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INTB CASE 1
INTB 3101 / 01

Hyundai Case Questions

Group # 2
Merna M Ibrahim
Hend M El Deeb
Nahla El Gendy
Nesma S Mardini
Yomna M Ali

Question 1: What are the roles of comparative and competitive advantages in Hyundai’s success? Illustrate your answer by providing natural and acquired advantages that Hyundai employs to succeed in the global car industry. Korea has one of the largest automotive industries in the world and is becoming one of the fastest growing in the global markets. Hyundai Motor is one of the huge contributors in the Korean automotive industry, and it is also the largest South Korean market, which makes it have a huge value to the country’s economy. There are many advantages that are behind the success of Hyundai, and those advantages include Korea’s competitive advantages and Korea’s comparative advantages. The comparative and competitive advantages play a very significant role in Hyundai’s success as without these advantages it would have been difficult for Hyundai to succeed, as Korea’s market is very small. Here are the comparative and competitive advantages that Hyundai has.
Comparative Advantages:
The Strategic position that Korea adopts, where it lies between Japan, which is known for its high technology and high prices, and China known for its very low manufacturing costs. This geographic position helps Korea in achieving and equilibrium between cost and quality. (Natural advantages)
Korea is a center of technological advancements and demanding consumers that cause intense rivalry in the car industry that ensures them to improve products continuously (Graf). (Natural Advantage)
Effective Labor: It has high percentage of low cost and skilled labor that contribute to the country’s progression. (Natural advantage)
High savings and inward foreign direct investment (FDI) guarantees a ready supply for capital.
Industrial Cluster: Korean government are cooperating with the business sector to promote raw materials, also they are taking


References: "Automotive Industry Performs Poorly in 2013." Eiu. The Economist Intelligence Unit, 15 Jan. 2014. Web. 31 Oct. 2014 Courtenay, Vince Graf, Brian. "RISKY BUSINESS: A CASE STUDY OF HYUNDAI MOTOR COMPANY’S SUCCESS IN THE U.S. MARKET." PDF. The Colorado College, May 2014. Web. 01 Nov. 2014. Guarini, Giulio. "Is Korea Catching Up? An Analysis of the Labour Productivity Growth in South Korea."Oxford Development Studies 34.3 (2006): 323-38 "Heckscher–Ohlin Model." Wikipedia. Wikimedia Foundation, 24 Oct. 2014. Web. 01 Nov. 2014. "Hyundai for Domestic Sale Has Better Early Quality than Audi." BusinessKorea. 16 Oct. 2013. Web. 24 Oct. 2014. "Hyundai 's Competitive Advantage & Strategy." HubPages. Web. 27 Oct. 2014. Lee, Choong Y. "The Rise of Korean Automobile Industry: Analysis and Suggestions." International Journal of Multidisciplinary Research 1.6 (2011): 428-39 Lee, Phil S. "Economic Crisis and Chaebol Reform in Korea." APEC Study Center, Oct. 2000. Xinhua News Agency (China). "PrintShare South Korea Cars: Auto Exports Rebound on One-off Factor." Eiu. Xinhua News Agency (China), 9 Sept. 2013. Web. 30 Oct. 2014. "2014 U.S. Initial Quality Study (IQS) | J.D. Power." Matthew.scroggs. J.D. Power, 18 June 2014. Web. 24 Oct. 2014
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