Hyundai Case Study

1560 WordsMar 23, 20137 Pages
Case Study - Hyundai: Leading the way in the global car industry The global car industry is one of the largest and most internationalised business sectors. There are 17 major global car companies, each of which produces over 1 million cars a year. The Hyundai Motor Company (Hyundai) is South Korea 's number one car maker and the 10th largest in the world. It sells vehicles in over 190 countries producing about a dozen car and minivan models, plus trucks, buses and other commercial vehicles. Popular exported models in the United States are the Accent and Sonata, while exports to Europe and Asia include the GRT and Equus. During the global recession in 2008, while most car companies suffered steep sales declines, Hyundai managed to earn…show more content…
By the 1970s the firm had become a car company and began an aggressive effort to develop engineering capabilities and new designs. In the 1980s Hyundai began exporting the Excel, an economy car with a US$4995 price tag, to the United States. This car was an instant success, and Excel exports grew to 250,000 units per year. But problems occurred and the car fell from favour. The Excel suffered from quality issues and had a weak dealer network, which did little to dispel negative imagery or generate substantial new sales. Buyer confidence waned in the late 1990s. Hyundai’s brand equity weakened. In response to these quality complaints, Hyundai initiated major quality improvement programes and introduced a ten-year power-train warranty program, unprecedented in the car industry. The strategy was a major turning point for Hyundai. Geographical diversification In 1997 Hyundai built a factory in Turkey, giving the firm convenient access to the Middle East and Europe. Next, Hyundai opened a plant in India and within a few years became the country 's best-selling brand of imported cars. In 2002 Hyundai launched a factory in China, doubling production. Hyundai is aiming for 20 per cent share of the Chinese car market. The firm also partnered with Guangzhou Motor Group, winning entry to China 's huge commercial-vehicle market. In addition to gaining access to low-cost, high-quality labour

More about Hyundai Case Study

Open Document