1

Do you think electric cars may become a viable alternative to gasoline

powered vehicles? What is the future of the electric car? Explain your
answers.

Do you think electric cars may become a viable alternative to gasoline

powered vehicles?

Electric cars are a good alternative to gasoline-powered vehicles, but

in terms of environmental impact, they aren't the best choice for people who
like to drive their cars. In the past, electric cars have been shown to be very
durable and easy to fix. However, there are problems with both cars. The only
thing that's bad about electric cars is that they're expensive to buy. Also, the
return of nuclear power is impossible to predict. That'd be awful for the
environment, wouldn't it? There is a lot of toxic trash that is released when you
constantly switch out batteries. The environmental benefits of electric vehicles
could be used as a cause against their growing availability. That being said, it
will be some time before electric automobiles can compete with
gasoline-powered vehicles in terms of performance and design.

What is the future of the electric car?

We all know that China is a great innovator. They can produce goods
that aren’t their inventions. Through hard work and skills, BYD produces
electric cars that can compete with Tesla. According to an article by Ms.
Evelyn Cheng, BYD is one of the two great market dealers in China so far,
along with Tesla in 2021. BYD electric cars have a bright future. It's because
electric cars have been shown to be more efficient in big cities. In addition,
there's a chance that the cost of an electric car will keep going down and
become more like its gasoline equivalent, but they're still more expensive
than gasoline-powered cars.
 2

What are the internal strengths and weaknesses of BYD along with the
external, opportunities and threats (SWOT analysis)?

Strength

● A spirit of innovation and a creative management style that pays

attention to detail Competence in battery manufacture that can be
applied to motors Positioned in China's fastest growing automotive
market
● With the increased competition, no "legacy fees" have been detected.
● In a booming market, positioned as a "green commercial venture"
● Berkshire Hathaway's financial backing
● Massive government support for the employer and business

Weakness

● Outside of China, a fantastically small firm in an industry with massive

economies of scale has a vulnerable brand reputation.
● In the automobile industry, there isn't much fun.
● The popularity of electric automobiles will determine the strategy's
success.

Opportunities

● Business Models Based on E-Commerce and Social Media

● Increasing Standardization
● Consumer Preferences and Market Size are Growing
● Access to International Talent in Global Market
● Rising oil price

Threats

● New car sales are being held back by the global economic recession.
 3

● Fierce competition
● Technology and patent war

Given a business strategy of being the word leader in manufacturing

electric cars with innovative technology, what operations and supply chain
strategy do you think BYD should pursue? Identify what operations and supply
chain should do to help BYD compete including a mission, objectives,
distinctive competence and key decisions.

OPERATIONS STRATEGY

The following are the operations strategies BYD of China should pursue:

● Apply manufacturing and supply chain strategy in order to attain

target of high-volume production.
● Putting the position of the manufacturing plant strategy compared with
shipping cost into consideration.
● Improve the implementation of robotics in the system of production for
plants with high cost of labor.

Supply chain Strategy:

● BYD should pursue a supply chain strategy that is consistent with the
business strategy. They should take advantage of product design and
focus on increasing profits because they are a very innovative
company.
● BYD should collaborate with higher automaker in red region.
● BYD should use the footprint strategy to get closer to the customers
which gives focus in top potential countries and closeness of resources
considering tax strategy in the country.
● BYD should leverage sales to APAC (Asia-Pacific) considering number
of populations, bigger market area, number of car ownership.
 4

MISSION

● To change the world by making individuals less dependent on fuels

that are based on carbon through the development and
advancement of battery and electric vehicle technology.

Objective:

● BYD objective is to be the world leading company in EV Market

DISTINCTIVE COMPETENCE

● In order for BYD to gain a distinctive competence among its

competitors, it should increase its production of electronic vehicle
automobiles with innovative technology and safety standard. Without
doing so, the electronic vehicles of BYD would be indifferent from those
of other similar manufacturing companies.

Key Decisions:

● This would involve scalable systems and techniques for high-volume

production. To enable business development, capacity would have to
 5

be controlled and located. Short supply chains with local providers can
be required. The issues facing BYD of China’s operations and supply
chain strategy are what we will fix initially

What recommendations would you make for the business as a whole to

overcome its weaknesses and threats and then capitalize on its strengths and
opportunities?

How to overcome threats and weaknesses:

New car sales are being held back by the global economic recession.

1. Through the help of the Government where the Governments encourage

car purchases. “Cash-for-clunkers” programs where governments encourage
the purchase of a new vehicle to replace old energy-inefficient vehicles.

2. Good business forecasting to produce effective planning strategies.

3. Know company's priorities: financial stability, plan for recovery, employee’s

health, become a part of the trend.

Fierce competition

1.Implement a quality assurance Program to build a good reputation so that

the company can become a respectable and a sustainable brand that
everyone would go to regardless of what other competitions.
 6

2. Train the employees to focus on quality, not quantity to ensure quality

service and maximize costumer service experience. By doing so, we will avoid
the risk of declining sales due to high-pressure sales tactics that customers
don’t appreciate.)

Technology and patent war

(In new technology or innovations getting patented is a necessary protection

against imitators so that out technology is protected from being stolen.)

1. Gathering only the most brilliant and trust worthy employees to handle the
new technology invented.

2. Be the first to apply for the patent for every new technology to ensure that
the company's inventions are not imitated and that company's invention are
not similar to others patented inventions.

3. Invest on Research and development department of the company.

Capitalize on its strengths and opportunities

The Chinese company, BYD has some of strength, weakness,

opportunity and threats. As a recommendation to the business to overcome
its weaknesses and threats and then capitalize on its strengths and
opportunities they must focus to their goals or objectives. The company must
strengthen their strength and opportunities to maintain and level up their
position. The company must analyze and sort out any incoming threats to find
a solution and focus on their stability by focusing in their strength and use any
possible way that may help the business to seek out new opportunities that
can help the business to grow.
 7

References:

Electric cars viable alternative to gasoline powered vehicles

https://www.coursehero.com/file/46372926/MD1Proj-Silva-Fdocx/

Future of electric cars

https://www.google.com/amp/s/www.cnbc.com/amp/2022/01/14/heres-th
e-full-list-of-the-best-selling-electric-cars-in-china-for-2021.html

SWOT ANALYSIS

https://www.researchandmarkets.com/reports/1315246/byd_co_ltd_1211_fin
ancial_and_strategic_swot
 8

https://study.com/academy/answer/what-are-the-internal-strengths-and-we
aknesses-of-byd-along-with-the-external-opportunities-and-threats-swot-anal
ysis.html

Operation Management

https://www.scribd.com/presentation/525841302/BYD-of-China-Operation-M
anagement