In recent years, BYD, as a leading enterprise in the field of new energy vehicles in China, has fully demonstrated its first-mover advantage and the advantages of the whole industry chain in the market. However, with the intensification of market competition and the continuous progress of technology, BYD's first-mover advantage may be snatched, and its advantages in the whole industry chain may gradually turn into disadvantages. This article will start from the law of skyscrapers in economics, analyze BYD's strengths and weaknesses, and ** the future development direction of traditional car companies.
1. The law of skyscrapers and BYD's advantages.
There is an interesting law in economics called the law of skyscrapers, which states that when a place starts building skyscrapers, it is when the economy is overheated, and when skyscrapers are built, it is when the economy is in recession. This law has been proven in many cities and countries. And now, BYD is building its own "skyscraper", a skyscraper that sells 3 million units. This is undoubtedly a huge advantage for BYD, but it may also become its heavy burden.
Second, BYD's advantages and disadvantages.
The most complete electric vehicle industry chain.
BYD has a complete electric vehicle industry chain, from batteries, motors to vehicle manufacturing, almost all core components can be produced by themselves. This advantage of the whole industry chain makes BYD have strong competitiveness in the market. However, as other car companies follow suit and technology continues to advance, this advantage may gradually wane.
Lithium iron phosphate blade battery.
BYD's lithium iron phosphate blade batteries are widely recognized in terms of safety and low cost. However, with the rise of battery companies such as CATL, BYD's battery advantage may be gradually weakened. Other car companies have chosen to cooperate with companies such as CATL, which has also brought a lot of competitive pressure to BYD.
First-mover advantage for electric vehicles.
BYD's first-mover advantage in the field of electric vehicles is also one of the important factors in its success. In the early market, consumer awareness and acceptance of electric vehicles was relatively low, but BYD seized the market through first-mover advantage and gradually expanded its market share. However, with the intensification of market competition and the improvement of consumers' awareness of new energy vehicles, BYD's first-mover advantage may gradually weaken.
Third, the development direction of traditional car companies.
In the face of fierce competition in the new energy vehicle market and continuous technological progress, traditional car companies need to find new development directions. Here are a few strategies that traditional car companies may adopt:
Focus on building cars.
For traditional car companies, they can focus on building cars, and outsource core technologies such as batteries, vehicle intelligence, and autonomous driving to professional battery companies and technology companies. This can not only reduce costs, but also improve their core competitiveness.
Partnering with tech companies.
Traditional car companies can cooperate with technology companies to jointly develop the core technology of new energy vehicles. This method can enable traditional car companies to quickly follow up with new technologies and improve the competitiveness of their products. At the same time, it can also enable technology companies to better apply technologies in the fields of batteries, vehicle intelligence, and autonomous driving.
Launch of high-end brands.
Traditional car companies can improve their brand value and market competitiveness by launching high-end brands. In the new energy vehicle market, the market share and profit margin of high-end brands are relatively large, so the launch of high-end brands can enable traditional car companies to obtain higher profits and larger market share.
Fourth, summary. Although BYD has made remarkable achievements and first-mover advantages in the field of new energy vehicles, with the intensification of market competition and continuous progress in technology, its first-mover advantage may be snatched away, and the advantages of the whole industry chain may gradually be transformed into disadvantages. For traditional car companies, they need to find new directions to improve their core competitiveness by focusing on car manufacturing, partnering with technology companies, or launching high-end brands. At the same time, we also hope that BYD can continue to strengthen technology research and development and product quality improvement, and face future market competition.