One of the first strategies Hyundai should consider is the development of luxury vehicles which could then be heavily marketed toward the upper and middle class cultural societies in United States, China, Japan, Europe, etc. While Hyundai has come a long way since it first began, the automobile manufacturer has a long path of growth and expansion to meet the consumer recognition of the competition. There are both pros and cons of this type of strategic plan. The greatest advantage presents Hyundai the opportunity to turn into a top contender amongst Toyota, Nissan, Lexus, and other well established and highly appreciated car companies. To further embellish upon the benefits, Hyundai stands to substantially increase the profit margins for each vehicle as well as overall revenues. The major disadvantages detail the cost factor of production in the current economic down turn and difficulties entering into the luxury vehicle trade.
A second option which should be considered involves the investment and expansion into countries where Hyundai holds little to no presence or existence, Hyundai's commitment to diversity and inclusion is an important reason for our success as one of the fastest growing automotive companies in the world.” (Diveristy In Action, 2010) Developing these markets affords the company the prospect of creating a promising name for itself within rising commerce as well as building solid customer relationships and loyalties. With the good comes the bad, the shortcomings include but are not limited to very strong competition, limited and reduced request for luxury vehicles, and again the pricy cost factors in a sluggish economy.
The latest trend of car companies is, “going green”, cars which have significantly reduced the consumption of oil or otherwise known as the hybrid automobile. This is the third alternative Hyundai must continue to research and develop automobiles that will leave less of a foot on planet earth, “Over the next few years, Hyundai will introduce hybrids and other high-efficiency, low-emission models that cost far less than you’d expect.” (Eco-Friendly Finally Got Econ-Friendly, 2010) Today, more automobile manufacturers and government incentives entice shoppers to purchase hybrid or electrical vehicles. The government in addition to car companies is beginning to strictly regulate emission policies and rules. Optimistic reactions and reviews of these new vehicles are ever growing and provide sound reasoning to explore such an endeavor. Once more, there are cons which consist of the huge expense of examining and developing electrical and hybrid vehicles and the vast competition of other automobile makers.
The recommended strategy of choice embraces the most sensible act of ongoing research and the continuation of expansion through the development of hybrid or electric vehicles. Luxury vehicles offer the opportunity of steady increase in profits in the long run, but with the current economic conditions, and slow recovery, and consumers reevaluating the importance of financial security, this alternative should not be the preferred. Most customers want to save money as well as the environment, the hybrid and electric car provide both, the efficiency of smaller and green cars are in high demand. “With budgets tight, gas prices in flux and fuel economy on everyone’s mind, it’s more important than ever to possess the latest information on fuel-efficient vehicles and energy-saving technologies.” (About Automotive Fuel Efficiency, 2010)
Bringing into play the recommended choice of the third option, the growth and expansion of hybrid and electrical vehicles must be conducted within a series of phases rather than leap and jump without careful consideration and thorough processes. The first stage instigates the enhancement and amplification of fuel efficient small automobiles which are affordable in all aspects, cost, fuel, and maintenance. The subsequent dictates a quick...
References: About Automotive Fuel Efficiency. (2010). Retrieved September 19, 2010, from MSN.com: http://editorial.autos.msn.com/articles/fuelefficiency/default.aspx
Diveristy In Action. (2010). Retrieved September 19, 2010, from Hyundai: About Us: Diversity: http://www.hyundaiusa.com/about-hyundai/diversity/diversity-in-action/index.aspx
Eco-Friendly Finally Got Econ-Friendly. (2010). Retrieved September 18, 2010, from Hyundai: About Us: Environment: http://www.hyundaiusa.com/about-hyundai/environment/
Mufson, S., & Eilperin, J. (2009, January 27). The Washington Post. Retrieved September 19, 2010, from Obama Issues Orders Toward More Fuel-Efficient Cars: http://www.washingtonpost.com/wp-dyn/content/article/2009/01/26/AR2009012602028.html?nav=emailpage
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