SWOT Analysis is a strategic planning method used to evaluate the strengths, weaknesses, opportunities, and threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective.
BYD is one of the world’s largest battery manufacturers. BYD Company was founded 1995 and was listed at Hong Kong in 1997. BYD enter into automobile industry in 2003.
This essay aims at carry out an analysis of BYD using SWOT and preparing a brief strategic plan for the short and longer term future of the company.
In the part 1 of the easy is the SWOT analysis of BYD. In the second part of essay is the brief strategic plan for the short and longer term future of the company.
SWOT analysis of BYD.
1. The strengths and opportunities of BYD
Because BYD is one of the world’s largest battery manufacturers, it has the technology of the battery industry. As the increase of global oil price and decrease of oil, Hybrid Electrical Vehicle will become more and more popular in the Automobile industry (sina.com, 2008). Besides, the raising of effluent standard, also become an opportunity of Hybrid Electrical Vehicle. It is an opportunity of BYD. The battery technology will become the strength of BYD. BYD can use the battery technology on the Hybrid Electrical Vehicle industry. Actually, BYD has used the battery technology on the Hybrid Electrical Vehicle manufacturing. The BYD F3 DM (the first Hybrid Electrical Vehicle of BYD) has appeared on December 15th 2008. (Auto.163, 2008)
December 15th 2008, BYD announced the world's first dual-mode electric vehicle F3DM for sale, and received support for government procurement (sina.com, 2008). It is an opportunity of BYD from government. Because BYD is good at cost control (Chai.WJ, 2008), the car which is made by BYD is not very expensive for consumer as the same level car which is made by other manufacturers (Chen. M, Zhang. Q and Tang. XY, 2009). As government support, this strength will more obvious.
The ample financial situation is also strength of BYD. September 26, 2008, BYD shares of stock increase nearly four-fold from 8.57 Hong Kong dollars, to the date of announcement, the stock for 41.65 Hong Kong dollars (Wang. Z, 2009). To research and development the Hybrid Electrical Vehicle, enough fund is a necessary factor. In the financial situation sides, BYD has enough recourse from stock. Besides, the battery business has founded a good base in the financial situation side. The beteiligung of Buffett also give BYD an opportunity in the financial situation side.
The human recourse is also the strength of BYD. Since the BYD set up, Wang Chuanfu (the president and founder of BYD) paid much attention on the human recourse. Besides, Wang Chuanfu use the advantage of human recourse, create the “human+tools=robot arms” mode (let works use the tools which is accurate and simple to replace the robot arm to cut the cut the cost from the expensive equipment) (Chen. M, Zhang. Q and Tang. XY, 2009). China is a populous nation; this is an opportunity for BYD.
In conclusion, the strengths and opportunities of BYD can be concluded in a table: strengths| opportunities|
1. The technology of electricity, the inherent advantage of Hybrid Electrical Vehicle manufacture| 1. The increase of global oil price and decrease of oil lead the increase of demand of Hybrid Electrical Vehicle| 2. The cost control leads the low price of product | 2. The support from government| 3. The ample financial situation| 3. The beteiligung of Buffett| 4. The advantage of human recourse| 4. The ample labour market of China|