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Hyundai Motor Company SWOT & PESTLE Analysis

ID : 52191153| Oct 2021

COMPANY PROFILE -Hyundai Motor Company

Business Sector :Automotive

Operating Geography :Asia, South Korea, Global

About Hyundai Motor Company :

Hyundai Motor Company is the 7th largest automotive company in the world. HMC was founded by Chung Ju-Yung in 1967 as a construction company initially. After several rounds of restructuring of business operations HMC has entered the automobile sector through designing and manufacturing of cars and buses. It is headquartered in Seoul, South Korea. The company provides services such as product development, design, sales, marketing, and consumer services to customers all across the world through its overseas plants in the U.S, India, China, Turkey, the Czech Republic, and Russia. It operates the largest automobile manufacturing facility in Ulsan, South Korea that has a production capacity of around 1.6 million units. Through more than 5,000 dealerships and showrooms, the company sells its vehicles in around 193 countries. HMC has approx. 71,504 employees globally as of May 2021. HMC operates in India with its well positioned subsidiary – Hyundai Motor India Limited.

Hyundai motors’ unique selling proposition or USP lies in providing budget friendly cars with world-class features. Hyundai motors’ vision statement reads, “Hyundai Motor Company is striving to provide freedom of movement to everyone by investing in mobility services, by building close relationship with leading mobility service providers and expanding our role beyond the automotive transportation sector. The company will play a pivotal role in global society’s transition to clean energy by helping make hydrogen an economically viable energy source.”

Hyundai Motor Company Revenue :


₩ 103,997,601 million – FY ended 31st December 2020
₩ 105,746,422 million – FY ended 31st December 2019

Competitive Analysis of Hyundai Motor Company

SWOT
PESTLE
The SWOT analysis for Hyundai Motors is presented below in a nutshell followed by detailed analysis
Strengths
Weaknesses
1. Huge global presence in over 200 countries
2. High conformance to safety standards and bagging 5+ rating for safety standards
3. Strong Research & Development wing with 7-step process for designing
1. Weak brand portfolio with only two major brands- Hyundai & Kia
2. Declining profitability by 12% in 2016 over 2015
3. Quality defects leading to huge vehicle recall in last 3-4 years
Opportunities
Threats
1. Improving global economy with expected growth of 3.5% in 2017
2. Technological advancements in manufacturing process as well as creation of new consumer demands
1. US economic developments due to new policies formulated by US president
2. Asian economic turbulences reducing market security
3. British economic downslide by 1.5% over last year
4. Growing criticism towards environmental pollution created by vehicles.
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Hyundai Motor Company

Strength

1. Strong Research & Development wing with 7-step process for designing: Hyundai commits to innovation by focusing sincerely on R& D. Hyundai employs a 7-step process for design: Design Planning; Sketching and Rendering; 1/4th scale modeling; digital modeling; virtual reality presentation; 1:1 clay modeling 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.

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Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

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Hyundai Motors SWOT analysis has been conducted by Anindhya Sadhu and reviewed by senior analysts from Barakaat Consulting.
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