KIA Dealership Managment Case Study

Topics: Automotive industry, General Motors, Renault Pages: 16 (2906 words) Published: November 29, 2014

i. Executive Summary

KIA, the famous automobile manufacturer in Korean, established distribution in Nanaimo since 2000. Through the interview with the manager and investigation, this project analyses the statement about KIA dealership in Nanaimo, including the general environment, industry environment, competitive and strategy analysis. Based on the combination of industry environment and general environment, it chooses cost strategy as the suitable strategy for KIA Motors. It uses SWOT analytical method to realize the threat and opportunity. And it gives the recommendation according to the analysis. KIA dealership should keep the strategy and change to differentiation strategy in special models market.

ii. TABLE OF CONTENTS

Introduction……………………………………………………………................................1 General Environment………………………………………………………………………...2 Industry Environment………………………………………………………………………..4 Competitive Analysis………………………………………………………………………...7 Strategy………………………………………………………………………………………9 Conclusion………………………………………………………………………………….13 References…………………………………………………………………………………..14

1. Introduction
KIA Motors Corporation is a Korean automobile manufacturer. It was founded in 1944 as Kyung Sung Precision Industry and in 1951 was renamed to KIA Motors Corporation. Firstly, this company produced only bicycle and moto bicycle. However, in 1970s it developed production of cars. Furthermore in 1998 company experienced economic crisis, followed by decline of company’s sales. In order to survive this crisis, KIA Motors decided to sacrifice its independence and became a part of Hyundai Motor. In addition, current KIA Motors became 2nd biggest automobile manufacturer in Korea and world’s 7th largest automobile manufacturer. According to (KIA MOTORS, 2014). According to local dealership manager, KIA expanded to Vancouver in 1999. And the manager claimed that its niche for accessible and not expansive cars. The core competence is quality customer service. Although car sale market competition is fierce, Harris KIA can survive almost 15 years since 2000 and achieve good sale performance each year. The company always sticks to a business policy of customer paramount and a cultural spirit of “human-oriented”.

2. General environment
A. Policy/Legal
As an emerging car company, KIA adopts diverse sales policies to show their special design and quality. Nowadays, KIA’s cars are sold across the whole world. In Nanaimo, KIA dealer follows the policy from headquarters. They protect every customer’s private, which include names, email address, phone numbers and so on. KIA may communicate with customers for car maintenance. In addition, KIA’s logo is registered trademarks; other organization or individual cannot use it. Finally, in 2000, KIA formulates a new policy, which coordinates the relationship between management and first level, timely community with customers, and accepts the feedback and recommendations from customers. KIA’s policy persistent observes global standard principle, fairly compete with other companies. (2014,Sustainable Vision & Strategy) B. Economic

As of 2013, the total assets of KIA reach at 36,182,040million KRW (equal to about 329,20million dollars). In Korea, the sales of KIA vehicle remain stable in 3 years between 491,712 and 457,787. As an international company, export is a significant part of interests. In recent years, the export volume of KIA is increasing steadily. According to the KIA’s financial report, the sale volume increased dramatically from 1,985,956 to 2,288,643 between 2011 and 2013. In America, the sale KIA successfully is beyond 60000. In Nanaimo, KIA dealer dose not only sell KIA’s vehicles and used cars, but also they sell cars which are made by other companies such as, Toyota, Honda etc.

C. Social culture
Although KIA is a simple name, it has profound meaning. KIA Logo derives from Sino-Korean words. K means, “to come out”; A stands for Asia....

References: 7. Reference
BMWNanaimo.com,.(2014)
Consumer Reports. (2014). Retrieved from http://www.consumerreports.org/cro/news/2014/04/2015-kia-company-tries-to-escape-the-lux-stigma/index.htm
India Hyundai.com,
KIA MOTORS.com,. (2014). Retrieved from http://www.kia.com/worldwide/about-kia/company/HistoryKia/
NanaimoHonda.com,
NBC News.com,. (2014). Retrieved from http://www.nbcnews.com/id/38956147/ns/business-the_driver_seat/t/kia-moves-change-its-image-hamsters-all/#.U5e_Lha4mFI
Newswire
Woodyard, C. (2005, Mar 23). Hyundai, kia shift gears to overtake competition; as sales and quality improve, so do plans for growth. USA TODAY Retrievedfrom http://search.proquest.com/docview/408922782?accountid=28844
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay about Tesla Case study 2
  • Essay about Case Study
  • hyundai and kia case study Essay
  • case study Essay
  • Case Study Essay
  • case study Essay
  • Business Studies Case Study Essay
  • Managment Case Study Essay

Become a StudyMode Member

Sign Up - It's Free