Hyundai's Business Strategy: Cost Leadership & Differentiation

This report analyzes Hyundai's business strategies, specifically focusing on cost leadership and differentiation within the automobile industry. It begins with a brief overview of business strategy, highlighting its importance in achieving competitive advantage. The report then delves into Hyundai's implementation of cost leadership, emphasizing its focus on efficient manufacturing, supply chain management, and cost-competitive operations to reduce expenses and provide low-cost vehicles. Furthermore, the report explores Hyundai's differentiation strategy, focusing on product quality, technological advancements, and responsiveness to changing consumer preferences, including the growing demand for SUVs and environmental awareness. The report underscores how these strategies contribute to Hyundai's market success, customer loyalty, and overall competitive positioning. Finally, the report is supported by references to relevant academic sources.

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Business Strategy
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In today’s time, every company adopt a business strategy to attain competitive
advantage through actions and moves while strengthening performance, attracting customers
and accomplishing goals within an organisation. Basically, business strategy is for
management of companies to reach out their desired outcomes in future consists of
differentiation, cost leadership and focus (Moon, Hur, Yin, & Helm, 2014).
Across the globe, Hyundai is one of the leading companies in the automobile industry
as a car manufacturer by achieving success through planning, implementing and using
business strategies. In business, Hyundai use overall cost leadership as its one of the business
strategies as the company offers low-cost vehicles compared to other manufacturers while
appealing large audiences particularly through its model stratification. The company is
focused towards its manufacturing, supply chain management and other areas with high cost-
competitiveness along with building strong manufacturing capabilities which helps Hyundai
in reducing its operating costs (Rakita, Madić, & Marković, 2017). Thus, this strategy helps
company to grow in the market against it competitors while gaining competitive advantage
through these areas and creating large customer base.
In automobile industry, companies majorly focus on customer experience and prices
which shows a direct impact on its sales globally. Thus, this shows differentiation business
strategy used by Hyundai concerning its marketing strategy, pricing and brand image while
competing. The main focus of Hyundai’s differentiation is its efficiency and product quality.
The company make sure to offer safe and efficient products to customers as per their
changing tastes and preferences including environmental growth awareness, technological
advancements and growth due to the demand of SUVs in the market globally (Thomassen,
2014). Thus, this differentiation business strategy used by Hyundai helps the company is
growing customer loyalty through its use of technology and design.

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References
Moon, H.-C., Hur, Y.-K., Yin, W., & Helm, C. (2014). Extending Porter's generic strategies:
from three to eight. European Journal of International Management, 8(2), 205-225.
Rakita, B., Madić, V., & Marković, D. (2017). Competitive strategies of late followers in
auto industry: case study Hyundai-Kia. Industrija, 45(1), 121-146.
Thomassen, O. (2014). A pure characteristics demand model for automobile variants. Seoul
Journal of conomics, 27, 187-222.