Strategic Internationalization of BYD: A Case Study on Entry into the German EV Market Using the Eclectic Paradigm Framework

This report provides a comprehensive analysis of BYD's internationalization strategy, focusing on its entry into the German electric vehicle (EV) market. BYD, a leading Chinese multinational in renewable energy and electric vehicles, is strategically positioned to leverage its technological expertise, particularly in lithium iron phosphate battery technology, to expand globally. Utilizing the Eclectic Paradigm (OLI) framework, the report examines Germany’s suitability as a target market based on factors like market size, infrastructure, regulatory environment, and government incentives. It highlights the company's ownership advantages, including advanced battery technology and competitive positioning within the EV sector. The analysis concludes that a wholly-owned subsidiary model offers the most effective entry mode, ensuring BYD's competitive edge through control over intellectual property and rapid market responsiveness. Recommendations for risk mitigation in light of Germany's regulatory and geopolitical landscape are also provided, aligning with BYD's objectives for sustained international growth.