The global automotive industry is a highly diversified sector that comprises of manufacturers, suppliers, dealers, retailers, original equipment manufacturers or OEMs, aftermarket parts manufacturers, automotive engineers, motor mechanics, auto electricians, spray painters or body repairers, fuel producers, environmental and transport safety groups, and trade unions. The automobile and automotive parts & components manufacturers constitute a major chunk of automotive industry throughout the world. The automotive manufacturing sector consists of automobile and light truck manufacturers, motor vehicle body manufacturers, and motor vehicle parts and supplies manufacturers. United States, Japan, China, Germany and South Korea are the top five automobile manufacturing nations throughout the world. The United States of America is the world's largest producer and consumer of motor vehicles and automobiles accounting for 6.6 million direct and spin-off jobs and represents nearly 10% of the $10 trillion US economy. Automobile is one of the important industries in the world, which provides employment to 25 million people in the world. Overview
The main purpose of this research report is to compare the global strategies which Hyundai Motors and Ford utilize in managing their international automobile business. The firm I use as my "base” firm is Hyundai Motors, while Ford is the "competitor". I would like to illustrate where Hyundai Motors stands compared to the competitor in terms of managing its 1) Global integration/ efficiency 2) national responsiveness 3) worldwide learning to grow their international business as a transnational firm. At the end, I could possibly find out the competitive advantage of Hyundai Motors by this and develop a recommendation for Hyundai Motors to do a better job than its competitor in the automobile industry.
Hyundai Motors *All data in this section provided by Hoovers.com South Korea's leading carmaker, Hyundai Motors produces compact and luxury cars, SUVs, and mini vans, as well as trucks, buses, and other commercial vehicles. The company re-established itself as South Korea's leading carmaker in 1998 by acquiring a 51% stake in Kia Motors (since reduced to about 34%). Selling cars in the US since 1986, Hyundai Motors started selling its heavy trucks stateside in 1998. Hyundai's models for the North American market include the Accent and Sonata; models sold elsewhere include the GRD and Equus. Through its Hyundai Motors WIA subsidiary, it also manufactures machine tools for metalworking applications, such as horizontal machining, turning, and vertical machining. The Hyundai Motors has been in existence for more than 40 years and is one of the most diversified business organization and one of the most famous conglomerates in the world. The group is active in sectors such as shipbuilding, steel, petrochemicals, heavy machinery, electronics and aerospace. Hyundai Motors was established in December 1967 as an export-oriented light industry company in textile, footwear and wigs etc. Since then it has moved into heavy industries as well as into the automobile industry, and has managed to sustain its position as the largest automobile company in Korea. During the currency crisis in 1997, they went through a hard time but they managed to overcome the adversity through continuous exports and innovation within the enterprise. Since the company was founded, they pursued independence in technology from the developed countries so that they could strengthen their position mainly based on exports. Low labor costs and cost leadership enabled them to step into the international business arena. In 1974 Hyundai motors went for an IPO and got listed on the Korean stock exchange. Hyundai Motors achieved much in 2007 despite the challenging business climate. Numerous sections of the world media have praised Hyundai Motors' high quality. Improvements in customer...