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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.