Strategic Synergy between Financial Leverage and Technological Innovation: Analysing BYD's Competitive Edge in the Global EV Market: A Mixed-Methods Study Integrating Porter's Five Forces Analysis with a Financial Strategy Matrix (2018--2024)
Year: 2025
Type: article
Abstract: Driven by the global carbon neutrality goal, the new energy vehicle industry is experiencing rapid growth. As a leading enterprise in this field, BYD's financial strategy offers valuable insights into enhancing competitiveness. By triangulating data from BYD's 2022 ESG report and patent databases, this study adopts a mixed-methods approach to analyse BYD's financial strategy, utilizing public financial reports, industry reports, and relevant literature. Through the application of financial strategy and Porter's five forces model, this study identifies both the strengths and the weaknesses of BYD's approach. The findings reveal that BYD has effectively boosted its competitiveness by focusing on technological investment and implementing diversified financing strategies. However, the study also highlights the need for BYD to improve cost control and optimize its capital structure. The results of this research provide important reference for other enterprises in the new energy vehicle industry, guiding them in formulating more effective financial strategies to increase their competitiveness.
Source: Financial economics research.
Authors: Lin Sun, Qiyu Yang
Institutions: Suan Sunandha Rajabhat University, Xiamen University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
Funder: Chinese University of Hong Kong
OpenAlex ID: W4409851976