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Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets


In May 2006, Foxconn International Holdings first discovered a trade secret leakage to BYD Company Limited through current and former employees. Despite successful conviction of four individuals involved, prosecutors dropped all criminal charges against BYD in December 2008. Around 400 senior managers and engineers have left Foxconn for BYD since 2003, posing continuous threats of further infringement of intellectual property ("IP") rights. In response to a deep global recession since late 2008, one of Foxconn's strategies has been to increase investments in research on and production of smartphones, which maintain strong demand relative to traditional mobile phones. Because Foxconn's factories are located mainly in emerging markets with high IP risks, the success of this strategy is being threatened by ineffective IP protection. It is imperative for the company to revisit its IP management strategies, not only to protect its research and development investment but also to generate extra revenue for survival. It also has to devise an appropriate litigation strategy against BYD.

Authors :: Yahong Li, Jiangyong Lu, Zhigang Tao, Shangjin Wei

Topics :: Global Business

Tags :: Intellectual property, Manufacturing, Technology, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets" written by Yahong Li, Jiangyong Lu, Zhigang Tao, Shangjin Wei includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Byd Foxconn facing as an external strategic factors. Some of the topics covered in Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets case study are - Strategic Management Strategies, Intellectual property, Manufacturing, Technology and Global Business.


Some of the macro environment factors that can be used to understand the Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets casestudy better are - – cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , etc



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Introduction to SWOT Analysis of Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Byd Foxconn, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Byd Foxconn operates in.

According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.




SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix


SWOT analysis of Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets can be done for the following purposes –
1. Strategic planning using facts provided in Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets case study
2. Improving business portfolio management of Byd Foxconn
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Byd Foxconn




Strengths Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Byd Foxconn in Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets Harvard Business Review case study are -

High switching costs

– The high switching costs that Byd Foxconn has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.

Learning organization

- Byd Foxconn is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Byd Foxconn is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Highly skilled collaborators

– Byd Foxconn has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Superior customer experience

– The customer experience strategy of Byd Foxconn in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Ability to lead change in Global Business field

– Byd Foxconn is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Byd Foxconn in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Sustainable margins compare to other players in Global Business industry

– Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets firm has clearly differentiated products in the market place. This has enabled Byd Foxconn to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Byd Foxconn to invest into research and development (R&D) and innovation.

Cross disciplinary teams

– Horizontal connected teams at the Byd Foxconn are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.

High brand equity

– Byd Foxconn has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Byd Foxconn to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Low bargaining power of suppliers

– Suppliers of Byd Foxconn in the sector have low bargaining power. Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Byd Foxconn to manage not only supply disruptions but also source products at highly competitive prices.

Analytics focus

– Byd Foxconn is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Yahong Li, Jiangyong Lu, Zhigang Tao, Shangjin Wei can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

Training and development

– Byd Foxconn has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.

Strong track record of project management

– Byd Foxconn is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.






Weaknesses Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets are -

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Byd Foxconn is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Skills based hiring

– The stress on hiring functional specialists at Byd Foxconn has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets, is just above the industry average. Byd Foxconn needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.

Products dominated business model

– Even though Byd Foxconn has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets should strive to include more intangible value offerings along with its core products and services.

Capital Spending Reduction

– Even during the low interest decade, Byd Foxconn has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets, in the dynamic environment Byd Foxconn has struggled to respond to the nimble upstart competition. Byd Foxconn has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets, it seems that the employees of Byd Foxconn don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.

Increasing silos among functional specialists

– The organizational structure of Byd Foxconn is dominated by functional specialists. It is not different from other players in the Global Business segment. Byd Foxconn needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Byd Foxconn to focus more on services rather than just following the product oriented approach.

Aligning sales with marketing

– It come across in the case study Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets can leverage the sales team experience to cultivate customer relationships as Byd Foxconn is planning to shift buying processes online.

No frontier risks strategy

– After analyzing the HBR case study Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets, it seems that company is thinking about the frontier risks that can impact Global Business strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.

High bargaining power of channel partners

– Because of the regulatory requirements, Yahong Li, Jiangyong Lu, Zhigang Tao, Shangjin Wei suggests that, Byd Foxconn is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.




Opportunities Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The opportunities highlighted in the Harvard Business Review case study Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets are -

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Byd Foxconn to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Byd Foxconn to hire the very best people irrespective of their geographical location.

Low interest rates

– Even though inflation is raising its head in most developed economies, Byd Foxconn can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.

Loyalty marketing

– Byd Foxconn has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.

Reconfiguring business model

– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Byd Foxconn to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.

Developing new processes and practices

– Byd Foxconn can develop new processes and procedures in Global Business industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.

Learning at scale

– Online learning technologies has now opened space for Byd Foxconn to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Byd Foxconn can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Byd Foxconn can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Manufacturing automation

– Byd Foxconn can use the latest technology developments to improve its manufacturing and designing process in Global Business segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.

Leveraging digital technologies

– Byd Foxconn can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.

Building a culture of innovation

– managers at Byd Foxconn can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Global Business segment.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Byd Foxconn in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.

Changes in consumer behavior post Covid-19

– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Byd Foxconn can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Byd Foxconn can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.




Threats Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets are -

Environmental challenges

– Byd Foxconn needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Byd Foxconn can take advantage of this fund but it will also bring new competitors in the Global Business industry.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Byd Foxconn can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets .

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Byd Foxconn in the Global Business industry. The Global Business industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.

Consumer confidence and its impact on Byd Foxconn demand

– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.

Instability in the European markets

– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Byd Foxconn will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.

High level of anxiety and lack of motivation

– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Byd Foxconn needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.

Technology acceleration in Forth Industrial Revolution

– Byd Foxconn has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Byd Foxconn needs to keep up with the evolution of technology in the Global Business sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.

Backlash against dominant players

– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Byd Foxconn business can come under increasing regulations regarding data privacy, data security, etc.

Capital market disruption

– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Byd Foxconn.

Aging population

– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets, Byd Foxconn may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .

Stagnating economy with rate increase

– Byd Foxconn can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.

Shortening product life cycle

– it is one of the major threat that Byd Foxconn is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.




Weighted SWOT Analysis of Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets Template, Example


Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants. We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –

First stage for doing weighted SWOT analysis of the case study Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.

Second stage for conducting weighted SWOT analysis of the Harvard case study Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.

Third stage of constructing weighted SWOT analysis of Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Byd Foxconn needs to make to build a sustainable competitive advantage.



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