Corporate Strategy of Baidu, Alibaba, Tencent for Electric Vehicle (EV) Business
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At the sales volume for Electric Vehicle (EV) and Plug-in Hybrid EV (PHEV) since 2011, China became one of leading countries globally. Chinese government began to take more concern about the air pollution issue caused by car rather than automobile sales volume increase. Currently the EV business is considered as a symbol of automobile industry innovation, so Chinese government has allowed various types of local startups to enter the EV business. In particular, Chinese government intends to take a global leadership for EV business model by using its huge domestic market. So the appearance of Baidu, Alibaba, Tencent at the EV business is very significant because they have shown excellent performances as online platforms. In order to access the corporate strategy of Baidu, Alibaba, Tencent for EV business, this study reviewed EV supply and demand condition of China. In result, Baidu, Alibaba and Tencent started the EV business to diversify the existing key business through the artificial intelligence or vehicle operating system. In order to keep the strategic flexibility in the automobile industry paradigm shift, three firms preferred the strategic alliances to the acquisitions in doing the EV business.
Abstract
At the sales volume for Electric Vehicle (EV) and Plug-in Hybrid EV (PHEV) since 2011, China became one of leading countries globally. Chinese government began to take more concern about the air pollution issue caused by car rather than automobile sales volume increase. Currently the EV business is considered as a symbol of automobile industry innovation, so Chinese government has allowed various types of local startups to enter the EV business. In particular, Chinese government intends to take a global leadership for EV business model by using its huge domestic market. So the appearance of Baidu, Alibaba, Tencent at the EV business is very significant because they have shown excellent performances as online platforms. In order to access the corporate strategy of Baidu, Alibaba, Tencent for EV business, this study reviewed EV supply and demand condition of China. In result, Baidu, Alibaba and Tencent started the EV business to diversify the existing key business through the artificial intelligence or vehicle operating system. In order to keep the strategic flexibility in the automobile industry paradigm shift, three firms preferred the strategic alliances to the acquisitions in doing the EV business.
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