Hyundai Strategic Report

Running head: HYUNDAI STRATEGIC REPORT
Hyundai Strategic Report
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1HYUNDAI STRATEGIC REPORT
Executive Summary
This report takes an honest attempt for the analysis and evaluation of different strategies of
Hyundai Motor. The first part of the report covers the external environmental analysis of
Hyundai Motor with the help of the tools of Porter’s Five Forces analysis and PESTEL
analysis. The next part of the report analyses the internal business environment of Hyundai
Motor through value chain analysis. The next part involves in the analysis and evaluation of
the business level strategies of Hyundai Motor. For this reason, the SAF model is used. The
last part involves in providing the overall conclusion of the report.

2HYUNDAI STRATEGIC REPORT
Table of Contents
Introduction................................................................................................................................3
1. External Environmental Analysis..........................................................................................3
1.1 Porter’s Five Forces Analysis..........................................................................................3
1.2 PESTEL Analysis.............................................................................................................3
2. Internal Environmental Analysis............................................................................................4
3. The Strategic Analysis...........................................................................................................5
3.1 Analysis of Business Level Strategy................................................................................5
3.2 Evaluation of Strategy......................................................................................................6
Conclusion..................................................................................................................................8

3HYUNDAI STRATEGIC REPORT
Introduction
The main aim of this report is the analysis as well as evaluation of different
dimensions of the business strategies of Hyundai Motor. For this purpose, this report covers
various strategic aspects of the company like the analysis of the external and internal business
environment, analysis of the business level strategic of the company and evaluation of the
company strategies along with the ethical considerations. Hyundai Motor is one of the
leading multinational automotive manufacturers of South Korea; and it operates in the auto
manufacturing industry (hyundai.com 2018). The company was established in the year of
1967 and is headquartered at Seoul, South Korea. The main products of Hyundai Motor are
automobiles, commercial vehicles and engines. The company has an employee base of
around 105,000 all over the world. This report takes an honest attempt to analyse various
strategic perspective of Hyundai Motor (hyundai.com 2018).
1. External Environmental Analysis
1.1 Porter’s Five Forces Analysis
Competitive Rivalry: This threat is high for Hyundai Motor in the presence of huge number
of motor companies operating in the market.
Threat of Substitutes: This threat is moderate for Hyundai Motor as the substitute products
of the company are public vehicles and rivals’ cars (Gupta 2013).
Bargaining Power of the Customers: This threat is high for Hyundai Motor as the rival
companies are providing same quality of motors in competitive prices.
Bargaining Power of the Suppliers: This threat is low for Hyundai Motor due to the
presence of suppliers all over the world.
Threat of New Entrants: The presence of high entry barriers keeps this threat low for the
company (Rothaermel 2015).
1.2 PESTEL Analysis
Political: Highly complex government supervision has made it difficult for the companies to
operate.
Economic: The effects of global recession has negative impact on Hyundai Motor due to the
decrease in the purchasing power and demand in the market.