hyundai globale expansion

8/10/2019 Hyundai Globale Expansion

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Hyundai Globale Expansion

Team Member :Kankana Basu, Enkhmandal Bayarbat, Jing Lu


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Outline

History of Hyundai Organisation

Global long term objectives

SWOT & Value proposition, break down to key markets

International market adaption (Enkhmandal)

America (Enkhmandal )

China & India (Jing & Kankanda)Germany ( Kankanda)

Assumption for further global expasion


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History of Hyundai Organisation

1967 foundation by Ju-Yong Chung

1986 FDI in USA

1996 FDI in India

1998 Aquisition Kia Motors in 1998

1999 Reorganisation (cost & Know-how)

2000 Plan of Expansion overseas markets in 2000

2002 FDI in China

2003 FDI in Europe


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Long term objectives

global leader in automotive industries


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overview the global vehicle market


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SWOT AnalysisInternal Strengths :

- Cost

- Price

- Varities

- local Design abilities

- earlier entry in India

Weakness:

- Culture Gap

- late entry to China

External Opportunities:

- huge Markets potentials

overseas

China CAGR: 13.87% in 2013

North America CAGR : +5%

Threats:

- Brandawareness overseas

- Unknown the markets

- Firce pricing rivals in emerging

markets


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Value Proposition in global expansion

Markets entry Low-end vehicles entry to foreign markets (price advantage)

max. usage the cost advantage ( value for money)

cut price to gain shars

middle- & high-end vehicles follow

trend

Technical local design adaptations to local demands in culture diversity, government requirements, driving

habits, high tech requirments & poor utilizing conditions

strict quality control to improve the brandawarenes

Culture deiversity management

effective internal cummunication with partner and open to conflict

supply Chains

optimization the geografical and cultivation the suppliers

sales

Distribution system adaptation , incentive plan distributors


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Hyundai in ChinaMarket entry

Technology & brand granting

JVs in passenger cars & Engines

JVs in commercial vehicle


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SWOT ChinaInternal Strenghths :

Cost, Price, Design

Adaptations,

Supply Chains ,

Distributions

Weakness:

Culture Gap

External Opportunities:

Markets potentials China

CAGR : 13.87% 2013

Threats:

Brandawareness

Unknown the marketsCulture Gap

Fierce rivals


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Approch and Adaptation in China

Culture Adaption:initial car type in China & tailor made to China market- outer appearance -> enhance the status of the owner

- promoted the plush interiors for the rear seats

- adjuested the structure and height -> local road conditions

- improve the fuel efficiency ( new China Elantra)

- Euro 4 Emission standards according to governement ( new China Elantra)

- apperance more dynamic -> target younger customers ( new China Elantra)

Supply Chains:

- cost reduction by optimising and cultivation the supply chains, eg. the technical and managerial training

Production:strict quality managment , also to subcontractors

Sales : distribution adapt the " 4S" dealers

- Geografical spreaded over China

- Criterion for selection the dealers: past experience, min. investiment, as well as the passion and determination

HR:attract high-quality human resources from USA and Europe -> expansion the R+D centre -> customizing for

local markets with latest technology

Reacts to competitioncohensive cooperation between head quarter with daughter companies

sales reduction in 2006 and 2007 to Toyota Camry & Honda Accord-> overlook the luxury image in China

- > realease new models continuously and establish an efficient distribution channel

Source : Case Study reading materials


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Benchmark the China car makers 2013

Hyundai has overseeded the Toyota and Honda and came into Top 10 listSource : CAAM reported on China daily


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Recommendations ChinaOpportunities & Risk Opportunities :

- 24 Mio. vehicles areexpected to be sole in 2014

- CAGR : + 18%

- Ubanization process

- New energy vehicles are

encouraged by

governement ( 16% ttl.

vehicles, 5% Taxis)- Japan players has no

solution to overcome the

current political issues

Riskes:

- Culture Gap- Firce competitions lead

low margin operations

- technical gap from local

players becomes narrow

- Anti-corruption reduces

the overall comsumptions

Recommendations - Optimising the supply chains (Cost)

- further development the local R+ D, speedy the turnover

of new models, build the local competence (Tech)- adaption the new trend with new energy vehicles for

enviromental protection esp. the polluted air ( Innovation)

- Brandawareness by online marketing & improving the

quality and after sales services (Marketing)

- Expansion 2nd tiers cities in west China (Sales)

hyundai globale expansion

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