronics raw material which are used in manufacturing or give any kind of relaxations or subsidiaries to companies dealing with eco friendly products can help in the reduction in prices of the product. This will ultimately increases the demand in market place. Political parties will also promote such products because it is good for our environment. Hence, affecting the price, product & promotion marketing mix variables.

Cultural- Cultural factors include the taste, trends, preferences, values, ethics, customs and religions. By evaluation of above factors, business can know more about its target market and work accordingly. As in case of Build your own dreams, the company analyse the need for eco friendly auto mobile which saves energy, reduces emissions of vehicles, and improve quality of life in cities. It analyse the need and want of customer as well as of environment and build the product accordingly. The company will promote its product such that it set a need for the product such that it creates an urge to purchase in customer mind. To sell its products at a heavy volume the company needs to set its product prices accordingly. Hence, affecting the price, product & promotion marketing mix variables.

CONCLUSION

From the report it can be concluded that organisation should make strategic plans that can helps to attain the business goals. Marketing strategies are developed by marketers by identifying needs and wants of customers then it make decision to develop products accordingly. To run a business and bringing innovation there is need to have proper marketing planning and skills that can help to adopt new technology and introduce from new products. Organisation is having tangible and intangible resources which are used to run a business and to sustain in competitive market. Innovation strategies are used to develop a new product and increase brand image effectively. Moreover, ethical and social strategies are used to develop the new product and get competitive advantages by reducing cost and satisfying customers.

APPENDICES

Resource based views:

Statement of financial position  

Income statement

For more - Employee Wellbeing

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