Hyundai Vietnam Strategy

Topics: Automotive industry, Automobile, Hyundai Motor Company Pages: 8 (3005 words) Published: November 3, 2010
1. Introduction
Hyundai Motor Vietnam (HMV) founded in March 2006 and, Hyundai Motor Company which is one of the world leading automobile manufacturers in South Korea has appointed HMV as the official distributor of products for cars of Hyundai brand in Vietnam market. Hyundai Motor Vietnam received assistance with product development policy and genuine after sales service from the Hyundai Motor Company in South Korea. HMV has become one of the leading distributors of imported cars as well as the most prestigious in Vietnam. After more than two years since the company officially began operations, more than 6,000 cars and other vehicles of Hyundai brand was imported and distributed to consumers in nationwide by Hyundai Motor Vietnam. * Vision & mission of Hyundai Motor Vietnam (HMV)

* HMV will strive to uphold the world-renowned brand image of Hyundai. * HMV will be innovative in its products and services, and passionate towards service quality and customers empowerment. * HMV will provide its employees an environment that is driven to achieve employee competitiveness, growth and success. This report contains competitive analysis, value chain presence and SWOT Analysis for the company as well as providing strategies for the company for the next 3-5 years to impulse the development of business in Vietnam. 2. SWOT analysis

* Internal analysis
* Strengths:
* The worldwide sales increased 36.6% in 07/2009 over the same period last year brought the group's biggest car Hyundai of Korea for the first step on the 4th rank in the list of major car manufacturers in the world.  The total number of cars sold on the world market in July 2009 increased 44.5% and reached 201,985 units compared with 139,772 a year earlier. Domestic sales of Hyundai also increased 15.4% and reached 60,638 units in July. (Vietnam Automobile Magazine, 2009)

* Hyundai owners experience fewer problems with their vehicles than any other car manufacturer in Vietnam (Tien Phong Magazine, 2010). The Hyundai Accent was chosen the best in the premium compact car segment and the Getz in the entry level mid - size car segment across several parameters. This study measures owner in terms of design, content, layout and performance of vehicles across several parameters. * Since other rival firms have invested huge amounts of capital to discover new technology, Hyundai can implement similar technology with less cost. Combined with being flexible mentioned above, Hyundai can quickly manufacture cars equipped with newer technology with less cost, making it more efficient. * Hyundai Motors, compared to Honda or Toyota, is still considered to be small in Vietnam market. So, Hyundai could be very flexible, financially and strategically, in many different situations. Therefore, whenever Hyundai chooses to implement its strategy, it can be quicker and more efficient than its rivals. For example, if Hyundai chooses to produce a new line of vehicle, it can produce enough to meet the market requirements, while other bigger firms must produce much more than that. Also, whenever there is a financial crisis, Hyundai may change its labor force and production capacity without causing a huge impact, while large companies may have to close door a few plants, layoff thousands of workers, etc. * Weaknesses

* Low brand recognition and brand power (by late entrant): Brand image is a significant entry barrier in the automobile industry. For example, such as target buyers and pricing of used cars are dependent mostly upon the firm’s brand image. Hyundai Motors still have low brand recognition compared to other larger firms, making it harder for Hyundai to grab a wide range of consumers. Also, since brand recognition is low, price depreciation rate is very high in comparison to Toyota or Honda, which curbs new car buyers from buying Hyundai. (Autonet, 2010) * Because of HMV don’t have its factory in Vietnam so they still have to import cars...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Hyundai Strategy Implementation Essay
  • Essay on Strategy
  • Strategy Essay
  • Theoretical Basis of Hyundai Strategies Essay
  • Hyundai Marketing Strategy Essay
  • vietnam Essay
  • Essay on Marketing Strategy of Hyundai Motors
  • Hyundai Essay

Become a StudyMode Member

Sign Up - It's Free