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Swot Analysis of Hyundai Motor China

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Case: IB-91 Date: 09/24/08

HYUNDAI MOTOR COMPANY IN CHINA
At the turn of the twenty-first century, Korea‟s Hyundai Motor Company (HMC) announced ambitious plans to become a global leader in the automotive industry, and established plants in various parts of the world, including Europe, India, and North America. In 2002, HMC turned its attention to China, one of the world‟s largest and fastest-growing economies. China‟s burgeoning demand for automobiles was forecast to become the world‟s third-largest―even as the worldwide auto market was stagnating. In this light, HMC had selected China to be site of its largest, lowest-cost assembly and manufacturing base. So it was that HMC created a separate China Business Division to lead its move …show more content…

According to Kim, in 2008: The China automobile market has become fiercely competitive, with no company as the dominant market leader. Every automaker in the market has introduced their latest models in an attempt to attain successful market dominance. The excess supply of automobiles in the market has become a worrisome issue as the market entrants have flooded the market with cars. As competition intensified, in 2007 Beijing Hyundai experienced a decline in sales compared to the prior year (Exhibit 3), and by 2008 a full-blown price war in China involved many of the world‟s major automakers. In response, in 2008 Beijing Hyundai launched its second plant in China, along with new plants in India and Russia to complete a global production network across Korea, the U.S, China, India, and Europe. Yung Yu Koo, deputy general manager at China Business Group of HMC, described the thinking at Beijing Hyundai: We are always thinking ahead as to how Beijing Hyundai can achieve sustainable competitive advantages over other major competitors. We continuously revisit forecasts of the future growth of the China automobile market to see what effect this will have in Beijing Hyundai‟s market share both in the short and long term. The first phase of achieving HMC‟s global competitiveness was obtaining production and research capabilities, and the second phase is switching to a market-focused strategy by enhancing marketing skills. While this can be a difficult task, it is not

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