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BYD Energy Company VRIO and Collaboration Analysis

BYD Energy Company leads the global production of rechargeable batteries such as NCM, lithium-ion, and NiMH (BYD.Com, 2020). The company owns the whole layout of the supply chain of battery packs and mineral battery cells. Their battery products are used for various purposes, including new energy vehicles, consumer electronics, and energy storage. The company has significantly cut down the cost of producing solar modules creating an equivalent in the total cost of coal-fired electricity and solar power. The aspect has increased solar power popularization and availed clean energy to the public in general. The following is a VRIO and collaboration analysis of the main factors that form the company’s strengths.

Human resource

BYD has intellectual property rights that have been bought from the owners. The company also recruits and trains highly innovative workers who are part of such intellectual resources. The expertise is applied in manufacturing, risk management, labor, and innovation (EMBAPro, 2020). The resource is valuable since it helps shape brand and future revenue. Besides, it is not rare as most companies prefer highly qualified teams. It is not hard to imitate because competing firms can apply the same strategies. It can be organized through more training after recruitment.

Market share

At the same time, the company enjoys a robust domestic market which acts as both a roadblock and a source of strength for innovation and general growth (BYD.Com, 2020). According to information concerning the company, the firm can experience continued growth in the domestic market with little or no innovation required. However, it needs to invest more in development and research to enter the global market. The growth in the domestic market is a temptation among the managers to focus on it only (BYD.Com, 2020). The resource is valuable as the company can get more revenue by making sales. It is not rare based on the ability of new company entry in the market for the same products. It is imitable, and companies can enter and initiate competition within the market. It can be organized by dominating the battery energy market and diversifying operations to the global arena. Domestically the resource can be maintained through customized services that make customers loyal and recommend more to buy the company products.

Brand and Awareness

Also, the BYD Company has strong brand awareness and brand equity. It enjoys some highly recognized product brands, especially in the local market. The aspect serves to attract more customers who seem to look for new solutions in labor, risk management, innovation, and manufacturing services from other firms (BYD.Com, 2020). The resource is highly valued based on the ability of the company to use it to win more customers, make more sales, and generate revenue. It can also help the company expand into other avenues and use the name to sell new services and products, bringing in more money for the company. It is not rare, and new companies with the same level of innovation can develop a brand (Ponnam, Sreejesh, and Balaji 2015, p. 5). Besides, it is not imitable and requires much effort and strategic management to achieve it. A brand is not attained within a day. However, it requires methodologies such as product and market development, quality services and products, and good marketing strategies to achieve it, and therefore it develops for years.

Products and services

The company has superior services and products, whose quality is excellent and serves as tangible resources. These can be used to expand its market share based on customer loyalty. With this level of quality, the company can venture into the global market. It is the largest firm for rechargeable LiFePO4 (lithium iron phosphate) batteries (BYD Energy. 2020). The resource is of great value to the company. The company’s ability to sell more of the batteries and offer services to many people generates income. It is not rare, and companies can come up with a new design of the batteries and still sell them for huge money. Additionally, the resource is not imitable. Due to innovation, the company comes up with unique and differentiated batteries that other firms cannot imitate. The organization is possible for the resource that involves maintaining quality and increasing the level of uniqueness (BYD.Com, 2020). It can also be developed to store more power and consumer loyalty.

Salient factors

Two of the most important factors include a perfect competition structure and sustainability trends in the global business. The market structure has enabled BYD to collaborate with firms such as Olectra Greentech from Mumbai, India, leading the production of electric vans and passenger vehicles in the market (Chaliawala, 2020). Additionally, the company’s production of energy storage batteries supports sustainability trends in the market of reducing fuel-dependent vehicles with little or no carbon emissions. The new strategy helps the company to create revenue from environmentally friendly automobiles.


From the analysis, the BYD Company is already a successful brand in the market. It enjoys a large domestic market and has the potential to succeed in the global industry. Its batteries are strong and of high quality, and plans of expanding in other avenues are already visible, as in the phone and automobile industries. Also, the company has strong financial stability, which can help it in future expansion plans of the business. All its resources are valuable and can be organized but not rare or non-imitable. Market share, brand, revenue, and products are not rare. Its unique batteries are not imitable, but other market players can achieve other resources.


BYD Energy. (2020). BYD Energy Storage; Renewables & Environment. [online] Available at: <> [Accessed 30 April 2020].

BYD.Com, (2020). Batteries-BYD. [online] Available at: <> [Accessed 30 April 2020].

Chaliawala, N., 2020. Olectra Greentech, BYD In Talks For Electric Passenger Vehicle Venture In India. [online] The Economic Times. Available at: <> [Accessed 2 May 2020].

EMBAPro, 2020. MBA SWOT: BYD Company, Ltd. SWOT Analysis & Matrix. [online] EMBA Pro for Executive MBA Professionals. Available at: <> [Accessed 30 April 2020].

Ponnam, A., Sreejesh, S. and Balaji, M.S., 2015. Investigating the effects of product innovation and ingredient branding strategies on the brand equity of food products. British Food Journal.


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