The Entry Mode Strategy Of Hyundai, A Korean Multinational Automobile Manufacturer

From the last two decades auto industry is growing more competitive. Competition from the foreign automakers like Toyota and Honda is also high. In

In the following report a description and analysis of the international marketing strategy of BMW will be given. First a description of the company will be given, shortly explaining the history and elaborating on it’s current situation. Secondly an overview of the company’s activities will be provided including: products, brand portfolio, markets and other relevant information. This will lead into a discussion regarding the company’s recent performance. Furthermore a detailed description and analysis of BMW’s i-series’ international marketing activities is given which will explain market segmentation, targeting and positioning, the product strategy, market entry and distribution methods and promotion and pricing strategies. Then

The last several years were also tumultuous for the U.S. auto industry. After dominating the market for decades, American automakers had grown complacent about product development. At the same time, rising gas prices and uncertainty about the economy caused consumer preferences to shift from SUVs to more fuel efficient vehicles. Foreign competitors entered the U.S. market offering more reliable, higher quality and more fuel efficient vehicles at a lower price and began to steal market share away from American automakers. In order to remain competitive, U.S. automakers need to focus on increasing production efficiencies and developing innovative product offerings. Firm Analysis

The need for a solid market entry decision is an integral part of a global market entry strategy. Entry decisions heavily influence the firm’s other marketing-mix decisions. Company can enter International Market with many ways, some of them are as follows:

Before we discuss about the barriers of entry to the global automobile market, we have to understand what barriers to entry is. In a market, when all the firms are making profit, there are new comers to the market in

Chung Ju-yung founded Hyundai Motors in 1967. The main headquarters of this company is based in South Korea. The main area it specializes is automobile industry. They first started with assembling cars and trucks for Ford. The first car they launched was Hyundai Cortina in 1975, which was in tie-up with Ford Company. Just in 2 years period of time they were the 13th largest in the world with the share of 2% in the global retail market.

Market entry mode is to create the possibility by arranging company’s products, technology, human skills, management or other resources to enter into a foreign country. The problem faced by the company is what kind of strategy should be used for the entry mode selection.

Based on the global market share statistics for 2014, the leading auto manufacturer was Japan’s Toyota Motor Corporation with 11.6% of the market shares. Ranked in second place was Germany’s Volkswagen AG with 11.1%. Third was the American General Motors Company with 8.2%. Continuing with order of rank is American Ford Motor Company in fourth place, and in fifth place it is a tie between Japan’s Honda Motor Company Ltd and Italy’s Fiat SpA with 5.9%. In the lower ranks is Nissan, Daimler, BMW, and SAIC (Statista, 2014). As seen by the statistics, the biggest competitors for America are Japan and Germany. In the past America was the front runner in the auto industry, which changed in 2009 when the American auto industry crashed. Recently there have been a steady climb in the American auto industry. With this improvement America is becoming one of the top auto manufacturers again.

Volkswagen (VW); Market Entry Strategy; Foreign Direct investment (FDI); China’s car industry; Shanghai Volkswagen; Joint Venture.

In this report I aim to analyze and compare the motives and strategic operations of US and European car manufacturers that have recently set up production plants in Emerging Markets and Asia Pacific regions.

Competitive behavior regard with the set of competitive actions and competitive responses the firm takes to build or defend its competitive advantages and to improve its market position. Competitive behavior completed by strategic actions or responses or tactical action or responses. The drivers (awareness, motivation and ability) influence the firm’s competitive behaviors, as shown by the actions and responses it takes while engaged in competitive rivalry (Ireland, Hoskisson&Hitt). The justification as follows:

One of the problems faced by Malaysian Automotive Industry is reputation. For many years Proton car is always being branded as a cheap and below par car manufacturer. Due to this unwanted reputation, consumers are sceptical about Malaysian cars where it does not guarantee any assurance. Since Proton was formed in 1985, Proton managed to breakthrough in domestic and international market as an affordable car. But over the years, Proton has compete aggressively with other automotive manufacturers due to localization of many foreign manufacturers in Malaysia. Due to the localization, foreign cars has been in the market in lower prices. This makes Proton as a car that does not have resale value because the pricing of Malaysian cars depreciates rapidly each year.

As a result of the increased demand of cars, the competition among car companies is becoming intense. Although the market of car is the biggest growing market in the world, there are still some companies who make cars failing year after year. However, there are some outstanding car companies such as The BMW Group performing distinctly.

Well known companies like Nike, Microsoft, Sony, Shell Group are just some of the big companies that went global and expanded their trading around the world, they are large businesses that operate internationally in many countries. Development of worldwide integration urges companies to reach out international markets and interact with foreign customers. Businesses focus on fulfilling the demand of the market by its products or services, besides their target is increasing profit, in order achieve these goals they favor to expand their work in a foreign market. Other reasons to internationalize their business may be to become

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.