Group Three
Report Proposal
BYD Company Limited
Prepared by
Guokai Xu (41415221)
Huan Zhang (41534158)ultimateaerott
Yiting Bao (41354176)
Yingying Han (41116240)
Vaidya Panch (41259653)

This report is trying to analyse BYD Company’s issues and gaps and recommend appropr
马自达配件iate strategies. It consists of four parts. The first part is the introduction of BYD, followed by detailed background. Then the rationale of choosing BYD is demonstrated. After that, main issues and gaps are identified and suggested strategies are given.
The company selected is BYD Company Limited, a South-China based company and also a public company listed on the Stock Exchange of Hong Kong. BYD’s is involved in three main segments, namely the automobile segment, the mobile handset component department and the rechargeable battery and other products segment. This paper however, will emphasise on the automobile segment which represents more than 50% of the total turnover of the group.
BYD is registered in P.R. China, and has been floated on the Stock Exchange of Hong Kong since 31st July 2002. The company was previously an IT company with mobile handsets and components being its main products. It later, entered the automobile industry by acquiring Tsin-chuan Auto Co. Ltd in 2003. The initial few years were marked by rapid growth of the company, which also led to a steep rise in share prices.
The rationale behind choosing BYD as our target company is, the rapid growth of the company which attracted attention from all around the world including the famous investor Warren Buffett who again demonstrated his exceptional insight. Moreover, the company has put in significant efforts in relation to the application of clean energy, including the production of electric automobiles. However, we have observed that the company is facing some problems at the moment as the rate of growth has reduced significantly compared to the earlier years. We aim at detecting the problems by analysing the key internal and external factors, and recommending some strategies based on the issues raised.
BYD faces three main issues, the first matter of concern being its sales target poorly matched. BYD's internal sales target for year 2010 was 1 million units (publicly announced 800,000 units). Yet over the first seven months of this year, the company only met less than one third of its internal sales target. It had slashed its full-year sales target in 2010 to 600,000 units at August 4th. The second issue is the alarming expansion problem for factory capacity. BYD's expansion plan is facing fund raising delay and properqichewang
ty regulation issues. The third issue is the increasing dealer pullouts. Increasing dealer pullouts in cities such as Beijing, Southwest China's Sichuan Province and East China's Zhejiang Province were reported, including BYD's flagship dealer in Chengdu, the capital of Sichuan.
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雪弗兰科鲁兹汽车报价Furthermore, the gaps identified are demonstrated in external and internal perspectives. Regarding external gaps, remote environment versus existing strategy and industry environment versus existing strategy are our major concerns. In relation to internal gaps, capabilities versus existing strategy and key stakeholders versus existing strategy are significant. Some recommendations therefore will be generated based on these gaps identified.