Case Study Hyundai

Case study: Hyundai

1. Comparative advantages

The major comparative advantages that led to Hyundai’s success include relative efficiency of country that possess all the essential infrastructure and rich market, natural advantages such as fertile land and favorable climate. The choice of low cost labor and acquisition of high quality inputs enhanced the outputs and profitability.

Competitive advantages

Speed is certainly a unique factor that ensured customer satisfaction. The launch of Genesis has increased the competitiveness and transformed the company as a top tire manufacturer. The ability to make huge profits even during recession is a competitive advantage that has proved the sustainability and quality of the cars.

2. According to factor proportions theory, the country exports abundant and inexpensive products and imports products that make use of the scarce things. In case of Hyundai, the country has exported the abundant Hyundai cars that could capture the market and increase the productivity and Hyundai tried to export Excel which is an economy car. On the other hand, the raw materials and required technologies for Hyundai were imported. In this case, Hyundai appears to exemplify. However, it contradicts during the cases of crisis and recession where it still made profits and the theory did not work. Internationalization of Hyundai has relied on exports rather than imports which mean it had decided to market and not to make use of scarce things.

3. Hyundai has set a firm position in the national as well as international market. With respect to Porter’s diamond model, the factors that have contributed to the existing position of Hyundai are discussed.

Factor conditions – Human resources, knowledge resources and basic infrastructure that helped Hyundai in positioning as a leading manufacturer

Firm strategy, structure and rivalry – Hyundai has strong strategies for internationalization. The rivalry is strong due to high competitiveness....