Comparative Analysis of Foreign Market Entry Strategies: A Case Study of BYD.

This thesis examines the internationalization processes of one of the main Chinese electric vehicles manufacturer BYD through the prism of the comparative analysis of its foreign market entry strategies in the United States, Latin America, and Europe. Based on three important theoretical frameworks, including Transaction Cost Theory (TCT), Network Theory, and the Uppsala Model, the study investigates the influence of institutional, cultural, and economic environments on strategic choices of BYD. BYD in the U.S. findings show that the company exercises a careful-low commitment approach because of high levels of political and regulatory risks, which is in line with TCT. In Latin America, relationship-based entry modes explain why it has been successful, which is best described by Network Theory. Europe has a slow and experiential process that is in line with Uppsala Model. The article highlights the strategic flexibility and contextual intelligence significance to the emerging market multinational enterprises (EMNEs). It advances the theory of international business by arguing the use of a multi-theoretical prism and provides managerial and policymaker implications. On the whole, the case of BYD demonstrates how complex and adaptive EMNEs have to be in order to operate successfully in various global markets with different institutional environments.