Marketing Theories for BYD’s Expansion to Northern Europe

Marketing in a Global Context
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Marketing in a Global Context
Section A
Introduction
This section focuses on four primary things, including the selected global region, Northern Europe, rough market screening, market ranking process, and fine market screening. BYD Company Limited is the multinational corporation that will be discussed throughout this report. The firm was established in 2003 and is headquartered in Xi’an, Shaanxi Province in China. In particular, its offerings are rechargeable batteries, buses, trucks, electric bicycles, cars, forklifts, plug-in hybrid, and electric vehicles. This report applies several marketing theories, namely SWOT analysis, PESTEL, SOSTAC, customer segmentation, VALS, and MOSAIC frameworks, which will facilitate BYD’s expansion to Northern Europe.
Global Region (Northern Europe)
Some of the countries in Northern Europe are Denmark, Sweden, Norway, Finland, Latvia, Lithuania, and Estonia. The three primary countries that BYD is considering to select the specific one where it should enter include Sweden, Denmark, and Finland. The table below shows population and gross domestic product (GDP) of Sweden, Denmark, and Finland based on Worldometers (Worldometers, 2023). In addition, it will be followed by a map showing the three primary nations that will be focused on throughout this paper. As can be seen from Table 1 and Figure 1, Sweden, Denmark, and Finland have a significant population and GDP. BYD should focus on the best country to enter based on various marketing theories.
Table 1
The Population and GDP of Sweden, Denmark, and Finland
CountriesPopulationGDP (2021)Sweden10,639,287$635.7 billionDenmark5,923,629$398.3 billionFinland5,547,426$297.3 billion
Figure 1
A Map of Sweden, Finland, and Denmark


Rough Market Screening
Although Sweden, Finland, and Denmark are ready for electric and plug-in hybrid vehicles, BYD should select the country with a high market potential. In that light, an APM table can significantly help to evaluate factors, such as accessibility, market size, and profitability.
Table 2
APM Table Comparing Sweden, Finland, and Denmark
CriteriaSwedenDenmarkFinlandAccessibilitySwedish market is accessible, meaning that it allows imports from companies that comply with the set regulations. In 2021, the country imported cars valued at $16.5 billion from automotive firms, such as Volkswagen, Audi, BMW, Toyota, Kia, Volvo, and Nissan (International Trade Administration, n.d.).Although Denmark is accessible, the country does not have a large potential for electric vehicles. Many people prefer to use conventional cars due to the high price of hybrid and electric cars (Pavlinek, 2022). Finland does not have strict policies when it comes to welcoming foreign investments. In particular, the projected compound annual growth rate from 2023 to 2028 is expected to increase by 12.38% (Statista.com, 2023). ProfitabilitySince the majority of people are employed and the Swedish economy is strong, BYD is likely to be profitable if it enters th...