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Strategic marketing can be used effectively in numerous corporate activities, such as production, sales, marketing, and communication. Strategic marketing aims to maximize a business's potential for growth and profit. A clean environment and zero energy emissions are necessary for today's modern corporate climate. Sustainability and cutting-edge economic models can coexist in the same organization. This study aims to learn how companies continually attempt to enhance their energy efficiency and provide a better working environment for their staff. A company's marketing strategy should be founded on ethical ideals. Analyses such as Ansoff, BCG, and the marketing mix matrix will all be covered in this study to identify the company's growth, competitive position, and potential future growth directions. Based on the company's strategic marketing position, these assessments will be based on BYD (Build Your Dream).
BYD Energy is a high-tech company that was established in 1995 and is committed to the development of new technologies as well as the improvement of people's overall quality of life. Around the world, the company is responsible for the construction of more than 30 different industrial parks in total (Lin et al., 2018). This technology's lithium-ion batteries are used in automobiles, trains, electronic devices, batteries designed to save energy, and even new forms of energy. The purpose of the organization is to develop energy solutions with zero emissions. The market value of the company is greater than RMB 100 on both the Hong Kong stock exchange and the Shenzhen stock exchange (Li, 2021). Through the construction of research and development organizations in this country, new products have been developed. Some of these new products include electronic materials as well as energy-efficient buses, lorries, and passenger automobiles (byd.com, 2022).
With the help of strategic planning, businesses can zero in on their distinct advantages, enhancing the quality of the services they offer their clients and creating additional value for those customers.
Critical company (BYD) analysis
This section will investigate the BYD energy company's mission, vision, and resource-based view.
Resource-based view
To acquire a competitive advantage, the organization uses a resource-based perspective, often known as an RBV. Proponents of RBV contend that rather than seeking new skills for each opportunity, it is more practical to use resources that already exist to take advantage of opportunities presented by the environment. The utilization of already available resources has been a major contributor to BYD's level of success.
Resource-based view
Source: (Yang, Jia and Xu, 2018)
The nature of a resource determines whether it is considered tangible or intangible. The key sources of BYD's long-term competitive advantages in the sector are the company's intellectual property, marketing strategy, and ideology. The RBV model is predicated on the idea that resources ought to be both static and variable at the same time. The heterogeneity of BYD's resources demonstrates that the corporation enjoys a distinct advantage over its competitors due to these resources. This is because companies will be unable to employ different strategies to compete successfully if they all have access to the same pool of resources. The second supposition is that it is not possible to move resources from one business to another, which is an observation that bears out in actual operation. No one can replicate BYD's products since the company protects its intellectual property and maintains exclusive ownership of its brand assets.
Mission and vision
The long-term objective of the organization is to evolve into the most technologically advanced organization in the world with the mission of minimizing its negative effects on the natural world and cutting its energy consumption. The establishment of pollution-free pathways for electric vehicles and the Skyrail system, as well as the provision of green space all around the city, is one of the primary goals of the firm, which aims to improve the quality of life for all residents of the city.
Directional and growth strategies
Understanding BYD's direction and growth strategies can be accomplished with the help of Ansoff and the BCG matrix.
Ansoff matrix
The Ansoff matrix allows businesses to determine four potential market strategies (product development, competitive advantage, market development, and diversification) that they might implement to expand their operations. It is feasible for companies to gain a competitive advantage by expanding into new markets, developing their presence in existing markets, developing new goods, and entering new markets. These are the strategies that concentrate on the existing market and aim to improve the performance of the organization by applying techniques such as enhancing the brand image, ensuring customer satisfaction, and generating value (Lu, Xia, and You, 2022). A company's goal in expanding into a new market is to increase the number of people who buy its products. If the company wants to give value to its clients, it is necessary to solve problems, re-develop, or otherwise improve the products that it provides to do so. Because of diversification, companies now can develop new items with a variety of characteristics that will appeal to a broad spectrum of customers. The current strategic methods that BYD Energy is pursuing suggest that the company is continually working to improve its existing products and is also releasing new products that will lower the amount of energy that is consumed and will eliminate carbon emissions. They have developed environmentally friendly alternatives to gas-powered automobiles, as well as batteries and other technological products. They are continuously coming up with new ideas. They employ strategies including expanding their product line, penetrating new markets, and diversifying their offerings to grow their existing business and acquire a competitive advantage in the marketplace.
Ansoff’s matrix
Source: (Stanislavscaia, 2021)
BCG Matrix
BCG Matrix stands for Boston Consulting Growth and is a tool that is used by various companies around the world to understand the company’s position (Chiu and Lin, 2019). The tools do so by analyzing a product's market share and growth rate. BCG Matrix contains four parts which are question marks, starts, dogs, and cash flow. BYD can implement the BCG Matrix to find the various flaws and advantages of its products in the current market. For example, the company’s electric car is currently not quite popular in the market however, in recent times, its demand is increasing. The four parts of the BCG Matrix are discussed below:
Components of BCG Matrix Analysis
Source: (Chiu and Lin, 2019)
Competence
The VRIO framework is a tool that is used by companies to determine whether they can survive in the highly competitive market. The framework makes the companies ask four crucial questions that mainly focus on a company’s various competencies and internal resources. The four questions asked by this tool are Question of Value, the Question of Rarity, the Question of Imitability, and the Question of Organization (Liu, 2022). The four questions of the VRIO framework have been implemented upon BYD and have been mentioned below:
Competitive Advantages
This section of the report will focus on the various competitive advantages that BYD Energy has over its competitors. The competitive advantages will be analyzed through the 4Ps of the Marketing Mix (Du and Li, 2021). The 4Ps of Marketing Mix is a model that focuses on 4 different aspects of a business which are Product, Price, Place, and Promotion. The various components of the model after applying it to BYD Energy are discussed below:
The 4Ps of Marketing Mix
Source: (Park, Nakaoka, and Chen, 2020)
The marketing mix model has been applied to BYD Energy to understand its various marketing factors. It has been observed that the company puts the majority of its focus on producing environmentally friendly products at affordable costs (Cao, Zhang, and Antony, 2018). The company has developed lots of innovative ideas that enable it to achieve its goals. The company is constantly working to manufacture low-cost products and to reach the products to a large number of customers.
The industry where BYD Energy is conducting its business operation is highly competitive as there are a lot of different companies that share the common vision of energy-saving products. Among the long list of competitors, two of the main competitors of BYD Energy that have been identified are GCL System Integration Technology and Tesla. These companies have been producing the same range of products as BYD Energy and are acting as a threat to their business operations. Here is a graph that shows the main areas of competition faced by BYD Energy.
Strategies, Competencies, and Competitive Positioning of the Organizations
The three companies selected for this comparison implement certain strategies to sustain themselves in the highly competitive market. The strategies used by each of the companies are discussed in the table below:
Currently, BYD Energy employs more than 229,000 people which is a lot more than both GCL and Tesla. The company has a large employee base and has been able to establish a b position in the market. The company’s idealogy for manufacturing eco-friendly products has helped it in achieving its current market position. BYD Energy’s vision of making eco-friendly technology has enabled them to build a strong emotional bond with the customers which has played a major part in their business operations. The company has a wide range of customer segments and it serves both the common people as well as the government (Chen, 2018). Governments of many countries have settled agreements with BYD Energy for using their energy solution technologies in their respective countries.
Customers are the main element of every business and satisfying the customers is the number one priority for every company. BYD Energy has always focused on providing innovative solutions that improve the lives of its customers. The company always makes sure that during its manufacturing processes, the environment is not at all damaged, and it uses eco-friendly materials in its products (Quan, Loon, and Sanderson, 2018).
Segmentation
STP stands for Segmentation, Targeting, and Position which is a marketing approach used by companies to identify the target market i.e. the group of customers who are most likely to use the products manufactured by the company. Currently, BYD Energy is providing services to the US, Asia, and Europe. The aim is to provide products at lower costs and do so by collaborating with larger companies for the supply of raw materials. The company identifies the target market by segmenting the customers according to their monthly income and needs. Also, the company tries to convince the customers and tries to shift them to use products that have the least impact on the environment. So far the company has been quite successful in its mission and has been able to gain a large base of customers who are concerned for the environment.
The users of the company’s products primarily include large organizations who tend to buy bulk amounts of products from them. It has been observed that the customers are buying the electronic products manufactured by the company since their concern towards environmental degradation is gradually increasing (Zhao and Yao, 2018). So, the company is currently focused on proving its products and services to these large organizations who are deciding to shift towards using eco-friendly products. Moreover, BYD Energy’s vision of manufacturing green products has also given them an advantage over its competitors and the company has been establishing a b position in the industry.
Customer Behavior and Trend Analysis
Customer Behavior Analysis is the process of understanding the various aspects that impact a customer’s decision-making towards a product. It also helps the companies to identify how the customers decide to purchase a product by keeping in mind the various crucial factors such as organization, product, and services. The marketing campaigns organized by the company are one of the most crucial steps that helps them to determine the various behavioural changes that take place in the minds of the customers. The company also has a specific vision involved in the launch of every product in the market. For example, the company’s vision of manufacturing electric vehicles is to protect the environment from the harmful gases that are emitted by fuel-based vehicles. It has been observed that the customer base of BYD Energy mainly consists of large transportation and governmental organizations that have been buying their products for a long time. However, the company has not been quite active in providing its products and services directly to the common people. The electric vehicle manufactured by the company can act as a great way to gain a b customer base of common people. The company needs to keep in mind the various important factors that enable the customers to determine whether to buy an electric vehicle or not. The factors may include battery life, servicing cost, time for charging, and distance covered after charging. So, BYD Energy needs to develop its electric vehicle by keeping in mind the mentioned factors.
Research has proved that using energy-saving products helps to maintain a healthy environment around the locality and it can help to reduce the overall pollution levels to a great extent. The people have been observing the various environmental issues that the countries have been facing due to pollution. The gases emitted by fuel-powered vehicles are highly toxic and are one of the main reasons for global warming. Substituting petrol and diesel vehicles with electric vehicles is a great way to overcome this issue. For this reason, the company has been conducting various promotional activities where awareness regarding the environmental degradation caused by vehicles is discussed (Park, Nakaoka, and Chen, 2020). Other giant companies in this field like Tesla are also spreading awareness regarding the same issue and the customers have been choosing electric vehicles over other vehicles. Since petrol and diesel are non-renewable resources, the prices of these fuels are also rapidly increasing. This can act as a great opportunity for BYD Energy to penetrate the automobile industry with their electric vehicle and give hard competition to brands like Tesla.
Since the industry where the company is conducting its business operations is highly competitive, it needs to conduct development practices continuously. One of the main fundamental values of the company includes developing zero-emission products at affordable costs. Moreover, the company also pays considerable attention to fulfilling its social responsibilities. The main motive of the company is to provide sustainable solutions for the people. These visions of the company enabled them to develop a positive reputation among the people and the company has also received numerous awards for its eco-friendly nature. This section of the report will talk about the two key areas which are strictly followed by the company.
Innovation Strategies
The innovation theory that will be used for the case of BYD Energy is DOI. Developed Diffusion of Innovation theories is a theory that was made by E.M. Rogers. The theory deals with the fact that as time progresses, a project idea archives its momentum and spreads among different people. The business strategy of BYD Energy revolves around the serious issue of increasing environmental degradation through the emission of harmful substances. The reason for the company to launch electric vehicles in the market is to reduce emissions by 100%. To achieve its goal, the company has also spent a large amount of capital on improving its research and development segment.
While executing its ideas, the company should also pay attention to the adaptability of the customers. The company needs to observe the adaptability rates of different people and accordingly, they can distinguish the customers in various segments. Moreover, the company can also implement customized marketing strategies for each of the different segments.
The group of people who are eager to try out a new product launched in the market can be described as innovators (Park, Nakaoka, and Chen, 2020). BYD Energy falls under this category since the company always looks to implement new technology in their products. The company always looks to introduce products in the market that will not only be environmentally friendly but will also ensure to make the lives of its customers easier. Other categories include laggards, early majority, and late majority. Laggards are the people who are afraid of trying out new methods and practices and tend to use the old traditional methods. Almost every person in this world hesitates to try new products and technologies. Keeping this in mind, it can be said that BYD Energy has taken a risky and bold move to manufacture eco-friendly energy solutions. The company manufactures a wide range of products which include batteries, electric vehicles, rail transit, etc. The researchers of the company work hard to develop environmentally friendly products in each of the segments.
Ethical and Social Strategies
The main aim of the company is to ensure a better life for the people. The company has observed the increasing amount of pollution taking place within the ecosystem and affecting it adversely. For this reason, BYD Energy has decided to launch a wide range of eco-friendly products that deal with the least stress on the environment. This aim of the company has helped it to develop a positive image among the people and is one of the most main reasons for the company’s success. The company has also received several awards from various magazine brands due to its vision (Liu, 2022). Moreover, the company also makes sure to follow all the international laws, regulations, and standards. During surveys, it has been found that the people working in the company are quite happy as the company ensures to maintain a healthy working environment. Also, one of the main characteristics of the company that has contributed to its success is its problem-identifying policies. The company always tends to observe the problems within a market before expanding in it. Additionally, the company also conducts training programs for its employees. Through these training programs, the company teaches its employees ethical values. This in turn helps the employees of the company to adapt to the environment and to share a common vision of environmental sustainability.
Conclusion
This report has been to understand the various marketing strategies that are used by BYD Energy. It has been found that the company strictly follows certain ethics that have helped it to achieve success in the market. One of the main aims of the company is to manufacture environmentally friendly products at an affordable rate. It has been observed that the company conducts various effective management practices that help them to follow its vision. The author has also compared the company’s market position with two of its main competitors i.e. Tesla and GCL. A lot of focus on the company’s idea of selling electric vehicles in the market has been provided. After analyzing the various market factors, it can be said that the company’s decision to launch electric vehicles in the market can prove quite beneficial in the long run. This is because a huge number of people have started to understand the importance of adapting environmental sustainability measures due to the rapid increase in pollution rates. The company needs to implement effective marketing practices to promote its electric vehicles in the market and if done properly, it can give b competition to giant brands like Tesla.
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