MGMT 3006 - Hyundai Motors: Detailed Company Performance Analysis

This report presents a comprehensive analysis of Hyundai Motors, examining its market research, customer profile, and strategic positioning within the automotive industry. It delves into the company's evolution, target market, and market segmentation, providing insights into its customer-centric approach. The report evaluates Hyundai's corporate, business, and functional strategies, including its growth initiatives and technological advancements. A detailed financial analysis, including key financial ratios and their comparison to industry averages, is provided. The operating model is also discussed, highlighting resources, value drivers, and value chain analysis. The VRIO framework is applied to assess the company's competitive advantages. The report concludes with an overview of Hyundai's potential and future prospects in the automotive market.

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Executive Summary
The study illustrates about Hyundai Motors market reaserch and the value potential to the
customer. The purpose of this empirical research is to provide a 360 degree analysis of the
company that will show Hyunadai’s position in the industry segment. Being a largest
manufacturer inm the world the company’s aims to fulfil the needs of diversified consumers. It is
dominated the automobile market since its incorporation. The objective of this paper is to
evaluate the performance of Hyundai Motors with respect to its stratrgy, operating activity,
financials. The competitive advantage and market segmentation is critically analysed by this
study.

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Table of Contents
Introduction......................................................................................................................................4
2.1 Overview of the company..........................................................................................................4
Evolution of Hyundai Motors..........................................................................................................4
2017.................................................................................................................................................4
2018.................................................................................................................................................4
2019.................................................................................................................................................5
Key Milestone..................................................................................................................................5
2.2 customer profile.........................................................................................................................5
Target Market..................................................................................................................................5
Customer..........................................................................................................................................5
Market segmentation.......................................................................................................................6
Demographic segment.....................................................................................................................6
Economic segment...........................................................................................................................6
Social segment.................................................................................................................................6
VRIO framework.............................................................................................................................6
Valuable...........................................................................................................................................7
Rare..................................................................................................................................................7
Imitable............................................................................................................................................8

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Organization....................................................................................................................................8
2.3....................................................................................................................................................9
Corporate strategy............................................................................................................................9
Corporate Strategy-........................................................................................................................10
Business Strategy...........................................................................................................................10
Functional strategy.........................................................................................................................10
Path of Hydrogen fuel cell vehicles development.........................................................................11
Growth strategies...........................................................................................................................11
2.4 Financial profile.......................................................................................................................12
Key financial ratio.........................................................................................................................12
2.5 Operating model......................................................................................................................13
Resources.......................................................................................................................................13
Values............................................................................................................................................13
Cost Drivers...................................................................................................................................13
Value chain analysis......................................................................................................................14
Conclusion.....................................................................................................................................14
Reference.......................................................................................................................................15
Appendics......................................................................................................................................16

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Introduction
2.1 Overview
The Hyundai Motor Company is popularly known as Hyundai motors. It is based on
South Korean multinational automotive manufacturer which has the heradquarter in Seoul. The
company was established 1967 along with its own 32.8% subsidiary Kia Motors and its 100%
possessed luxury subsidiary Genesis Motoros. The company is the third largest manufacturer in
the world.
Evolution of Hyundai Motors
Hyundai has been a best forntline modern car design and manufacturing for the decades..
The company has a technological innovation in their history. It has not developed merely for the
sake of evolution. (Nunes, Vaccaro & Júnior, 2017).
2017
Future mobility at CES 2017 in three directions has announced
Formed alliance for development of fuel cell cars
2018
Successed in autonomus driving
New Veloster model launched

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2019
Hyundai Veloster N race car debut at the north American International Auto show
Being the larges mobility service provider Ola, Hyundai KIA invested $300 million in India
Key Milestone
Hyundai Kona and Kona Electric CUV won prestigious 2019 North American utility vehicle
(Jeong, 2015) of the year
Hyundai all new Santro received best of 2018 award
2.2 customer profile
Target Market
The marketing strategy taken by Hyundai is differentiated marketing (Zhang, Joseph &
Subramaniam, 2015). Middle income to upper income professionals inviduals is the the primary
customer targert of Hyundai. Those people who really need value of their money and want a
comfortable ride in the city condition. Concerning about the secondary targeted market is for
college students specially who needs style and speed.
Customer
The company has set up a customer centric smart service which helps to increase the
credibility of the post sale services.

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Market segmentation
In case of the segmentation of the market Hyundai frames the behavioural and
psychographic segmentation which varies the market in the homogeneous group. It is broadly an
economic segment and can enter its premium segment through its offerings.
Demographic segment
Average household income 36 % or above previous model- younger age purchaser
Closely 5 years below previous model- 39 % from high turbo model sales mix
Early launch sales metrics of a premium buyer preference
Higher demographic CUV buyer
Economic segment
Hyundai motors will support the customized, country specific strategies in the both advance and
emerging markets. In the United States, it is strated showing some signs of economic retrieval.
Social segment
The company will continue to care for the underpreviliged and function a leading role for the
mutual growth, through the diverse social responsibility, the company will reach out to most
neglected areas of the society.
VRIO framework
The VRIO analysis (Song, & Sung, 2015) of Hyundai refers each of its internal resources
to evaluate the competitive advantage.

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Valuable
The Hyundai VRIO analysis can depicts a financial resources of Hyundai which are highly
valauable in investing into external opportunities that arise. It helps to prevent the external
threats.
The company’s VRIO analysis suggests that the employees are much valuable resources for the
firm. The workforce is significantly highly trained and this could leads a more productive
outcome.
Rare
According to the VRIO analysis of the Hyundai, the financial resources are rare to the
organizations.
As the VRIO aanalyis of Hyundai the paptent of the company is very rare. Employee is highly
trained and skills, which is not the case of employees in the other firms.

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Imitable
The financial analysis of the Hyundai are costly to imitate as identified by the VIRO analysis.
Over the year these resources have been acquired by the company the longer profits. To have this
amounts of financial resources new entrents and competitors requires a similar profits.
As per the VRIO analysis, the distribution network of Hyundai is also very costly to imitate by
the competitors. It has improved by the competitors over the years.
Organization
As the VRIO analysis suggests financial resources of Hyundai are organised to capture the
values. These resources are used strategically to invest in the right palce.
As identified by the Hyundai VRIO analysis, the patents are not well organized. These means
that the organization is not using these patents to their full potential. An unused competitive
advantage convert into the sustainable competative advantage (David & David 2016) if the
company started selling the patent products before expiry.
From the above analysis of VRIO, it is acknowledged that the financial resources and
distributaion network refered a sustained competitive advantage. To refer the unused competitive
advantage the patents are accounted. There is an existence of a temporary competitive advantage
for employees. There is a competitive food parity for local food products. Cost structure of
Hyundai is a competitive disadvantage, research and development as well.

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An automotive buying model by Hyundai which makes sure that the transparent price
mechanism is available here. It is product called a"s Shopper Assurance (Abdallah 2017), which
enables shoppers to get the transparent pricing, is a better retail experience for a car buyers.
The measurement of the company’s psycographic market segment (Cross, Belich &
Rudelius, 2015) is indictes quantitative research. Where as defining the customer behavioural
pattern towards buying the product is refers qualitative research.
2.3
Corporate strategy
 Expanding the overall efficiency
 Reduction of weight
 Various fuel economy regulations
 Alternative fuel resources utilizing

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Corporate Strategy-
Zero reduction of CO2, Dream of Hyundai
Business Strategy
Provide quality edge, design and innovation is the business strategy.
Functional strategy
Hybrid car development and future plans

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Path of Hydrogen fuel cell vehicles development
Growth strategies
Hyundai has two pillars of growth strategic decision by 2025,
By including Personal Air vehicle, smart mobility device will expand beyond automobiles.
Smart mobility service will offer personalized service
Profitability boosting with the enhanced customer value and innovative cost structure (Ateş, van
Raaij & Wynstra, 2018).
To became top manufacturer by 2025 it has decided to sell 670000 BEVs and FCEVs annully.