Part 3/7:
The Complexity of Supply Chain Management
The multifarious nature of BYD's product range exacerbates supply chain complexities. Each vehicle variant requires unique components and manufacturing processes, which in turn affects economies of scale. The speaker likens this situation to a hypothetical scenario where a tech giant like Apple produces numerous models of the iPhone, fragmented and inefficient, which could dilute brand identity and operational efficiency.
In contrast, a simplified product line would allow BYD to benefit from bulk parts ordering and reduced production costs. This logically leads to the conclusion that a focused strategy with fewer models could significantly enhance both customer experience and profitability.