Hyundai Heavy Industries SWOT and PESTLE Analysis
ID : 52556253| Apr 2023| 15 pages
COMPANY PROFILE -Hyundai Heavy Industries
Business Sector :Heavy Equipment and Engineering
Operating Geography :South Korea, Asia, Global
About Hyundai Heavy Industries :
Hyundai Heavy Industries Co., Ltd was founded in 1972 by Chung Ju-yung. It has its headquarters located in Ulsan, South Korea. It is currently the world’s largest shipbuilding company. It was founded as a division of the Hyundai Group; it was separated from its parent company in 2002 to become an independent entity. It has four core business divisions: Shipbuilding; Offshore & Engineering; Industrial plant and engineering; Engine and Machinery. The company name is derived from the Korean term 현대 (hyeondae) which means "contemporary". This name acts as a marker for the vision of the company which is to be “A Leader in the Global Robot Industry”. The company’s mission is “Developing new technologies and products, Ensuring high performance and quality, Securing cost competitiveness”. The company has around 27,409 employees on its payroll as of early 2018.Hyundai Heavy Industries Revenue :
11,921.55M USD – FY ending Dec 2018
13,683.05M USD – FY ending Dec 2017
19,221.37M USD – FY ending Dec 2016
Competitive Analysis of Hyundai Heavy Industries
SWOT
PESTLE
The SWOT analysis for Hyundai Heavy Industries is presented below:
| 1. High Market Share 2. Strong Global Network 3. Strong Employee Base 4. Advanced Technology and R&D | 1. Exposed to risks due to fluctuations in foreign exchange rates |
| 1. Demand for eco-friendly dual fuel engines and equipment 2. Smart Ships 3. Infrastructure projects | 1. Overall reduction in global demand 2. Global Economy |
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Detailed SWOT Analysis of Hyundai Heavy Industries
Strength
1. High Market Share: Hyundai Heavy Industries’ shipbuilding division is the world’s largest ship building company. It is the leader of the global ship building industry with a total approximately 16.9% share. Out of which Hyundai Heavy Industries Co., Ltd. has 7.2% share, Hyundai Sambo Heavy industries Co., Ltd has 5.5% share, and Hyundai Mipo dockyard Co., Ltd has 4,2% share. The shipping division touched the 10 million DWT production mark in 1984, milestone of 20 million DWT in 1988, 30 million DWT in 1991, 40 million DWT in 1994, in 1997 it reached 50 million DWT, and in 2005 touched 100 million DWT mark. In 2017 it touched 200 million productions.
2. Strong Global Network: The shipbuilding division has a very strong global network. It has 12 working sites across 5 cities in Korea, and has a global network of 16 branches and 25 corporations across the globe. The division has delivered more than 2,150 ships to 320 clients across 51 different countries till 207.
3. Strong Employee Base: Hyundai Heavy Industries has over 25,236 employees, having around 16.3 years average of continuous service in the company. The employees are technically competitive and skilled. There are about 16000 people in production, R&D and management & administration. The employees are well trained and experienced, and are capable of supporting the clients and meeting the needs of the partners with latest and advanced technology. Also high retention of employees makes it strength of the company where the loyalty of the employees proves to be a great competitive advantage.
4. Advanced Technology: Hyundai Heavy Industries has the latest and most advanced technology to design and build modern, well equipped and reliable products which match the latest day requirements of the customers. HHI also manufactures submarines, naval ships, auxiliary vessels, of advanced designs. HHI aims to enhance it’s competitiveness as a global leader by further developing the technology in order to provide highest quality products. To achieve this HHI has established key tasks like strengthening sales, technology and cost competitiveness. HHI focuses on differentiated, advanced and robust technology.
Weakness
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TABLE OF CONTENTS
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Hyundai Heavy Industries SWOT and PESTLE analysis has been conducted by Navnika Rajan and reviewed by senior analysts from Barakaat Consulting.
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Hyundai Heavy Industries SWOT and PESTLE Analysis
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