Case analysis for Hyundai Card

1338 Words Aug 21st, 2014 6 Pages
Executive Summary

As a latecomer in Korean credit card market, Hyundai Card has gradually increased the market share since it entered the business in 1999. With its tie with Hyundai motor group, the company branded itself as "Hyundai M Card". It started off by attracting buyer to consider using the card to purchase Hyundai automobile by offering discount. In later stages, the company has adopted the customer segmentation strategy to diversify its target groups of clients.

With the emphasis on market segmentation based on different groups of card holders, utilizing clients ' card usage data, it has led to the unique customized service via alphabet card marketing activities. The strategy has led to great success, Hyundai Card
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Cons: With the end of the credit card business era, Hyundai may suffer certain degree of reputational loss in the domestic market, people may start to worry about the future of the company, it may cause bigger problem to other core business such as the automobile business.

2. Down size the business by cutting cost

Pros: The company can remain as a player in local card business, and the company can allocate additional budget to invest in other areas of business with higher return Cons: With less budget allocated, the company may start to lose the status as one of the four biggest player in Korean card business

3. Stay aggressive in card business but try harder to expand the international market

Pros: While the company remains its presence in its domestic market, the company will develop more profit growing point in overseas market

Cons: The uncertainty in less mature overseas market may not guarantee profit, it can also lead to unexpected loss for the company

Decision Matrix Three options may be good options for different companies. For prestigious brand name like Hyundai Motor and GE, it is always not a wise choice to come up with a solution with the aim of securing short term profit at the expense of sacrificing the brand equity. As a late comer to the card market, Hyundai card has experienced success by capturing larger market share. And the good

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