The following report describes about Hyundai motor’s international strategy from its creation to current period of time. It was firstly produced in South Korea which is its home country and this report describes its host country India. Indian economy is changing day by day. There are so many in India by the discoveries and invention in so many fields that is the major part of its transformation. The marketing strategy in India is developing nowadays. This report maps out the whole present scenario of Hyundai motors. The main purpose of Hyundai motors is to provide comfort to their customers and it also understands the needs and satisfaction to the customers. HYUNDAI MOTOR INDIA LTD. can share its market share in “automobile industry” emphasis on marketing.
In 1968, the company produced its first model which was released with Ford Motor Company. In 1975 the first Korean car released. In 1984, Hyundai exported the Pony to Canada. In 1985, the one million Hyundai cars were built. In 1986, Hyundai sold so many cars to United States. In 1988, the organisation produced the number of models by its own technology and it started the first new mid size car Sonata. The Hyundai automobiles cross the four million mark in 1990. In 1991, the company succeeded in the production of four cylinders Alpha and its own transmission. In 1996, Hyundai Motor India limited established production plant in Irungattukottai near Chennai.
TABLE OF CONTENTS
S.NoTopic 1. Introduction(Industrial Background) 2. Introduction to the problem
Introduction to the Topic
Objective of the Study
Sub objectives of the Study
Purpose and Scope of the Study 3. 1. Products and services offered by company 4. Body/Discussion
Be able to apply the following theoretical framework to evaluate Organisation Strategies
2.1 SWOT Analysis
2.2 Porters five forces
2.3 international Strategies
2.4 CAGE Framework
5. Findings 6. Conclusions and Recommendations 7. References
CHAPTER – 1
INTRODUCTION (INDUSTRIAL BACKGROUND)
HYNDAI MOTORS: COMPANY HISTORY
Hyundai motor company was produced in South Korea by Chung Ju-Yung in 1967. It is best known for automobile manufacturer and Hyundai Industries world’s shipbuilders. This is one of the famous company in all over the world because it is strongly present in China’s market. It is the sixth highest automotive brand reputation in the world. Chung was the CEO and he controls the company until the end of his life.
Its annual cost is 1.6 million. In 193 companies the Hyundai vehicles are sold through 5000 showrooms. This organisation builds so many products such as Automobiles, commercial vehicles, engines. In 2011, Hyundai Motor Company’s sales were 73.13 billion dollars and it had 5.2 billion sales in South Korea.
Hyundai motor organisation made GM, Volkswagen, and Toyota. Thomas Burkle who was the head of the company worked for BMW and designed BMW 3 and 6 series. In 1988, Hyundai Motor Company produced flexible-fuel vehicles (FFVs). From 1992 to 1993, it had so many FFVs. At the end of the year 1992, Hyundai Motors planned six electric vehicles. The company also designed “parallel” shape design which was used in ICE or electric motor. In March 2014, it becomes globalised including both Hyundai and Kia motor’s sales.
INTRODUCTION TO THE TOPIC
Nowadays, Technology is growing day by day. Without technology we never imagine our lives. Technology is everywhere such as in industries, in home and so on. In today’s era mostly people like to do robotic technology because it is much faster and people can do their work quickly as they want.
First of all if we talk about an organisation for examples Hyundai Motors this company made so many cars and with the help of machines it will produce so many other cars, hybrids. It is also one of the biggest organisations in auto-mobile industry. There are so many changes in automobile industries occurring day by day. First and foremost, only those industries will succeed who understand customer’s needs and find the solutions of problems.
Every organisation has own different Business rules. Previously, understand the customers need. Secondly, capture the vision and see what happened in the environment. Thirdly, communicate about mission and vision. Lastly, if it fulfils all customers needs then build them. This is one of the perfect ways to gain marketing strategy.
OBJECTIVES OF THE STUDY
Nowadays, competition is very tough among all the companies or organisations. Most of the organisations put money into some new technology so that they can easily maintain the quality of their products and it also helps them to produce some new products which enhance the company’s standard. The main thing is that HYUNDAI MOTOR COMPANY is concentrate to achieve its objective by expand its sales and produced new cars. Its competitive advantage is its important quality For example its main competitors are MARUTI SUZUKI, TATA etc.
SUB-OBJECTIVES OF THE STUDY
To establish the capacity to develop into something in the future or prospective of the customers.
To recognize the ability to see the users of organisation.
To perceive the new brands of Hyundai Motors in the society so that every individual aware about new brand of Hyundai.
To analyse the warranty, service, sustenance, renovate regarding the organisation.
To find the market strategy from different data analysis such as SWOT ANALYSIS, INTERNATIONAL STRATIGES and so on.
PURPOSE AND SCOPE OF THE STUDY
The main purpose of the company is to know about all the market competitors because in 21st century competition is so tough between every organisation. The significant of the company is that to satisfy their customers because customers have more expectations from the company from which they purchase their products because this satisfaction help the organisation to obtain new and well maintained products and take more and more profit after complete the expectations of the customers.
The scope of study of HYUNDAI MOTORS is to the safety of the customers because firstly safety is the more important part to satisfy the customers. With the help of this study company make new policies and also work on new brands so that they can safe their customers by making new inventions such as air bags in front of the car so that if any person meets with an accident then these air bags open at that time and safe the life of the person. These kind of things will increase the sales of the company.
OVERVIEW OF THE COMPANY
The following theoretical framework to analyse organisational strategies:
SWOT ANALYSIS OF HYUNDAI MOTORS
SWOT ANALYSIS is a technique which is use to identify the Strength, Weakness, Opportunities, Threats related to business project. Internal and External environment is an important part to analyse the organisation strategy. The SWOT analysis gives us the information about organisation’s resources, capability, competitors. First of all as per as i mention that Hyundai motor company produced in South Korea which is its home country and its host country is India in which i will discuss about SWOT Analysis if it will be produced in India then what’s the changes occurs in these countries. Analysis in INDIA. STRENGTHS:
ECO FRIENDLY IMAGE: In 21st century Hyundai Motor Company attract the people with it’s highly brand image and also with sales. Initially customers trust on the product has mole value because when customers believe that the product which they want to purchase is more valuable and interested then it becomes the eco friendly image of that product. For e.g. In South Korea Hyundai has create eco friendly image among customers as well as if we talk about India then in this country there is a big company which is known as HMIL(HYUNDAI MOTOR INDIA LIMITED) so that’s why it is trusted brand in INDIA and also HIML provides good services to their customers.
2. STRONG NETWORK: Hyundai Motor Organisation has strong distribution network in all over the countries because it an international company and it has huge number of suppliers which sending products to another country. South Korea exports so many cars to INDIA, Australia and China. In 2017 car export volumes dropped for fifth year. Globalisation has greatly contributed to Korean exports which are very useful in the nations GDP (GROSS DOMESTIC PRODUCT) growth that’s why it is the 6th highest brand in the entire world.
3. POWERFUL ASIAN MARKETS: Hyundai motors companies have strong Asian markets. South Korea has so many markets in India and china. In India there is a popular market called Hyundai Creta SUV which produced huge number of vehicles in the year 2017.another cars such as i10 and i20 have also popularity in Indian market. Asia is biggest market which sold 1.88 million vehicles in 2017 that’s why it is internally popular company.
4. EXTERNAL ENVIRONMENT: Environmental factor having more impact on the company. Such as high oil prices and car consumers so there are so many environmental issues. Like how many people buy cars in all years and when the prices of petrol are increasing then what effects more the company or the customers.
YEAR SALES REVENUE IN BILLION U.S. DOLLORS
EMPLOYEMENT: The employees of Hyundai motor company is increasing day by day. In 2008 the numbers of employees are 14.3%. There are 22,066 overseas employees’ works under Hyundai Motor Company in Korea and in India 46,458.
In this chart the number of workers in 2014 are 5.9% and in 2015 they are increasing by 8.5% and then it suddenly slow down by 4.5% and in 2017 it reaches to the highest peak which is near to 14%.
In upcoming years the costs of Hyundai Motor Organisations growing day by day. Which creates huge problems for customers and this is one of its main weaknesses. If we talk about Indian HMIL then it produce so many cars and nowadays spare parts are more costly for purchasing. Previously Hyundai cars price starts from 3.33 lakh for cheapest car EON and then it arises with 25.74 lakh.
Increase in the number of prices makes its hurt image among all the customers due to high cost structure creating by organisation.
Lack of services when dealing of second hand cars. Sometime dealers would not prefer old cars or second hand cars and it creates problem for customers.
Hyundai Motor Company develops new models of cars which highly impacted on market share.
This organisation hugely focuses on R;D (RESEARCH AND DEVELOPMENT). This is more effective for spending in innovative cars.
Hyundai companies emerging nowadays and its gives a lot opportunities to employees and with the help of this opportunity the workers can enhance their skills.
Nowadays economy is improving and it is strongly increase in new vehicle sales.
Hyundai increase the high market share.
Hyundai Company faced so many competitors in different countries because it is an international company. Its main competitors are Toyota, Ford, and Volkswagen and so on. There are also numbers of new companies such as Tesla which creates new electric cars and which also tries to build self-driving cars.
Secondly currency exchange rates are also matter. For example KOREAN currency rates are increasing which creates problems for another countries such as in INDIA its one rupee in dollar rate is 50.45 and also its rate ups and down day by day so in India lower profit for Hyundai as compare to another foreign countries such as Australia and so on.
PORTER’S FIVE FORCES
BARGAINING POWER OF SUPPLIERS
BARGANING POWER OF BUYERS
THREAT OF ENTRANTS
RIVALRY AMONG COMPETITORS
THREAT OF SUBSTITUTES
BARGAINING POWER OF SUPPLIERS: The bargaining power of Hyundai motor company suppliers is low because this organisation is scattered in all over the globe that’s why it has small number of suppliers. The suppliers of Hyundai industry provide different kind of products. For example: South Korea Hyundai companies deals with both other national and international suppliers such as India, China, and Australia and so on. The Hyundai suppliers involve both on hyundai’s strength and brand image. With the help of brand suppliers know that which brand is more powerful and also know about the quality of product. The suppliers choose their partners who are well qualifies, well drivers, and experienced partner who have an experience of supply chain. Otherwise the bargaining power of suppliers is less.
BARGAINING POWER OF BUYERS: The bargaining power of customers is increasing in 21st century because the competition between the organisations is growing and the companies produced different kind of products which attracts the customer. The competition is tough and it reaches to the higher level for example: HMIL (Hyundai Motor India Limited) organisation produced different products such as Tata, Mahindra. Sometimes the bargaining power of buyers is low because the latest brands of cars which are obtained by Hyundai company are more costly and which creates the problem for customers because buyers wants more and more saving. Apart from this the customers focusing mainly on sales and services. Increasing the number of sales increase the bargaining power.
THREAT OF NEW ENTRANTS: The threats of new entrants is low because there are number of industries who wants to become the part of automotive industries and new industries invest more and more money on new technologies, marketing and that’s why these new companies invest in billions and they develop new cars or other products which make them famous so the threats of new entrants is low due to high cost of brand. For example: FORD the Indian industry spending more money for its set up and improve the facilities and now it becomes a high cost brand.
RIVALRY AMONG COMPITETORS: In this modern era if we talk about competition then the competitive rivalry are continuing growing. Technology is vast nowadays and it produced different kind inventions and competitors invest a lot of money on it for become famous and they also want to maintain their industry, reputation, gain power of customers so that they make more and more profit so the rivalry among exiting firms is become high due to vast technology each and every product is now famous on social media
THREAT OF SUBSTITUES: The threat of substitutes is average. For example when new product introduced with same customers then industry suffers. Firstly if the organisation understand the need of the customer and also provide all the facility to the customers and satisfy them, lower the prices so then it will become high or otherwise it is medium.
As per as I mention that the Hyundai Motor Company is an international organisation which produced so many products globally and also this company invest so much on technology. MEET WITH VENDORS: First and foremost, products are also developed with the help of vendors or sellers so that the suppliers come to know about the views of the people.
ADVERTISEMENT OF PRODUCTS: The advertisement is very important for viewing the product on television, newspaper, radio, internet such as on facebook, intagram. On television when we see an advertisement of car then people know about the quality and price of the product and they attracts towards that product.
Newspaper: A lot of people read newspapers and with an advertisement in the news then individuals know about the rate company of that product.
Internet: without internet people can’t imagine their lives because nowadays social media is more famous for an advertisement of the organisation. For example on face book there are number of websites for watching any organisation.
This is a strategy which is use to evaluate cultural, administrative, geographic and economic difference between two countries. In this framework am going to discuss Hyundai’s home country South Korea and its home country India. Such as the Indian culture is so different as compare to South Korea. In India there is a religion system and which is not in South Korea. The distance between both countries is more as well as the power, the uncertainty in India is less as compare to South Korea.
THE DIFFERENCE BETWEEN INDIA AND SOUTH KOREA
Blue is SOUTH KOREA and RED is INDIA
ADMINISTRATIVE DISTANCE: firstly there is a currency difference between both countries India and South Korea. The trade agreement signed between them to expand business and its trade reaches to 50$ billion in 2030.both countries sign 11 contracts so that they make links with each other and export their products to each other.
Geographic and economic distance: the main thing is that the transportation in both countries is good but the communication difference between both countries is more. In INDIA most of the people are uneducated. If we see the graph the power, distance, individualism, uncertainty there is a major difference. The power of South Korea reaches near to 80% and it is 20% more than India. The uncertainty is more in India as compare to South Korea.
The number of workers in 2014 are 5.9% and in 2017 this employment increased by 14%.
The cost of Hyundai motor organisation is increasing in the upcoming years which are not good for customers sometimes due to lack of money and if they want to see second hand car the service is very poor.
The research and development is the major mission of Hyundai because with the help of this they can easily find new cars and then research them and produce them.
The bargaining power of suppliers is low due to globalisation.
COMMENTS AND RECCOMENDATIONS
First main point is cost control because the cost is growing day by day which create problems for middle class people because they do not afford too much money so the prices will be less down.
Secondly the rate of fuels will decrease and provide eco friendly scheme to every person regarding fuels.
The bargaining power of suppliers will increase so that the organisation supplies more and more products.
Post services provide to the customers after they buy the car.
1.www.cheshnotes.com2. www.statista.com3. www.panmore.com4. www.hofstede-insights.com5. www.scribd.com6. www.hyundai.com.au