BYD is a Chinese electric vehicle manufacturer specializing in passenger automobiles and with

that, BYD should pursue a supply chain strategy that is in line with its overall business
objectives. To attract worldwide customers, it should implement a value-creating supply chain
and logistics management approach.
Logistics management is the process of integration and maintenance (flow and storage) of
goods in an organization whereas Supply Chain Management is the coordination and
management (movement) of supply chains of an organization.
To maintain its business more diversified and give value delivery to end-users, it should organize
its vision, mission, and corporate strategy to take competitive advantage through local sourcing
of raw materials, cultural variety, and local skills.
Supply chain - the sequence of processes involved in the production and distribution of a
commodity.
In terms of the supply chain, it must eliminate Chinese resource overexploitation methods. To
achieve long-term growth and profitability, it must design a sustainable company development
model. It should concentrate on aligning its value chain's primary and secondary activities with
value-based principles.
For example: Human resources must have a sufficient leave policy, salary, assessments,
and an overall competitive working atmosphere. It should result in a long-term, energy-
based industrial system that is sustainable.
Moreover, they should use product development to their benefit and concentrate on growing
earnings. They are a highly innovative company, and they should be applying their creativity to
create cost-effective, competitive products. They will be able to achieve the best outcomes,
revenue, management, company growth, and optimal supply chain management by
implementing this strategy.
The operations and supply chain strategy that BYD should pursue are Tactical Level, Strategies
Level, and Operational Level.
Tactical Level is to build new factories in other countries such as Australia.
Strategies Level is to make cooperation with experienced automobile companies and source
Lithium.
Operational Level is to combine with Robotics manufacturing, combination of Few Suppliers
and joint venture Sourcing Strategies.

PESTEL /PEST / STEP Analysis of BYD Company, Ltd. Case Study

PESTEL stands for – Political, Economic, Social, Technological, Environmental, and Legal
factors that impact the macro environment in which Byd's Byd operates in. Robert S. Huckman,
Alan MacCormack provides extensive information about PESTEL factors in BYD Company,
Ltd. case study.
Political Factors
- Political and Legal Structure – The political system seems stable and there is consistency in
both economic policies and foreign policies.
- Political consensus among various parties regarding taxation rate and investment policies. Over
the years the country has progressively worked to lower the entry barrier and streamline the tax
structure.

Economic Factors
- Foreign Exchange movement is also an indicator of economic stability. Byd's Byd should
closely consider the forex inflow and outflow. A number of Byd's Byd competitors have lost
money in countries such as Brazil, Argentina, and Venezuela due to volatile forex markets.
- Inflation rate is one of the key criteria to consider for Byd's Byd before entering into a new
market.

Social Factors
- Consumer buying behaviour and consumer buying process – Byd's Byd should closely follow
the dynamics of why and how the consumers are buying the products both in existing categories
and in segments that Byd's Byd wants to enter.
- Leisure activities, social attitudes & power structures in society - are needed to be analyzed by
Byd's Byd before launching any new products as they will impact the demand of the products.

Technological Factors
- Artificial intelligence and machine learning will give rise to the importance of speed over
planning. Byd's Byd needs to build strategies to operate in such an environment.
- Proliferation of mobile phones has created a generation whose primary tool of entertainment
and information consumption is mobile phones. Byd's Byd needs to adjust its marketing strategy
accordingly.

Environmental Factors
- Consumer activism is significantly impacting Byd's Byd branding, marketing and corporate
social responsibility (CSR) initiatives.
- Environmental regulations can impact the cost structure of Byd's Byd. It can further impact the
cost of doing business in certain markets.

Legal Factors
- Intellectual property rights are one area where Byd's Byd can face legal threats in some of the
markets it is operating in.
- Property rights are also an area of concern for Byd's Byd as it needs to make significant
Innovation, Labor, Manufacturing, Risk management infrastructure investment just to enter a
new market.
ALL ABOUT BYD
BYD is a major Chinese automaker based in Shenzhen, Guangdong Province. It sells
vehicles under the BYD brand. Founded in 1995, BYD started out as a battery maker and entered
the automobile business in 2003. The company has diversified into areas such as cellphone
assembly and solar cell manufacturing.
What does BYD company do?
BYD has grown to become a major manufacturer of automobiles (most notably full-electric and
hybrid cars, buses, trucks, etc.), battery-powered bicycles, forklift, solar panels and rechargeable
batteries (mobile phone batteries, electric vehicle batteries and renewable bulk storage).

Why is BYD successful?

Its creation of a Zero Emissions Energy Ecosystem – comprising affordable solar power
generation, reliable energy storage, and cutting-edge electrified transportation – has made it
an industry leader in the energy and transportation sectors. BYD is listed on the Hong Kong and
Shenzhen Stock Exchanges.

Is BYD bigger than Tesla?

“Tesla is the world's largest electric vehicle maker, delivering 308,600 electric vehicles in the
fourth quarter, up from 241,300 in Q3, 201,250 in Q2 and 184,800 in Q1. But BYD is catching
up. BYD sold 93,945 new energy vehicles in December, up 218%

The issues include broken heaters, driver's chairs that are crooked, draughty driver's cabs,
vibrating steering wheels pulling to the left or right. Keolis has been struggling with vehicle
problems since the 246 electric buses entered service in IJssel-Vecht last in December 2020, the
Dutch magazine adds.