The Worldwide Car Industry Has Had Few New Entrants in the Past

question 24

Multiple Choice

The worldwide car industry has had few new entrants in the past couple of decades due to very large entry barriers.How is BYD getting around these barriers?

• A) In electric vehicles, the design is simpler than gas engines.
• B) BYD started as a battery company and has strengths there.
• C) BYD started by selling in emerging markets before developed ones.
• D) All of these.

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Definitions:

Escalation Heuristic

A cognitive bias or decision-making process where individuals increase their commitment to a previously taken course of action beyond the level that is justified by the current situation.

Satisficing Heuristic

A decision-making strategy that involves searching through the available alternatives until an acceptability threshold is met, rather than seeking the best possible solution.

Design Thinking

An iterative process in solving problems creatively and innovatively by understanding the human needs involved, re-framing the problem in human-centric ways, and adopting a hands-on approach in prototyping and testing.

Problem Solving

The process of identifying a problem, devising alternatives to solve it, and implementing a solution.