Electric Cars Case Study

The automobile market of nowadays is changing, a tendency toward hybrid and electric cars is taking shape. This shift toward hybrid and electric vehicles is supported by all sectors public, private, industrial and academic. In this essay we will analyze the case of a leading company in producing electric vehicles; BYD. First, we will start by examining the viability of EVs as an alternative of gasoline-powered vehicles, and presenting our vision of the future of electric car market. Second, we will outline the strengths and weaknesses of BYD, both internal and external, as well as, the opportunities and threats facing the company. Third, we will explain the importance of developing the operations and supply chain strategy aligned with the …show more content…
On one hand, the BYD enjoys many strengths mainly, low cost labor, the protection and encouragement of the Chinese government, the lead in electrical batteries technology, and the strong presence in the Chinese market, and the fact that their technology is safer than their competitors’. On the other hand, it needs to work on its weaknesses and prepare to potential threats. The fact that production relies mainly on low cost human labor, because there is major technological break-through that may give birth to the industrial revolution 4.0, something that will make it even cheaper and more efficient than using low cost labor. The second weakness is the operations and supply chain strategy, because it is not aligned with the business strategy, therefor it will be unable to reply when there will be an exponential growth in demand. There are many opportunities present for BYD especially in the Chinese market, such as; the public …show more content…
The risk is high especially that BYD’s competitors have the capacity to produce millions of cars a year while BYD is only producing around 50000 vehicles. Since, the company cannot invest billions in infrastructure to have alike production capacity and little return on investment in the short term. We concluded that the only practical solution is having a scalable operations and supply chain strategy that is possible to reproduce whenever needed. The BYD must have as a mission to stay as the leader in EV’s market. It will have to set as objectives; to secure the Chinese market, make the operations and supply chain strategy scalable, prepare the shift from relying on human labor to the industry 4.0, and invest more in research to be able to decrease the cost, increase the mileage range, and reduce the charging