Earlier we delved into the SWOT Analysis of Nissan, a Japanese multinational automotive corporation. This time, we’ll take a look at the SWOT Analysis of Hyundai.
Hyundai Motor Group is an automobile behemoth that places a premium on innovation and consumer happiness, resulting in the company’s rapid global development and growth. In Ulsan, on Korea’s southeast coast, they run the world’s biggest integrated vehicle manufacturing complex.
Hyundai has reached the garages of many with its effective marketing strategies. In the marketing sector, being up to speed on current market trends is critical. Attend our Free MasterClass on Digital Marketing 101, hosted by Karan Shah, CEO and Founder of IIDE, to discover more about today’s effective marketing.
Right before we delve into the SWOT Analysis of Hyundai, let’s look at the background of the company, its founders, financial status, competitors and products.
About Hyundai Motors
Hyundai Motor Company or popularly known as Hyundai is a South Korea-based multinational company that deals in the manufacturing of automobiles. Founded in the mid 20th century by Chung Ju-Yung, the company has its headquarters in Seoul, South Korea with Chung Eui-sun as the chairperson and Eon Tae-ha and Jae Hoon-chang as the CEO and president.
Hyundai Motors has its roots in countries like Turkey, South Korea, China, North America, India, the Czech Republic, Russia, and Brazil. Hyundai sells its vehicles in 190+ countries through 6,000 dealerships and showrooms.
Hyundai presently has eight research facilities in Korea and four foreign centers, including the Hyundai America Technical Center in Ann Arbor, Michigan, and the Hyundai California Design Center in Fountain Valley, California. Hyundai’s automotive technology centers employ about 4,100 researchers and operate on 5% of the current revenue budget.
|Origin||Seoul, South Korea|
|No. of Employees||9500|
|Market Cap||$33.309 Billion (2020)|
|Annual Revenue||$23.649 Billion (2020)|
|Net Income/ Profit||$96 Billion (2020)|
Products of Hyundai
These are the products manufactured and sold by Hyundai:
Competitors of Hyundai
There are many organizations focusing on motors. Following are Hyundai major competitors:
- Toyota Motor Corporation
- GM Motors
- Ford Motors
Now that we are familiar with the basics of the company, let’s dive straight into the SWOT Analysis of Hyundai.
SWOT Analysis of Hyundai
1. Strengths of Hyundai
Strengths are internal factors that the company has upper control over. These elements are managed by the company and it is what keeps them strong and prominent in the market. Following are Hyundai’s strengths –
- Advanced marketing – Hyundai hires celebrities as brand ambassadors to represent their brand globally. Therefore influencing the tastes and preferences of the customers and making the brand more approachable and user-friendly. Hence increasing the sales and proving itself to be successful in their marketing activities.
- High sales volume – Being the world’s 6th largest car-maker, Hyundai produces and sells its automobiles in a huge proportion which implies its strong market position in the global market. Although due to the Covid-19 pandemic, the sales dropped with a little different but still did better than its competition.
- Brand value – According to Interbrand, Hyundai’s brand value in the financial year 2020 was $14,295 million dollars, up 1% from the previous year. Factors such as product innovation, safety, sustainability, product line, and a global network of distributors have helped the company sustain its brand image and value.
- Global presence – Hyundai operates in 190+ countries across the globe. It does a great job in handling the supply chain across the globe and reaches its target customers through 6000 dealers worldwide and therefore earns high revenues, adding to its sales.
- Strong business model – Hyundai has a strong business model and its ability was proved during the Covid-19 pandemic. While a large number of automobile brands had a tough time struggling with pandemics in terms of sales and revenue, Hyundai emerged relatively unscathed.
- CSR – Companies need to fulfill their responsibility towards society and the environment. Hyundai Motors is a socially responsible organization, and the company has taken many initiatives for the betterment of society and the environment. It comprises donations of benches to the government schools, expanding forest covers in Tamil Nadu, promotion of eco-friendly products, and more.
2. Weaknesses of Hyundai
Second, in line with the SWOT analysis of Hyundai, are its weaknesses. These also are internal factors that are relatively in control by the company. Following are Hyundai’s weaknesses –
- Fuel engine ads – The advertising of the fuel engines of the company takes place in a few regions only and claims to be an accountable organization when it comes to the environment. Thus sending a perplexed, unclear, and dual image of the company to its customers.
- Lower Market Share – Maintaining its market share globally is a difficult task for Hyundai. The automobile industry is among one of the most profitable industries. With an increase in the total number of competitors, there has been a decline in Hyundai’s market share. Increasing competitors and their growth is giving the company a tough fight.
3. Opportunities of Hyundai
Opportunities are external elements that pose advantageously to the company if they recognize and use them to their potential. Hyundai’s opportunities are as follows –
- Growing and developing markets – The ever-growing fast economy and the new trends in consumer behavior bring various new opportunities with time. Developing nations of Asia, Europe, and Latin America have huge growth potential. Therefore the company should keep doing the research and development of its products and push their products in developing markets. Hence ensure their growth with the market growth
- Electric cars – Hyundai has gained a reputation with their electric and hybrid cars. This is also a great opportunity for them. The company should try making these available at lower costs and increase their production for the same so that Hyundai utilizes this opportunity to its fullest.
4. Threats of Hyundai
Last, under the segment of the SWOT analysis of Hyundai, we have the threats. These are external factors that the company has no control over. Following are threats of Hyundai –
- Substitute – Hyundai Motors does offer its vehicles at a lower cost as compared to that of the competitors’ brands, but many people still depend on public transportations like busses, trains, etc. instead of owning the vehicle. Hence, the use of such substitute modes of transportation is the biggest threat to the company’s growth.
- Competitors – Toyota, Honda, Tesla, BMW, Ford, and many other companies give Hyundai tough competition. The increasing growth rate of the competitors results in a reduction of Hyundai’s market share. Hence a threat for the company.
- Government policies – Being having an international presence, the company tends to follow the policies of various countries and governments. The unending fear of any sudden change in the policies and the environment thus remains constant.
Hyundai has come a long way with all its efforts. Hyundai rose in the motor manufacturing industry and built its brand value with the strong marketing, effective business model and contributions to society. However, a boost into developing markets and affordable reach to modernised cars will help elevate the brand against their competitors.
Hyundai has a strong grasp over traditional marketing, however, they do have scope to enter and utilise the big umbrella of Digital Marketing. Gaining the requisite skills in this field and completing Certified Courses may lead to employment opportunities with famous corporations such as Hyundai.
IIDE offers short-term certification courses that can get you up to speed in as little as 5 days in a range of digital skills and expertise. IIDE’s short-term certification courses on areas such as social media marketing, media strategy, and SEO.
If you enjoy in-depth company research, check out our section IIDE Knowledge for more interesting case studies. Thank you for taking the time to read this case study of the SWOT Analysis of Hyundai, do comment below with your opinions.