The Thriving Automotive Manufacturing Region Of South Korea Essay

maintenance and service. I can associate with this personally. I worked for Honda as a

While car manufacturing is a global industry, automotive companies such as JLR operate in broader regions such as Europe and Asia. Three major trends were identified affecting car production in mature markets, the first was the fragmentation of mature markets, customers were demanding more choice, and this has made it difficult for manufacturers to obtain economies of scale, so cost had to be reduced and with the general

In 1895 there were only four cars officially registered in the U.S. Little more than 20 years later in 1916, 3,376,889 were registered! Because of the automotive industry 's major technological advances the automotive industry has been able to pull ahead of other industries over the years. This industry has also proven that to be successful in the business world, you have to take some risks. which has allowed them to get advancements that other industries who weren 't willing to make such risks fail to take advantage of.

Nothing is more important for global companies today than having the dexterity to be simultaneously local and international, to swiftly respond to regional preferences while scaling operating tactics and manufacturing improvements around the world. And as Honda's success in the international arena demonstrates, this capability is directly linked to unremittingly reexamining with every new automobile model - more broadly, with every new undertaking what is already believed to be

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 automotive industry as one of the world 's most vital economic sectors by revenue covers a wide range of businesses involved in the design, development, marketing, production, and selling of motor vehicles. A large proportion of this industry is focused on agriculture, especially farm machinery. Although quite often people consider farming as an old fashioned, hardworking profession, owing to the technologically advanced practices farmers invest much less effort and produce much more in the 21st Century (Wang, 2010).

The American automotive industry is a massive force, to say the least. The historical impacts of automotive technology and assembly line manufacturing has effected economies around the world and has also created world-wide ecological challenges. Governments, under pressure from environmentalists, have had to realize, create, implement, and constantly refine manufacturing and emission standards. Consumers, who foot the gas bill for vehicles, continue to express their desire for less expensive autos that require less fuel without sacrificing style, comfort, safety, or performance.

The United States recession (which lead to a world recession), began in 1997 and significantly impacted the United States automobile industry during the recession period. The United States automobile industry is still reeling from the effects of the recession throughout the period of economic recovery that continues today. According to Chu and Su, “In this credit-driven recession, one of the hardest hit sectors was the automotive industry, along with the housing and financial markets. Chrysler and General Motors were pushed into bankruptcy; and 276,000 jobs in the automobile and parts industry were destroyed, a whopping 36 percent of the total employment in the sector”.

The US automobile manufacturing industry includes about 200 companies with combined annual revenue of about $250 billion. Major companies are GM, Ford, and Chrysler (which is controlled by Italy 's Fiat). The industry is highly concentrated: the top three companies account for more than 90 percent of revenue.

The American automotive industry has led the American economy for many years. This industry has shaped our development, and influenced American culture and social mores. Now, ensnared by globalization and other dominant factors, it faces a difficult reality. The American automotive industry significantly impacted the lives of Americans. Detroit’s “Big Three” had the most significant roles in this. Chrysler, Ford, and General Motors were American symbols. They are credited for a significant percentage of all American jobs; they put numerous blue-collar families into the middle class, and helped America cultivate into the giant of the twentieth century. Unfortunately, the fabled automotive firms are not what they once were and are traveling

The American Auto Industry has grown grammatically since the very early of the twentieth century.

Just like the other industries such as apparel, electronics, and consumer goods, the automobile industry has accelerated its foreign direct investment, cross border trade and global production. The automobile industry has increased outsourcing and bundled value chain activities in major supplier chains. As a result, more developed countries that serve as suppliers have increased their involvement in trade and FDI. With these increased supplier capabilities, large national suppliers have become global suppliers and are now controlling multinational operations. This is because of their increased capability of providing good and services to various lead firms all over the world. The automotive industry has a distinct firm structure. This

challenges, however, are the most difficult ones to face and overcome. Some environmental issues that

At the end of World War II, Korea was a poor former agricultural colony of Japan. But the rapid growth of Korea’s industrial economy has been remarkable. The economy of South Korea is now the third-largest in Asia and the 13th largest in the world by GDP as of 2007. To trace back the economic development of South Korea, the former president Park Chung-Hee played a pivotal role, and was credited for shifting its focus to export-oriented favoring a few large conglomerates. Unlike his predecessors, Park showed a strong commitment to economic development, believing good economic performance as a primary means for enhancing his political legitimacy. Under the President Park Chung-Hee’s era, the government played a dominating role in a

Lying between the China and Japan, South Korea is located Korea Peninsula that is convenient location of Far East Asia, which is good for trading due to close Pacific Ocean. Korea’s land is not so big, so this reason appropriate place to establish the factory is not difficult. South Korea’s manufacture industry complex is concentrated on near Seoul, which is the capital and near Busan, which is the second city of Korea. Both city has big port and located near the ocean. For overseas manufacturers with limited knowledge of doing business in South Korea, near the capital and second city will probably be a safer bet as an alternative production base.