The paper "Hyundai Motor Company Market Development" is a great example of a marketing case study. Environmental analysis (TOWS) of an organization involves evaluating both internal and external factors which have either a beneficial or detrimental impact on the ability of an organization to effectively compete in the market place. Organizations strengths are internal resources and capabilities and regarded as an organization’ s core competencies. It is these strengths that enable Hyundai Motor Company to create and maintain a competitive advantage against competitors in the market place. Weaknesses, on the other hand, are those factors internal to an organization that jeopardize business performance and competitiveness in the market place.
It is the mandate of Hyundai Motor Company’ s management to craft and executes business strategies that turn an organization’ s weaknesses into resources and strategic capabilities (Ireland & Hitt, 2005, p. 68). Opportunities and threats are both factors external to an organization which have a bearing on the organization’ s competitiveness and performance in the market place. Business organizations have very limited control over these exogenous factors. Therefore, Hyundai Motor Company’ s business strategy plays an important role in enabling an organization to respond to business opportunities, as well as to minimize threats in the market place.
Hyundai Motor Company has achieved competitive advantages due to the ability of their value chains and business strategies to take advantage of available business opportunities while turning threats into resources (Datamonitor Group, 2011b). Table 1 AND Table 2 respectively is a summary of the SWOT and TOWS Matrix analysis of Hyundai Motor Company. Strengths Weaknesses Winning strategy Acquisition power for instance purchase of Kia in 1998 Formation of strategic partnerships and alliances (see appendix 1) Knowledge of market Strong brand Outstanding market presence Skilled workforce Strong in-house research and development Old-fashioned brand Challenges regarding new technology Corporate governance geared towards increasing shareholder value Opportunities Threats Emerging markets Africa, Asia and the Middle East Opportunity to rebrand Growing market demand for car products Mergers e. g.
with other industry players High competition from rivals such as Toyota, General Motors which have a strong grip of the market especially in emerging economies in Africa, Asia and the Middle East Ever-changing technology The reinvention of various industry brands with cost-leadership strategies Table 2 - TOWS Matrix Strengths (S) Weaknesses (W) Opportunities (O) Acquisition power for instance purchase of Kia in 1998, this assists in getting emerging markets in Asia and Africa. Strong in-house research and development gives it an opportunity to rebrand Challenges regarding new technology lead to its rebranding and inventing other technologies Threats (T) Strong brand and Outstanding market presence makes it ensures its survival due to the Reinvention of various industry brands with cost-leadership strategies and Ever-changing technology Challenges regarding new technology and High competition from rivals such as Toyota, General Motors 1.2 Strategic Choice 1.2.1 Market Penetration Organization’ s management is tasked to create an organization that has the capacity to produce goods and services that consumers need but have not imagined (Laurie, 2001, p. 38).
Market penetration is one of the most viable strategic choices that can be adopted by the Hyundai Motor Company. In order to effectively penetrate the already competitive automobiles market, the company must ensure that it designs and manufactures automobile products which are aesthetically pleasing, satisfactory and conforms to the expectations of consumer needs in various market segments, innovative, reliable, exhibits high performance, and are easily manufactured and delivered. As such, Hyundai must focus on designing cars which are transformative and distinct. 1.2.2 New Products and Services Proper marketing deals with the question of what do customers want, where the market is, who will buy and why they will buy the product.
This is achieved through the process of planning, executing the conception, pricing, promotion and distribution of ideas, goods and services to satisfy the customer needs which are dynamic while ensuring increased income and successful market leadership (Ehmke, Fulton & Lusk, 2005 p. 2 & 3). Hyundai Motor Company should focus on providing distinctive, unique and differentiated automobile products and services for different calibre of clients to be able to capture a broader market and effectively compete in the market place. 1.2.3 Market Development As a result of globalization, automobile customer base continues to become more diverse, and with specialized needs and preferences.
Having knowledge of the social, cultural, demographic, as well as economic dimensions which define automobile customers is challenging but remains an essential task if automotive companies have to find and target new growth opportunities (McDonald, 2007, p. 373). As such, Hyundai Motors Company must undertake this challenging task in order to effectively develop its market base in the automobiles industry.
Effective communication to customers on distinctive features of their cars from those of their competitors in the various target market segments is a significant market development strategy.
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