Byd, Porter Diamond

6969 WordsJun 26, 201328 Pages
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, Phone +49 241 80 93348, Fax +49 241 80 93248 Wilhelm, Jan Chair of Organization, RWTH Aachen University, Templergraben 64, 52062 Aachen, Germany, Wagner, Wolfgang Volkswagen Corporate University, China Cuipingbeilixiqu, 16Haolou-1Danyuan, 2311; 101121 Beijing, Tongzhou District, China. 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…show more content…
(Porter, 1990) A stable and strong government is crucial in this phase, as it ensures continuity of decision making. The World Economic Forum ranks China 8th worldwide in macroeconomic stability (World Economic Forum, 2009). Unlike many western societies, whose frequent elections and wide range of varying values within the political system imply the risk of policy changes, China has but one all-embracing party, the CPC, guaranteeing a high level of stability. figure 2: comparison china / efficiency-driven economies (world economic forum, 2009) In comparison with other efficiency-driven economies, China is outperforming the average in all aspects but technological readiness and financial market sophistication. According to Porter, investment-driven economies may gain a competitive edge in industries with economies of scale, high capital costs and high labour intensity. They ought to CIAM Working Paper 2 specialize in standardized products with relatively low service requirements. The technologies used should at best be easily transferable, a wide availability of core technologies via multiple international sources being preferable. The electric mobility sector meets all of these prerequisites, so China is ready to pursue the challenge of gaining excellence in this particular industry. The following section provides an overview of selected favourable aspects of the diamond dimensions with regard to the

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