Competitive Advantage1 book · 2 highlights

Patent Boundary as Innovation Map

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Evidence

  1. “Fifth, BYD achieved the peak of "Shanzhai prowess." The "Shanzhai path" can be said to have been taken by every domestic car brand, but BYD traveled it most successfully. The popular BYD F3, upon its release, faced criticism for its "obvious Shanzhai traces." BYD F3's parts could even be used interchangeably with those of the Toyota Corolla, to the extent that someone could remove BYD’s logo and replace it with a Corolla’s logo. Regarding this, Wang Chuanfu did not shy away, but rather described such imitation as "standing on the shoulders of giants." He stated, "We indeed referred to some excellent foreign brands, using their non-patented technologies and excluded the patented ones. The F3 sells so well because it is well-designed." Wang Chuanfu applied his "human wave tactic" and "Shanzhai tactic" from battery production to car manufacturing, which, using China's plentiful and cheap labor resources, greatly reduced production costs and thus strengthened his market competitiveness. From batteries to mobile phones to automobiles, Wang Chuanfu has always faced pressure. Nevertheless, he "persistently went his own way," even the electric car project, which came under criticism from top global investment banks, was pushed forward by his confidence and passion. His personality and experience have made him a dominant figure within the company. He once said, "I believe in this company, and I can't leave; I must be the one to manage it... Our company has only one voice." But even as a dominant figure, Wang Chuanfu is known for recognizing and utilizing talents. Many individuals, like Wang Chuanfu, refused to settle for the status quo and were recruited under his command, becoming key pillars in BYD's development, and Wang Chuanfu has generously rewarded them.”

  2. “In fact, from a simple fact, we can glimpse the secret of its success—last year alone BYD applied for multiple patents. BYD people understand that technology is essential for development. Starting from manufacturing mobile phone batteries, BYD became the world’s number one “Lithium Battery King” in just a few years.”

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