Imagine you’re a business owner or a manager, and you want to evaluate the current state of your business. to make informed decisions. That’s where SWOT analysis comes in. It is a comprehensive overview of a business’s current state, which heflps develop a business strategy. Let’s say you’re the CEO of a company that produces electric cars and wants to analyze your business using SWOT analysis. You identify your company’s strengths, such as your Innovative technology, skilled Workforce, and loyal customer base. You’ll also identify your weaknesses, such as the lack of brand recognition, high production costs, and limited distribution channels. This is a comprehensive Hyundai Case Study that includes details about the inception of Hyundai, SWOT Analysis, business model, and more.
Then you look at the opportunities for your business, such as the growing demand for electric vehicles, government incentives for eco-friendly companies, and the possibility of Partnerships with other businesses. Finally, you look at the threats to your business, such as new competitors entering the market, government policy changes, and economic fluctuations. And mitigate threats. With this analysis, you can identify where your business is and where it’s going.
Hyundai Case Study – Foundation’s Story
Here’s how the story of Hyundai began: a poor but ambitious young man from a small village in South Korea stole his father’s cow and ran away from home to buy a lucky ticket. Once, he was a rich man, though he repaid his debt one thousand one times over presenting one thousand one cows to his country. In his father’s honor, Hyundai was founded by Zhang Yu Yung. He was born in 1915 in a village called Asan. Chung had six younger siblings, and his father was a farmer who expected Chung to take over the family business, but that was not what Chong had in mind, so he repeatedly fled home in pursuit of new opportunities.
He had to leave school at an early age to help his family by working on the farm; however, he couldn’t let his family’s condition toward his Ambitions. so at the age of 16, he decided to flee home along with his friend to seek brighter future opportunities and fulfill their dreams. They managed to find jobs as construction workers in the town of Kawann. Although it was difficult, he enjoyed the independence he had gained. And he soon found himself passionate about civil engineering.
However, he didn’t get the chance to pursue this passion. He was at his job for two months. Then, his father found out about his whereabouts and took him home. This didn’t stop him, though. Once again, when he was 18, he ran away from home to provide a better life. But continuing to work as a farmer in that small village; this time, he stole a cow from his father, sold it, and used the money to buy a train ticket to Seoul. So he hopped on the train and left Assan. He planned to start a career as an accountant in Seoul. Therefore, he went to a local bookkeeping school. During that time, he read all about great men who had managed to make themselves. A name despite being born into a low-income family, his favorite was Abraham Lincoln. His father once again found him. He was thus taken back to his hometown, luckily enough for him.
His father eventually let him go after witnessing what burning desire Chunk had in his heart. To see the world. From 1935 on, Chung dipped his toe in different Waters. He worked as a dog worker for a while, then learned to ride a bike to deliver rice with dedication. He had he became the owner of the shop within two years. Soon, the rise in trade was forbidden in Korea. Upon this challenge, Chung began searching for another job that did not require large Capital but guaranteed High returns. That’s when he opened the car repair shop in Seoul in 1941.
The second world war Korea was not in fine shape, and with the outbreak of the Korean War soon. After that, South Korea was in Rubens Chung’s project along with the government in the country’s Rejuvenation. Chung picked the name Hyundai Engineering and Construction Company for his business. The word Hyundai meant modernity. Therefore, the next step he took over a decade later was founding the Hyundai Motor Company in the late 1960s. One year later, its first model was introduced, the Cortina.
Hyundai collaborated with Ford Motor Company to manufacture this Car with the rollout of the Cortina. Chung was highly encouraged to build a powerful and independent Automotive Empire. His dream was to mass-produce vehicles for the South Korean public. So, in search of bright Minds to manifest his dream, he brought in several British automotive executives and Engineers. George Turnbull. the former managing director of Aston Morris, was one of the people who joined Chung’s crew. Together, they designed a pony and released it to the markets in 1976.
It was designed with the help of British engineers, styled by Georgette, Giorgiaro from Italy, and provided with a Mitsubishi engine from Japan. Initially, the pony was launched as a four-door sedan, a pickup version. A station wagon and a three-door hatchback were added to the Car in 1976, 1977, and 1980. The 1980s was a time of Rapid expansion for Hyundai as it began promoting its prized Creation in the Global Marketplace, except for the U.S., where the pony would not pass emissions. as standards in South America, Canada, and Europe accepted the Car with open arms while the expansion was thriving.
It did so to Pony Axel, an upgraded version of the pony that became the best-selling Imported Car of 1986. Hyundai did not stop there. Over the next few years, the company made huge advances in design and technology.
Chung’s death in 2001, the company faced a huge embezzlement. Chong Yoo Jung, a man with the determination to give his family and his country a new perspective, died of natural causes at the age of 85.
In 2002, Chong Monk succeeded his father and became the head of Hyundai. He was arrested in 2006 and charged with 106 million U.S. Dollars embezzlement. Several other Executives have replaced him to this day and, fortunately, have brought such disgrace to the company by the turn of the Millennium.
From 2010 onwards, Hyundai has turned its attention towards environmentally friendly vehicles and technology in 2021. Additionally, there is a center in California where designs are developed for the United States. While many things have changed, Hyundai’s main plant is still in Olsan.
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- Safety Rating:
Hyundai cars are well equipped with a safety star rating. Now, I will talk about how the Global NCAP rating is given. So, at first, Global NCAP has done that. They’ve divided the dummies into six different parts for the assessment. They’ve set different criteria to test the impact for all parts individually. So, the Criteria for the head is named HIC15, which is Head Injury Criteria fifteen. In which it is seen that How much impact has come on the head in fifteen milliseconds of the crash. If its value comes above seven hundred, the chances of head injury are high, and if it is below five hundred, then the head will be safe.
Now, I will talk about the Neck.
So, in the Neck, they determine how much tension is produced while crashing the Car. In the chest, it is seen how much compression has appeared during the crash. And if the compression is below 22 mm, then the Car is assumed to be safe. If it is above 42 mm, the car is assumed to be unsafe. And you will be injured if the accident happens. In The knees, it is seen how much compression has appeared after the crash. And if the compression is almost equal to 6mm, then it is assumed that the Car is very safe.
If it is above 15mm, the car is unsafe, and the knee can be broken if an accident occurs. And when it comes to the foot portion, they put the foot of dummies on the accelerator’s pedal. Then, they measure how much dummies foot has displaced while in the crash, and if the displacement is around 100 mm, then the Car is safe. If the displacement is measured around 200mm, the foot can be broken in the crash. And after all these assessments, they give the point to the Car for all the body parts.
The given score ranges from zero to four, and if the rating of an individual body part is very bad. Then, In NCAP, the Car will be provided a zero rating for that body part. If compression doesn’t appear in the chest during the crash for that body part, a four-point rating will be given to the Car. Then, you will find two dummies on the left side of the report. The first dummy has a steering wheel at the front that is made up for the driver. The second dummy is made for the passenger. In these dummies, different body parts have been indicated with different colors: Green used for safety purposes. Red is used for danger, and Brown and yellow are above average.
- Research and Development:
Hyundai spends millions of dollars developing electric and hydrogen-powered cars. But we must understand the value of R&D. So what is research and development? Research looks at a firm’s activities, or maybe it is an organization focused on creating new ideas and products. Research is typically more focused on more distant things with a longer time horizon.
Rather than, you know, development, which is a lot more focused on fixing existing problems. It is fixing problems with products or services that are really about products. These services are already commercialized and are about to impact the current products. You have certain services to make a little bit better, whereas research is focused on that more long-term thing.
That sometimes has little practical implications. Immediately, it might have practical implications. It might, but sometimes it doesn’t have any practical implications. Development department, what you’re trying to do within research is problem-solving where you’re going. You are trying to solve existing problems and develop new solutions to problems that might arise. We know that there’s a problem in the Marketplace. So maybe a customer or a supplier or something like that understands that there’s an actual problem going on, and then you’re trying to solve that problem for them. They can do this thing better. The goal is to leverage what the company is already doing.
- Hyundai needs a better portfolio as a brand size. It only has Kia as a subbrand, which leads to fewer sales than competitors like Ford, which has more than ten different portfolios in its basket.
- The company has a very low sales figure, less than 9% in the USA. It doesn’t have its presence in a country like Japan, which is a major setback for the country.
- Hyundai’s net profit has declined over the last five years.
- The company has damaged its reputation while recalling car models like Sonata for fixing a few bugs. It articulates poor management over the car building.
- You must have heard that India’s GDP is growing very fast, 7-7.5%, but Western countries, for example, Germany and the UK, are slipping into recession. And the inflation in India is somewhat controlled. We are still in need of inflation. Prices are not escalating. That is what the official data tells us, but unfortunately, in countries like Germany and the UK, inflation has become a very big problem now.
- Hyundai has a great R&D facility, translating into frequent model release cases for cars.
- The global fuel price is currently low, meaning more people will buy cars.
- Hyundai faced traditionally increased competition from Ford, Toyota, Volkswagen, etc. It faced issues from companies like Tesla, which provide electric cars for better value in the long run.
- The Korean Won rate is rising, which means the company faces great expenditure in the future.
- Many global governments are stressing using battery-driven cars to control pollution; therefore, traditional combustion engines threaten global warming as governments change environmental rules yearly.
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- Key partner: Key partner people will get the wedding you need for any small business. Especially the one we just started a day important to create partnership partners. Now, independent supporters contribute legally to your business’s success. Making you take time to identify these kinds of people carefully will help you increase your levels. They combine money with you to expand your business and make your market stretch. Those people will get waiting to draw customers to call your business. Hyundai servers as a key partner in the market. They own a few affiliates, like
- More than 34% of Kia motors
- Luxury brand representation: Genesis motors
- They develop parts, components, and technology for the distribution network
- Car design: Imagine your first day in the car design studio. Imagine you made your dreams come true, and your hard work paid off. Now, you can work as a full-time professional card designer. You sit next to experienced designers; you see all the secret projects in the studio. In a car design studio, you live a couple of years ahead of the rest of the world because you create the upcoming products. You design the future of this brand. You shape the upcoming brand: new cars. You show your dream and vision to other professional design managers and chief designers. You may be on the same team as a designer you know from official videos or the official sketches you admire. You may have already contacted them on social media, and now you’re on the same team. You can prove your creativity, actively work on upcoming designs, and imagine how it feels. It is very important to imagine how the first day of your dreams come true. There are also some supporting activities.
- Manufacturing and distribution design
- Production of metals
- Quality control of electronic
- Banding with graphics
- Marketing of new model vehicles
- Sponsorship of sales forces
- Value Proposition:
When you understand your customer, you understand what your customer values. Why do we say value proposition? It is because you get to understand what a customer truly values. Now, how do you create a brand value proposition? The first thing is that you start with the customer. You can’t create a product and then find a customer. You could find a customer and then create the product. The next step is to ask what a customer’s pain points are. See, every customer goes through inconvenience in marketing jargon. We call it friction. What pain points do you go through, and how can you convert pain into the game? And great brands and great products reduce pain and increase gain for customers. I can give you an example.
For instance, let’s take Uber. They have a great tagline; incidentally, it is the smart way to get around. See, when you go for a taxi, what is the pain associated with the taxi? One is you need to know the driver. Secondly, you’re going to need to figure out how much they’re going to charge you.
Thirdly, there is no guarantee of safety. Imagine going into a new city. You’re already a little scared you’re going to New York, big bad New York or Chicago, and you’re a little worried, so you have this risk with a driver or a tax. What if you get mugged or robbed? You’ve got all these pain points. This is just for taxis. So what did Uber do? It eliminated all these pain points.
- You get on this Uber app, and in seconds, you know who the taxi driver is, and you know whether the driver is rated highly or badly, and straight away, you know the quality of the driver. You don’t know the quality of the Car. Is it a Lexus, or is it a Toyota bio? Is it a Mercedes? You know what kind of Car is coming to pick you up. Here is the great news: the driver knows where you’re going. You don’t need to show the driver the way. You know the amount of charge you are going to give the driver. Hyundai provides a value proposition through
- New tech in the cars
- Hybrid and battery-powered cars like IONIQ 5 and KONA Electric
- Low servicing charge
- Customer relationship: Hyundai maintains great relationships with customers with few techniques.
- Assisting them when they need
- Building awareness with regular ads in the visual media
- It builds a reputation in the market with prompt services
- Customers have their trust in recommending car models from mouth marketing
- The company holds sponsorships with several social responsibility and festive occasions.
- Customer Segmentation:
Segmentation contributes to knowing your customers and identifying their needs that they might not be aware of. By grouping, you can determine which features or characteristics make up their personality. And that helps you provide better customer service for everyone, consistently. Understanding customer groups is essential in increasing the number of customers and generating more revenue. With Customer Segmentation, organizations can effectively allocate resources and increase their upstream/cross-sell opportunities. It also helps them expand their go-to-market approach, depending on the needs of each group within its client base. Why customer segmentation? Organizations can use the power of personalization and segmentation to craft tailored messaging for a specific set of audiences. Some of the other core advantages are
- Product development:
It enables companies to discover the preferences and needs of different customer groups. This information can offer products that their customers will accept well and increase plans’ profitability.
- Customer retention:
Maintaining profitable customer relationships is a good practice. It can be easy to achieve customer loyalty when you know what they like and how often they contact you, so it’s crucial for its bottom line and longevity as an organization.
- Customer acquisition is an excellent opportunity to discover the best target market. Knowing who your customers are and what motivates them will make finding new prospects through their common interests easy.
Hyundai has created market segmentation in two ways: mass market & business carriers.
- Promotional Channels: We have come to the last part of promotional methods. Hyundai has brand representation in similar ways.
- Dealers and Retailers
- Garage as repair shops
- Location-based websites with different language
- Social networks
- Running vehicles
1. Are Hyundai and Kia the same company?
No, Hyundai and Kia are not the same company. Kia is Hyunda’s sub-brand, Hyundai is the parent company. Kia is operating independently in all the markets.
2. Are Hyundai engines reliable?
Yes, Hyundai engines are reliable for long-term use and robust use off-road. The engines are made from hi-revved coil for excessive load carry.
3. Are Hyundai spare parts expensive?
No, Hyundai spare parts are not expensive because all the parts are available in the market through dealers and retailers. The parts are not cheap because of high-quality materials. They are moderately priced.
The Hyundai case study is very informative for a compact view quickly. However, it is not written from a technical point of view. The business model is described in a general language for greater understanding. The facts and figures used in the article are changeable when you read, as they only give a basic idea. Please mention which opportunities you know are the best in the coming years for Hyundai.