Case Study: Hyundai Motors

2338 Words10 Pages
For the purpose of this assignment, I have chosen Hyundai Motors as my multinational corporation (MNC) of choice. It was ranked 104th on Fortune’s top 200 MNCs in 2012 and 100th in 2013.

Introduction to the company
Hyundai Motor Corporation is a South Korean multinational automobile company founded in the year 1967 by Chung Ju Yung. Hyundai currently sells its cars in 193 countries, via 6000 showrooms. Hyundai Motors owns the biggest integrated automobile producing facility in Ulsan, South Korea, and has 6 research and development facilities in Korea, Japan, India and Germany. However, Hyundai Motors’ success has been one of ‘grass to grace’.

Internationalization of Hyundai
Unlike most internationalizing firms, Hyundai Motors did not
…show more content…
The approval process was delayed due to BAIC’s slow management which conflicted with Hyundai’s “chop chop” nature. The initial conflict slowed down Beijing Hyundai’s market entry into China.

Problems faced entering the China market
Hyundai encountered a few problems when it first entered China. Firstly, many major automobile manufacturers were already dominating in China. Hyundai also did not know about the distinctive characteristics of the consumers in China, labour markets suppliers for parts and they did not own any distribution channels. In addition, while Hyundai’s reputation for quality remained strong in its home ground, the brand was still viewed as lower status in China. And BAIC’s low status in China did not do any favours for Hyundai’s situation in the market. Many even doomed the companies for failure.

Undeterred, Beijing Hyundai ensured acceptable quality standards by supporting local China suppliers with training, which in turn allowed them to create a dependable local supplier networks (Barnett et all, 2008). The company also spent a lot on developing distribution channels that focused on all the important cities and regions in
…show more content…
During their initial internationalization stages, they made many blunders and almost went bust. However, they managed to survive and thrive internationally because of their quick response to the market and giving consumers what they want. When they realized that their consumers sought quality, they made many changes to make their quality top notch. When they realized that Chinese consumers liked luxury, they modified their car models to become more luxurious. Another factor, and also my favourite part about the company, that allowed Hyundai to succeed globally was the fact that determination was in the company’s DNA from its humble beginnings in Korea. They refused to accept failure at any stage. They went head-on against automobile giants from the US, Japan and Germany despite many looking down on them. Hyundai was not deterred by the fact that they entered the China market late or about how competitive the market already was before they entered. The company’s calmness and adaptability allowed them to gain market share and recognition in China within a short span. Which taught me that a company does not have to be the biggest or most reputable in order to succeed. And I strongly believe that Hyundai’s future internationalization plans will also be

More about Case Study: Hyundai Motors

Open Document