Post on 06-Jul-2015
Ece ŞEVKAN
The Struggle for International Business
Introduction
The Global and Automobile Industry
South Korea and Auto Industry
HMC’s Challenges
Early Internationalization Effort
Ultimate Success
Recent Events
Conclusion
Introduction
Hyundai Company and history
The Global Automobile Industry
Production capacity
How many percent of employed
Number of Trends
Establishment of global alliances
Industry consolidation
Global market dynamics
South Korea and the Auto Industry
Global Market targeted
South Korea is
advantageous for
beginner
South Korea and the Auto Industry
Low-wages
Supply of capital for firms
Some location-specific advantages: Abundance of production factors in cost effective labor
Knowledge workers
High technology
Capital
South Korea and the Auto Industry
South Korean consumers: Highly demanding
HMC’s conquest : Asia, Africa, Middle East,
Latin America , Holland and Belgium
South Korea and the Auto Industry
Help from the government
Household are encouraging to save
HMC’s Challenges
Asian crisis in 1990s
South Korea against the crisis
HMC against the crisis
HMC’s Challenges
Early Internationalization
The main objective: to
enlarge the market in
foreign country
Ultimate Successto improve the product quality
10 years warranty program
Ultimate Success
Geographical diversification and FDI in the
worldwide.
Ultimate Success
Joint-venture with
partners to cooperate
in R&D,
manufacturing, design,
and other value-adding
activities.
Recent events
By 2000 worlds fastest-growing automobile
company
Profit margins
Recent events
Chung Mong Koo received a 3 – year jail term for embezzling the equivalent of more than $100 million in company funds
Currency exchange rates caused net profit to fall by 35 %
Recent events
Grown steadily even in
emerging markets
J.D. Power placed HMC
first among Asian
brands in customer
service satisfaction
In conlusion
HMC has worked
hard and for years to
improve and maintain
their international
success.