Strategic Analysis for International Expansion of BYD Co Ltd

The module assessment comprises of an INDIVIDUAL research based assignment that requires you to write an essay that represents 100% of the module mark. You are required to produce one word-processed report covering all three parts of the assessment.  

BYD Co Ltd is a manufacturer of automobiles, battery-powered bicycles, buses, forklifts, solar panels, rechargeable batteries, trucks, etc. The company was founded in 1995 and its corporate headquarters is in Shenzhen, China. BYD is China’s largest electric carmaker and the second largest in the world after Tesla. BYD produces plug-in hybrids and battery electric (all-electric) cars, whereas Tesla sticks to battery-electric cars. With the growing demand for electric cars around the world, BYD is keen on international expansion. To start with, the company now needs to make a decision about choosing ‘one’ from three countries that has the highest potential for success. The three countries are UK, India and Argentina. Given the limited financial resources, only one of these countries are to be targeted. The choice is up to BYD Co Ltd. You are employed by a consulting company and your company has been approached by BYD Co Ltd seeking advice for making the above decision.  Now, you are required to conduct a research-based strategic analysis addressing the following tasks. 

Applying the CAGE framework, identify the differences or distances between the home and each of the potential host countries, and brief implications of those differences or distances, for crafting international strategies. 

Using the triple AAA framework, identify what should be the relatively most important aspect (Arbitrage, Adaptability or Aggregation) to focus on for the firm to create value in the chosen host country to start with. Briefly reflect on how this aspect may shift over time as the firm grows in the chosen country. (40 marks, 1000 words maximum)

Briefly discuss TWO key challenges identified in your analyses above (Part 1 and Part 2) that should be taken into account before starting operations in the chosen country. (10 marks, 250 words maximum)