Competitiveness Analysis of Hyundai Motors and Toyota Through the Generalized Diamond Model

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THE COMPETITIVENESS ANALYSIS OF HYUNDAI MOTORS & TOYOTA
(THROUGH THE GENERALIZED DIAMOND MODEL)

Group 2# Kim, Byung Kyun / Kim, Do Hyoung / Kim, Soon Mi / Lee Yong Joo / Lee, Joong Hyun / Son, Dong Jin / Song, Ha Bong / Yoo, Chung Sik (ABC sequence)

PROJECT BACKGROUND

“Our automotive business in the global market is stable, but the group needs businesses that can compensate for uncertainties of the industry,”
- Hyundai Motor Group official -

Recent quarterly results of Toyota that shows that it earns more than previous was impressive because the result was achieved despite of the world’s decrease in automotive sales and strong yen.

In order not to lose the opportunity of grabbing the initiative of Hyundai, we tried to analyze current situation and draw a meaningful conclusion for Hyundai to survive by utilizing Porter’s Diamond Model.
Also, we tried to derive the implications based on the result of analysis.

KEY COMPETITIVE FACTORS OF AUTOMOTIVE INDUSTRY

Chance

S.S.R. (Firm strategy, Structure and Rivalry)

F.C. (Factor Conditions)

Generalized Diamond Model

D.C. (Demand Conditions)

R.S.I. (Related & Supporting Industries)

Gov.

* The 4 main factors are in the dynamic position of mutual influences, and the external force majeure such as free trade agreement and war (Government) / natural disaster are considered (Chance)

PRECEDENT STUDY OF SUB COMPETITIVE FACTORS

S.S.R. Considering specialized and advanced factor that competitors cannot catch up with, as well as basic quality of labor work force and capital strength and research & development

R.S.I. Competitiveness goes up as the competitiveness of related and supporting industries Is heighten along with the automotive affiliations and clusters

COMPETITIVENESS OF AUTOMOTIVE FIRM

D.C. Put importance on automotive consumers’ sophistication rather than size of a market. Innovation of firms is likely To increase depends on the market growth and clutter

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