Research On The Competitive Strategy Of New Energy Vehicles Of BYD Company

In recent years,with the environmental pollution,the gradual depletion of oil resources,traffic congestion and other problems,the traditional automobile industry has been limited.New energy vehicles are popular all over the world because of the advantages of clean energy as power and less exhaust pollution.China has issued a series of laws and regulations to support the development of new energy industry.The research subject of this paper is BYD Company.Lithium battery technology has strong competitiveness in the world,and new energy vehicle research and development technology also has unique advantages.With the rapid development of new energy vehicle industry,BYD Company is also facing a series of challenges in technology,cost and other aspect.Based on the above background,this paper will study the competitive strategy of new energy vehicles of BYD Company,in order to draw up a suitable competitive strategy for new energy vehicles of BYD Company.Firstly,this paper briefly introduces the dynamic competition theory,resource-based view theory,core competitiveness theory and Porter’s competition theory,and introduces the research status of competitive strategy theory and new energy vehicles at home and abroad;and then analyzes the internal and external environment of the company,obtains the external environment that affects the competition of new energy vehicles through PEST analysis and EFE matrix analysis,and obtains IFE matrix through resource analysis and capability analysis,so as to obtain the internal factors that affect the competition of new energy vehicles.Secondly,according to SWOT analysis,this paper lists the company’s advantages,disadvantages,opportunities and threats in the competition of new energy vehicle industry,and obtains the most suitable competitive strategy for BYD Company’s new energy vehicle development is cost leadership strategy through QSPM matrix in a quantitative way,and gives specific development opinions and suggestions.This paper finds that: in the external environment of BYD,the government’s policy support for new energy vehicles,the steady development of China’s economy,the increase of residents’ income,the state’s support for independent brands,the increase of population,and green development have all created a good environment for BYD’s new energy vehicles in the competition,At the same time,we should also realize that BYD Company is also facing various threats,such as the rapid development of other enterprises in the same industry,potential entrants,high domestic production standards for new energy vehicles,low market acceptance,and the threat of traditional vehicles as substitutes.In the internal environment,the enterprise has obvious advantages in staff Division,cost control ability,product types,battery technology,etc.,but imitative innovation,sub network sales mode,brand influence and other aspects are not conducive to BYD’s new energy vehicles to win in the competition.The innovation of this paper is as follows.First,it has developed a cost leading competitive strategy for the development of BYD’s new energy vehicles.Taking advantage of the company’s existing battery technology,rich product variety and other advantages in the development of new energy vehicles,the opportunities such as policy support and green development concept are obviously greater than the threats and disadvantages,and actively adopting the cost leadership strategy to gain competitive advantage;the second is to put forward the specific implementation plan of the implementation of the cost leadership strategy,specifically from reducing the product cost,service cost,channel cost,technology cost four aspects to implement the cost leadership strategy,and Then,it puts forward the safeguard measures of competitive strategy from the aspects of strengthening cost control,strengthening human resource construction,improving innovation ability and carrying out strategic cooperation.