Last Episode # 176 ⚡ How To Differentiate From Your Competitor
BYD Example (Reverse Engineering Toyota)
The Chinese firm, whose name stands for “Build Your Dreams,” was founded as a battery and electronics manufacturer in 1995 and in 2002 they decided to expand into the automotive sector. They are regarded as one of the biggest manufacturers in China. It has even attracted investments from Warren Buffett (who in 2008 bought a 10% stake in the firm and upped it in August 2009). This Buffett-backed Chinese stock is up 55% in a month.
So, what does BYD do and how they have been able to grow this fast?
Reverse engineering…BYD’s cars are mostly virtually-identical copies of Toyota models, but sold at half the price. BYD has become quite a success story, becoming the world’s largest supplier of Ni-Cd batteries and the second-largest supplier of Li-Ion batteries, and they is applying its reverse engineering experience to an ever-widening array of products.
Here they reduced their cost on R&D and also testing and trying. Rather they focused on what is already innovated and proven then reverse engineered it produce at mass scale beating all the competitors who are building the original version.
Here is one of their ads:
Here is price comparison:
How service based businesses can learn from 🇨🇳 Chinese companies like BYD?
Don’t waste your time in R&D and innovation especially if you are small to mid size. Because there are proven ways which have been tested and tried by bigger players in the market. Like there are plumbing companies or Dental groups who have 30-40-50 locations. They have applied and tried a lot of things when it comes to their marketing. You can reverse engineer their most successful campaigns and create your own successful campaigns like BYD did with cars, batteries and in manufacturing.
Example if we talk about Accounting there are firms like MNP which are publicly traded. Then there are a lot of mid tier firms who are also spending a lot on marketing, which creates an opportunity for small and mid size players to try and experiment with things which are already proven to work but execute them better. Here is now BYD not only reverse engineers competitors products but become even better at fulfilling them. BYD’s excellent quality imitation cars are tied to the fact that the company has accumulated experience in strict product control from its earlier practices in batteries and the IT sector.
Here is another example: You can call 10 biggest companies in your industry and go through their sales process. Once you go through it, you can reverse engineer and make an even better sales process then they have. Also, you will know how those 10 competitors are selling their services.
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