Hyundai Market Strategy

2312 Words Oct 5th, 2010 10 Pages
Introduction

Hyundai automotive distributors were established in 1967. The company has displayed a high level of commitment to southern Africa’s future from both an economic and political point of view.

There are many different types of market entry strategies that may be implemented by a foreign firm in an emerging country. Amongst the most popular are:
1. Portfolio Investment;
2. Export
3. Franchising
4. Licensing
5. Shared Equity/ Joint Venture

The initial market entry strategy implemented by Hyundai Korea was a joint-venture. However, after liquidation (1999), the new entry strategy for re-establishment was franchising. The aim of this paper is to show how Hyundai can reposition its operational strategy utilising a management
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For example, a joint venture can have a limited life span and only cover part of what you do, thus limiting both your commitment and the business' exposure. • In the era of diversification and consolidation, JV’s offer a creative way for companies to exit from non-core businesses. • Companies can gradually separate a business from the rest of the organisation, and eventually, sell it to the other parent company. Roughly 80% of all joint ventures end in a sale by one partner to the other.

The Disadvantages of Joint Ventures

• It takes time and effort to build the right relationship and partnering with another business can be challenging. Problems are likely to arise if: • The objectives of the venture are not 100 per cent clear and communicated to everyone involved. • There is an imbalance in levels of expertise, investment or assets brought into the venture by the different partners. • Different cultures and management styles result in poor integration and co-operation. • The partners don't provide enough leadership and support in the early stages. • Success in a joint venture depends on thorough research and analysis of the objectives.

From the above discussion as well as the list of advantages and disadvantages associated with joint ventures it can be seen that Hyundai should
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