Expert answer:Answer question. About HyunDai
Answer & Explanation:HYUNDAIHyundai’s strategy is to sell more cars for less than the competition. With the rest of the auto industry in free fall being off 21% from the previous year, Hyundai’s U.S. sales had increased 8%. Michael Brown, Vice President of Atlantic Hyundai’s parent company, a dealership network, indicates that Hyundai has the hot hand with an aim to dominate the marketplace. John Kraftchick, President and CEO of Hyundai Motor American, is interviewed saying that Hyundai’s chairman initiated the move to achieve the highest level of quality in the industry in 5 years. With a quantum leap in quality, Hyundai has new models that are, now, well-equipped, fuel efficient, and stylish. James Bell, analyst for the auto industry’s Kelly Blue Book, reflects upon the first 1986 Hyundai to enter the marketplace. He concludes that Hyundai retrenched and came back stronger by curing their reliability and durability concerns with longer warranties and a blitz of ads that gained consumer public attention. The Toyota downfall is an advantage for Hyundai but Hyundai, too, experienced its own recalls. The Vice President for Hyundai Motor America concludes with their concerns that Hyundai may experience the Toyota woes but it has been a wakeup call. John Kraftchick provides a sneak peek of the newest Hyundai flagship automobile that will compete with the BMW 7 Series, Mercedes Benz S Class, Lexus LS, and those cars that cost $70,000 to over $100,000 dollars. He concurs that Hyundai stands for something different rather than price. While Hyundai remains reactive, they are concerned about vehicles from India, Vietnam, China and other upstarts just like Hyundai once was.Also check out http://www.hyundaiusa.com/ and http://worldwide.hyundai.com/Describe Hyundai’s competitive behavior.What kind of competitive dynamics might you expect from Hyundai and other automakers?Is Hyundai involved in multimarket competition? Why or why not?What impact will market commonality have on competitive responses in the auto industry?Can Hyundai be identified as a late mover? If so, why? And what consequences should they be knowledgeable of?Example of Hyundai case 1.docx Example of Hyundai case 2.docx Please read the two case files. The answer(Argument) should be similar with the two files.
example_of_hyundai_case_1.docx
example_of_hyundai_case_2.docx
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Describe Hyundai’s competitive behavior.
Competitive behavior is the set of competitive actions and responses a given firm takes to build or
defend its competitive advantages and to improve its market position. The Hyundai Motor Co. is
South Korea’s largest automobile manufacture. Hyundai recognizes the importance of automobiles,
so it tries to become the customers’ lifetime companion. It wants to sell more cars for less than the
competition. In order to have a lower price on their car, it has to reduce the cost. Hyundai does
many researches from technology to philanthropy; it is looking for a better way to develop its cars.
Hyundai’s brand slogan is New thinking and New Possibilities. From this slogan, we can know that
Hyundai always wants to have better technology in order to reduce the operation costs. It always
wants to have a good relationship with customers. The first step is to lower the prices. It also has
a 10-year/100000 mile warranty on each and every car. These are its competitive behaviors in order
to achieve their goal and increase the competitiveness.
What kind of competitive dynamics might you expect from Hyundai and other automakers?
Competitive dynamics is all competitive behavior, which is the total set of actions and responses
taken by all firms competing within a market. Cars are expensive, and the life of a car is long.
Customers will not buy them everyday, and lots of factors will influence the sales of car industry.
The first factor is the price of gasoline. When gasoline’s price is increasing, the sales will decrease.
The whole car industry tries to develop the technology in order to reduce the oil consumption.
Also, many auto companies are investigating some resources that can replace the gasoline. For
example, electro mobiles are famous now. Second, there are many different companies are
producing different types of cars, so the competitiveness is strong in this industry. Customers will
buy river cars and test them a lot. Cars are expensive, so it is not easy to make a decision.
Companies should let the customers realize their products are better than competitors’. Hyundai
is pursuing the luxury at low price. Hyundai needs innovation on its products. For example, it
redesigned Sonata and increase in research and development. It also has new driven train
technologies. Hyundai has its own technology. Customers love this technology, so they will
purchase. Also, other auto companies have their unique technologies. In the automobile industry,
the only thing is to develop new technology in order to create its own competitive advantage.
Is Hyundai involved in multimarket competition? Why or why not?
Yes, Hyundai involved in multimarket competition. Multimarket means firms competing against
each other in several product or geographic markets. Hyundai is selling their product almost the
whole world. They divided the world into six parts, North America, Central & South America, Asia
& Pacific, Europe, Middle East and Africa. Hyundai is a Korean company, but half the cars are sell
in U.S and made in the U.S. Asia and American are two main regions for it. Except the geographic
markets, Hyundai also has many products. It has several series cars. Also, they have SUV, ECO and
commercial cars. Because of the product diversification and several geographic markets Hyundai
involved in multimarket competition. Hyundai also think highly of the international market instead
of in its own country.
What impact will market commonality have on competitive responses in the auto industry?
Market commonality is concerned with the number of markets with which the firm and a
competitor are jointly involved and the degree of importance of the individual market d to each.
In my opinion, the major impact is the market overlapping. The auto industry has a great influence
on this. Cars have a long history. After this long history, the cars are similar in the recent years. The
differences among those auto companies are the interior design and technology, which is hard to
figure out by customers. Because of this auto companies need to find their abilities to compete in
the same market segments. They cannot avoid the competitiveness. Advanced technologies are
general in the recent years, especially in the auto industry. What those companies need do is
developing more advanced technologies; otherwise they will lose the competitiveness. The second
impact is the awareness and motivations. Market commonality limits people’s ideal, so it is hard
to think about a new technology. When a company can figure out a new technology, which is
different from the recent cars. Customers can also receive this new technology, this company will
have a great success. However, the market commonality slows down the development of new
technology.
Can Hyundai be identified as a late mover? If so, why? And what consequences should they be
knowledgeable of?
Hyundai can be identified as a late mover. A late mover is a firm that responds to a competitive
action a significant amount of time after the first mover’s action and the second mover’s response.
A late mover will achieve the less success than the first and second mover, but it has the less risk.
Hyundai is a later mover because it did not produce the first car in the world. It created the first
car called Cortina in 1967, which is really later than the first car. In the Asian market, Toyota is in
the lead of the market. Hyundai is following Toyota in the first time. But when the downfall of the
Toyota, it is the opportunity for the Hyundai. However, following others cannot get a great success.
Hyundai is facing with the huge challenge. The first consequence that Hyundai needs to do is the
brand recognition. Hyundai and Toyota are similar, and they have similar strategy, so it needs to do
the innovation now. Hyundai is hard to compete with those luxury cars, so it has to insist its brand
image. Continuing input capital for R&D, and increase its competitive.
Describe Hyundai’s competitive behavior.
Hyundai set up their brand image, get people to know about them. They use assertive
advertisement to get customer attention. Also, Hyundai pay attention to their product quality.
Hyundai try to achieve durability and reliability. Also, for my opinion, Hyundai is using a “fast-cycle”
market. Because in the automobile market, it is very easy to imitate and reverse engineer any
innovation that it done by others. So, one company has to keep up, not only with the competitors,
but also with one company’s own products.
What kind of competitive dynamics might you expect from Hyundai and other automakers?
I think the competitive dynamics in Hyundai and other automakers is fast cycle market. Nowadays,
any technology can be copied or reverse engineered. It lead to the product cycles very short and
makes it imperative for the manufacturers to keep on innovating and introducing something
different to maintain a competitive edge. Base on case, Hyundai enter U.S and international market
very late, because they have to play catch-up with their main rivals from Japan. They also had to
evolve rapidly and come up with their own unique signature in the newer models that they
introduced. Today, automakers are in every model segment of the market. They are in the compact
hatchback range, saloons and luxury cars. However, for Hyundai, they make luxury at low price.
Is Hyundai involved in multimarket competition? Why or why not?
Yes, Hyundai is involved in multimarket competition. For multimarket competition, Hyundai now
sell their cars and other product to international market. Also, Hyundai sale several product, such
as different car, compacts, sedans, crossovers, and performance/premium. Also, most automobiles
in a particular market are very similar in the appearance and features. Market commonality and
resource availability that makes competitors sort of independent on another.
What impact will market commonality have on competitive responses in the auto industry?
The impact of market commonality is intense rivalry, lead to compete in the same market segments.
Market commonality give rise to market overlapping. Since the automobile industry is now spread
globally, these markets could be geographically separated or could just be markets for different
classes of vehicles in the same geographical market. Also, the market commonality reduces the
ability to competitive respond, and the limitations in resources, motivation and basic ability are
factor which affect the competitiveness in such market.
Can Hyundai be identified as a late mover? If so, why? And what consequences should they be
knowledgeable of?
Yes, Hyundai can be identified as a late mover, parts supplier and assembler. Hyundai enter the US
and international much later than other auto company. Now, they being recognized as a major
force in the world automobile market. Also, consumer in these market are very cost conscious and
Hyundai has been able to meet the demands of this segment. Also, after the Toyota downfall,
Hyundai get the advantage to develop their own business. Hyundai face new challenges today, its
sales are below those of its major Japanese rivals, yet they cannot be ignored in any of the many
geographical market. So Hyundai may need to increase their brand recognition, innovation for their
production, develop low cost luxury, and input capital for research and development.
References
https://www.hyundaiusa.com/build-your-hyundai/
https://www.hyundaiusa.com/new-thinking/innovation-technology.aspx
https://www.hyundaiusa.com/new-thinking/quality.aspx
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