Blog 8: Global market

As globalization is progressing, companies enter to other countries’ market actively. Entering to another country’s market should be considered deeply. Before entering to other market, many things should be considered, for example, culture, consumer behavior, economics, political environment and so on. Even though a company got succeeds in local country, it can be failed in other country market. There is one Korea company which gets a huge success in not only Korea, but also foreign countries, Hyundai (Hyundai Motor). Hyundai is one of the largest automobile manufacturers in the world. It has manufacturing presence in the US, China, India, Czech Republic, Turkey, Brazil and Russia, besides South Korea. It is reported that the latest revenue is $38,897,862,543. How can Hyundai succeed in foreign countries?

The first reason of Hyundai’s success is the introduction of car production modularization. The modularization in the part of car production means that suppliers make module, and after that, the complete vehicle company assembles that. In the complete vehicle company’s view, they can need less time and less amount of component by simplifying the progress of production. And they also can lower the cost of production. And the second reason is entering an emerging market actively compared to competitive. Hyundai established their factory in India in 1998. Hyundai chose the emerging market where there was no competition instead of ‘Red ocean’ like USA. In the early of 2000s, Goldman Sachs started to use the term ‘BRICs’; Brazil, Russia, India and China. While other competitors were interested only in USA and Japan, Hyundai entered to emerging countries, so they could get stable profit.

The third reason of Hyundai’s success is the developing policy that focuses on designing. From the early of 2000s, Hyundai benchmarked Volkswagen because Volkswagen’s sales were gradually increasing. Volkswagen thought that competing with Japanese car companies in the part of production and quality was not possible. So they decided to keep their strength, quality, and choose ‘blue ocean’, design. Hyundai learned from Volkswagen’s lesson, so they also decided to focus on design. They employed Peter Schreyer, who was Audi’s designer. It was really big issue. Compared to Volkswagen, Hyundai is not enough yet. They should try hard, but it helps global sales.

Hyundai still has some problems, like quality or leadership in their industry. But they are trying hard. They did some online marketing, for example, Hyundai's 2014 FIFA World Cup sponsorship campaign,"#BecauseFutbol," drew more than 7.5 million fans and on Twitter the brand benefited from more short-term chatter than headline sponsor adidas. And also in offline, Hyundai's World Cup Fan Parks have engaged over 5 million potential customers in Europe alone. And in its native Korea, Hyundai opened Hyundai Motor Studio, its first brand experience store-including a showroom, automotive library, café, and a children's play center. As a result of these efforts, brand awareness of Hyundai's product attributes-like its "fluidic sculpture" design-and the kind of brand loyalty that comes from an emotional connection are becoming key drivers over price. 

References: http://web.b.ebscohost.com/bsi/detail/detail?sid=cc5f003e-008b-46b0-89a7-03f71024c242%40sessionmgr111&vid=4&hid=115&bdata=JnNpdGU9YnNpLWxpdmU%3d#db=bth&authdb=cix&AN=2557129&anchor=Industry

http://bestglobalbrands.com/2014/hyundai/

Photos from: http://www.ebay.com/itm/Brand-New-HYUNDAI-3D-Car-Logo-Keyring-Metal-Key-Chain-Santa-Fe-Accent-Sonata-/221130748045

http://press.kia.com/eu/press/corporate/13_01_02_schreyer%20appointed%20president%20of%20kmc/