Market Entry Strategies Case Study

Hyundai in the US: Prospects and Perils

OR

Abstract:
Hyundai Motor Company, one of the top car manufacturers of South Korea, had entered the US market in the mid 1980s through the establishment of a subsidiary named Hyundai Motor America. The company launched several successive models in the 1990s, namely Excel, Sonata and Elantra, as part of its marketing strategy along with lower prices and good customer service. These cars were very popular and largely contributed towards Hyundai's success in the US. However, in 1992, a great number of Excel models were recalled due to a fault in its service breaks, hydraulic pedals and linkages, which led to a decline in sales and loss in credibility for the company. To revive its popularity, Hyundai reinforced its mission statement of ‘Pursuing Happiness Through Cars’ and concentrated efforts to improve the design, quality, manufacturing and marketing of Hyundai cars in the US. It introduced several new models each year and priced them lower than its competitors. It also implemented marketing strategies like ‘America's Best Warranty’. By 2005, it became the 4th largest foreign automaker in the US market, the world's biggest car market. Hyundai also aims to become one of the top five car manufacturers in the world by 2010.

Pedagogical Objectives:

• To discuss the marketing strategies implemented by Hyundai in the US and the challenges faced by the company in the matured US car market.

Keywords : Global car manufacturing industry; South Korean car industry; Hyundai’s marketing strategy; America’s best warranty; Hyundai’s management systems; JD Power and associates; Dealer recognition programme; Product line extension; Customer service; Automotive supply chain; Global export hub; Full-line automotive distributor; Fuel-cell technology; Customer retention survey; Market Entry Strategies Case Study; Learning curve and product life cycles

Contents : 
Backdrop: Hyundai Motor Company
Hyundai in USA
Challenges at the Forefront for Hyundai
R&D Network Centers of HMC
Historical Financials & Employees of HMC
Management Systems at Hyundai Motor Company
Sales of Hyundai Motor America
Hyundai Advantage™ - America’s Best Warranty
Operations and Services Networks of HMA