Hyundai Motor Company SWOT & PESTLE Analysis

Strengths

1. Strong Research & Development wing with 7-step process for designing: Hyundai commits to innovation by focussing sincerely on R&D. Hyundai employs a 7-step process for design: Design Planning; Sketching and Rendering; 1/4th scale modelling; digital modelling; virtual reality presentation; 1:1 clay modelling and emotional & colour design. Hyundai Motor Company has ideated following design philosophies to incorporate cutting edge technologies in its design. Fluidic sculpture which aims to break the barrier between art and automobiles to create advanced designs by incorporating energy and dynamism. Human-machine interface which aims to boost emotional satisfaction of the consumers by making the interiors more interactive, ergonomic and simple to use. Imagine is a collaborative design philosophy adopted by Hyundai to integrate design philosophies of designers across countries like Korea, Japan, US, China, Germany and India and transforms designer’s creativity to blossoming designs

2. High conformance to safety standards and bagging 5+ rating for safety standards: Hyundai Motor Company has conformed to improved safety standards to drive road safety. Autonomous Emergency Braking, Vehicle stability management, Tyre pressure monitoring system, Smart high beam assistant, Dynamic bending lights, Blind spot detection, Advanced smart cruise control, Lane keeping assistance, Lane departure warning system, Hill start assistance control, Electronic stability control. Hyundai motor company has also won several awards in conforming to safety standards to the highest level. Some of its models – Santa Fe; Sonata; Tucson & Genesis has been awarded “Top safety Pick+” in 2016. Hyundai has also won 5 Star ratings for- “National Highway Traffic Safety Administration” in U.S. by Sonata and “The European New Car Assessment Programme” in EU by Tucson.

3. Huge global presence in over 200 countries: Hyundai Motor Company has huge global presence in automobile markets in 200 countries with a strong network of more than 6000 dealers worldwide. In January 2017, HMC has a market share of 4.1% in United States registering a sales figure of 46,507 units. HMC has clocked sales of 35000+ vehicles in European region during the same period.

Political

1) US protectionism measures for business opportunities: Hyundai Motors is expected to face huge challenge in keeping its products price competitive in US market due to new presidential measures have clamped down on the cheaper outsourcing facilities. Thus, Hyundai motors should ramp up investment in the Alabama plant in US for production of vehicles for the US market. The price increase due to expensive manufacturing in US is likely to reduce passenger vehicles sales in the country.

Economic

1) Surge in global economy due to increased affordability of people coupled with favourable factors of production: Global economy is expected to grow by 3.5% in 2017, mostly driven by US economy which is expected to grow by 2.25% in 2017 due to various protectionist and domestic employment friendly measures taken by President Donald Trump. Europe is expected to grow by 1.5% in 2017 which is consistent with labour market improvement for the last few years. Among the BRICS countries, vehicles fleet in Brazil is expected to grow by 4.6% CAGR till 2020. China expects to hit growth target of 6.5% in 2017. It is mainly due to rising disinflationary pressures, reduced employment, easing fiscal policies. In India, automobile sales including both domestic as well as exports are registering a growth of 9.23% (domestic) and 16.2% (exports). Thus, good fortune is expected for the automobile companies and thus, Hyundai can expect an improved demand for its products in Europe.