Hyundai Market Strategy
Introduction
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.
There are many different types of market entry strategies that may be implemented by a foreign firm in an emerging country. Amongst the most popular are:
1. Portfolio Investment;
2. Export
3. Franchising
4. Licensing
5. Shared Equity/ Joint Venture
The initial market entry strategy implemented by Hyundai Korea was a joint-venture. However, after liquidation (1999), the new entry strategy for re-establishment was franchising. The aim of this paper is to show how Hyundai can reposition its operational strategy utilising a management decision-making and controlling processes.
The team of Hyundai Automotive South Africa took an enormous challenge in 2000, with the acquisition of the Hyundai franchise. Since 2000, due to high pressure at home (South Korea), Hyundai and the other Korean auto makers have become more aggressive in terms of pricing and quality. They have begun developing larger cars and broadening their product ranges to meet diverse customer preferences.
Associated Motor Holdings, a division of Imperial Holdings, announced in the month of April in the year 2000 that they had signed a distribution agreement with Hyundai Motor Company in Korea to import and distribute of Hyundai vehicles and parts for Southern Africa. Economically and politically, Hyundai Motor Company Korea is dedicated to AMH operation and to Southern Africa’s development.
Discussion
Strategies are the means to the ends or what a firm is going to do to meet its objectives. Many companies, including Hyundai and Pepsi Co, have entered and been successful in emerging markets. Market entry strategies shows that there are different ways or strategies by which firms can enter international markets. The strategies vary in the amount of risk, control and investment that firms face.
Initial
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.
There are many different types of market entry strategies that may be implemented by a foreign firm in an emerging country. Amongst the most popular are:
1. Portfolio Investment;
2. Export
3. Franchising
4. Licensing
5. Shared Equity/ Joint Venture
The initial market entry strategy implemented by Hyundai Korea was a joint-venture. However, after liquidation (1999), the new entry strategy for re-establishment was franchising. The aim of this paper is to show how Hyundai can reposition its operational strategy utilising a management decision-making and controlling processes.
The team of Hyundai Automotive South Africa took an enormous challenge in 2000, with the acquisition of the Hyundai franchise. Since 2000, due to high pressure at home (South Korea), Hyundai and the other Korean auto makers have become more aggressive in terms of pricing and quality. They have begun developing larger cars and broadening their product ranges to meet diverse customer preferences.
Associated Motor Holdings, a division of Imperial Holdings, announced in the month of April in the year 2000 that they had signed a distribution agreement with Hyundai Motor Company in Korea to import and distribute of Hyundai vehicles and parts for Southern Africa. Economically and politically, Hyundai Motor Company Korea is dedicated to AMH operation and to Southern Africa’s development.
Discussion
Strategies are the means to the ends or what a firm is going to do to meet its objectives. Many companies, including Hyundai and Pepsi Co, have entered and been successful in emerging markets. Market entry strategies shows that there are different ways or strategies by which firms can enter international markets. The strategies vary in the amount of risk, control and investment that firms face.
Initial
References: 1. http://www.investorwords.com/2078/franchise.html#ixzz11LJ6jZJg 2. www.hyundai.co.za 3. http://www.engineeringnews.co.za/article/world-cupsponsor-hyundai-hopes-to-participate-in-tournament-transport-2008-10-31 4. http://worldwide.hyundai.com/events-and-sports/fifa-worldcup/overview-and-results.html 5. http://en.wikipedia.org/wiki/Billy_Rautenbach 6. allAfrica.com: South Africa: Rautenbach company is liquidated 7. allAfrica.com: Botswana: SA group may take over Hyundai 8. www.dispatch.co.za/2000/02/18/business/BUSS99.HTM 9. www.gov.bw/cgi-bin/news.cgi?d=20011219 10. www.contemporarymanagemnetinSAautomanufacturingindustry.com