Byd, Porter Diamond
National Competitive Advantage of China in Electric Mobility: The Case of BYD
Corresponding Author: Kasperk, Garnet Center of International Automobile Management, RWTH Aachen University Templergraben 64, 52062 Aachen, Germany, gk@im.rwth-aachen.de Phone +49 241 80 93348, Fax +49 241 80 93248 Wilhelm, Jan Chair of Organization, RWTH Aachen University, Templergraben 64, 52062 Aachen, Germany, jw@im.rwth-aachen.de Wagner, Wolfgang Volkswagen Corporate University, China Cuipingbeilixiqu, 16Haolou-1Danyuan, 2311; 101121 Beijing, Tongzhou District, China. wagnerclean@gmail.com
Abstract Whereas in Europe, national activities to drive e-mobility forward still have to be coordinated at EU level, Chinese leaders have adopted a plan aimed at turning the country into one of the leading producers of hybrid and all-electric vehicles within three years, and making it the world leader in electric cars and busses. This paper presents the case of the Chinese company BYD („Build Your Dreams“), that began selling a plug-in electric car in China, at least a year ahead of similar efforts in the U.S. and Japan. In a Case Study setting, it addresses BYD’s strategic approach of consequently exploiting locational advantages, the importance of a favorable national home base, and the strategic implications for both western and Chinese companies aiming at positioning themselves in the market for e-mobility. Keywords: Porter’s diamond; BYD; e-mobility; National competitive advantage; China; Automobile industry
1. Introduction China is now the biggest automotive market in the world. Within only 10 years, all relevant car producers have established joint venture companies with mostly state-owned Chinese companies. In 2009, 8.3 million passenger vehicles were manufactured in China, surpassing the U.S. as the second largest automotive producing country. The growth process – driven by domestic and foreign firms as well – has been strongly supported by a focussed government strategy. With
Corresponding Author: Kasperk, Garnet Center of International Automobile Management, RWTH Aachen University Templergraben 64, 52062 Aachen, Germany, gk@im.rwth-aachen.de Phone +49 241 80 93348, Fax +49 241 80 93248 Wilhelm, Jan Chair of Organization, RWTH Aachen University, Templergraben 64, 52062 Aachen, Germany, jw@im.rwth-aachen.de Wagner, Wolfgang Volkswagen Corporate University, China Cuipingbeilixiqu, 16Haolou-1Danyuan, 2311; 101121 Beijing, Tongzhou District, China. wagnerclean@gmail.com
Abstract Whereas in Europe, national activities to drive e-mobility forward still have to be coordinated at EU level, Chinese leaders have adopted a plan aimed at turning the country into one of the leading producers of hybrid and all-electric vehicles within three years, and making it the world leader in electric cars and busses. This paper presents the case of the Chinese company BYD („Build Your Dreams“), that began selling a plug-in electric car in China, at least a year ahead of similar efforts in the U.S. and Japan. In a Case Study setting, it addresses BYD’s strategic approach of consequently exploiting locational advantages, the importance of a favorable national home base, and the strategic implications for both western and Chinese companies aiming at positioning themselves in the market for e-mobility. Keywords: Porter’s diamond; BYD; e-mobility; National competitive advantage; China; Automobile industry
1. Introduction China is now the biggest automotive market in the world. Within only 10 years, all relevant car producers have established joint venture companies with mostly state-owned Chinese companies. In 2009, 8.3 million passenger vehicles were manufactured in China, surpassing the U.S. as the second largest automotive producing country. The growth process – driven by domestic and foreign firms as well – has been strongly supported by a focussed government strategy. With
References: 17 Wang, H.: Betting on Chinese Electronic Cars? – Analysing BYD´s Innovation Capability (2009): 17th Gerpisa International Colloqium Sustainable development in the automobile industry: changing landscapes and actors, Paris 17-19 June