The paper “Evaluation of Hyundai Motor Company” will look at the high sales and a powerful brand value in the world automobile market. Hyundai has established a strong brand image. Since 2005 Hyundai has listed on the world’s top 100 brands…
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For instance, the company registered revenues of $72.3 billion in FY2009, an increase of 14.7% over FY2008. In particular, Hyundai boosted its operating profit margins over the last three financial periods and it elevated from 4.1% in FY2007 to 5.9% in FY2009. Thus, Hyundai has been able to improve the automobile market share in the global market more than other competitors in spite of the recent world economic recession (Datamonitor, 2010). Origins and Key Developments Hyundai was established in 1967 and it did not have proper technology in order to produce automobiles. As a result, although Hyundai released the Pony, the first export car model in South Korea, with technical assistance from Mitsubishi Motor in 1975, the company struggled with the manufacture of cars until the 1980s (Company Website, 2010). However, Hyundai developed core components independently such as gasoline engines and transmissions for the first time in the 1990s (ibid) and the company began to invest significantly into its car quality, design, and research in the 2000s. As a result, Hyundai has been able to achieve high sales and a powerful brand value in the world automobile market (Datamonitor, 2010). ...
re, Hyundai was awarded “car maker of the year 2010” by AM, the UK’s auto trade magazine (AM Website, 2010), and automobile experts from nine Middle East countries selected Sonata, the company’s typical car, as the best mid-size car of the year 2010 (Company Website, 2010). Thus, the company is able to gain more customers and to record high sales due to a strong brand image (Datamonitor, 2010). Nevertheless, Kiley (2007) argues that despite earning a good reputation for a strong brand value, the company still does not establish high sales in the luxury car market. Customers who want to buy a car from Hyundai are mainly considering its inexpensive price and this price story is called the company’s image problem “The Yugo Factor” (BusinessWeek, 2007). When the company entered the US car market in the 1980s, it was generally compared with Yugoslavian automobiles which have quality problems (ibid). For instance, when the Hyundai’s vehicle was shown without any company’s logo in research with 200 car traders in the US, 71% of people would buy it. However, when the car’s logo was displayed, there were only 52% of people. This is the reason that Hyundai is still struggling in the luxury automobile market (Kiley, 2007). However, Hyundai
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Ford has been in crisis for some years now. The reasons that have lead to this crisis are many. There are external factors as well as internal factors that lead to the present crisis situation. But it is found that the center of all the issues of Ford is the serious mismanagement which has been undergoing in the company for years.
By taking into consideration all the aforementioned theories and concepts, the discussion in this paper will intend to demonstrate and analyze the managerial decisions taken by Hyundai Sonata (i.e. a particular brand by Hyundai Motor Company) being into competition with Toyota Camry in the international automobile industry.
Over the past decade, both companies have had significant changes in their brands due to external business pressures with each of them having reacted to such pressures differently with regard to leveraging their brands. Since the last great recession hit, General Motors, one of the largest automobile company in the US has faced quite a number of challenges in the market such as demand for low cost vehicles and more fuel efficient vehicles that cut costs.
This is where the concept of ethics and social responsibility comes into play. Generally, the term “corporate social responsibility” is used to describe this relationship between producers and consumers. According to Dimitriades (2007), this incorporates the ethical principles and values that steer conduct to ensure the production of consumer friendly goods, while also reflecting on the interests of the shareholders.
Hyundai motor company is one of the most appreciated automotive companies in the global market. In this paper it has been analyzed that the company’s performance over the years from 2008 to 2010 has been improved on its operational side but the company has not been able to demonstrate the same performance in managing its finances.
Consequently, the consumption of automobiles is increasing globally to a large extent, which again deliberates the increasing demand for fuels, especially the non-renewable natural resources. In the current state of the global market, the prices of fuel are highly unsteady at an increasing rate.
The company wishes to approach the Brazilian market in a distinct way since Brazilians need to experience more than just cars. Thus, it seeks to deliver the best possible customer satisfaction. If Brazilian government agrees to help, the company will need a total amount of $ 600 million US dollars to be functional.
Case Analysis Q1. The Student Motor Company has been recognized to be facing a tough competition from General Motors (GM) and Ford Motors. In accordance with the scenario depicted in the case, it has been determined that the company’s sale had dropped due its strong competitors.
Ford’s domestic sales have been low and stagnant for quite some time, in comparison to its European operations that has increased by producing many quality acclaimed vehicles. The reason behind the difference between domestic and international operations is expensive manufacturing facilities caused by “high wages and expensive health care".
The company faces various strategic challenges in their bid to enter the markets of more developed countries. In the past decades Hyundai had performed incredibly well in their local and international markets but currently, the continuity of this success is put into question. Major competitors of the company in developed companies.
12 Pages(3000 words)Case Study
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