Detailed SWOT Analysis Of Hyundai – Detailed Company Overview

Some brands have grown exponentially since their inception. Hyundai is one of them. How did they manage it? What did they do to increase their customer base? What did they do to keep their consumers coming back? We think Hyundai’s Marketing Strategy played a significant part in all this, especially its digital marketing strategy. This article analyses a few digital marketing strategies used by the company to give you an insight into what they have been doing.

 

About Hyundai

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.

Now that we are discussing Hyundai, let’s take a look at their marketing strategy too.

 

What’s new with Hyundai?

Here’s what was buzzing around Hyundai recently:

1. 10th July 2023 : Hyundai develops a compact SUV in India to increase market share as competitors gain ground.
2. 22nd Dec 2022 : Hyundai has announced a price increase for all vehicles beginning in January 2023.
3. 23rd June 2023 : Hyundai Exter SUV production begins: July 10th launch
4. 17th July 2023: 2023 Hyundai Santa Fe revealed with a radical redesign
5. 14th July 2023 :The Hyundai Electric Car you will hear coming.

 

Let’s now understand the target audience of Hyundai better with the help of a buyer persona.

Buyer Persona of Hyundai

A buyer persona generally refers to the detailed information of an ideal customer of a company. When it comes to Hyundai, people from India use it the most. This buyer persona will help you understand the attributes of regular a Hyundai user.

 

From the table above we can conclude that an ideal Hyundai Useris a value-conscious individual who seeks a reliable and stylish vehicle that offers the latest technology and features.

Want to know about the current challenges of Hyundai? Read a detailed SWOT Analysis of the brand before moving on with marketing strategies.

 

SWOT Analysis of Hyundai

SWOT stands for Strengths, Weaknesses, Opportunities, Threats. It is used as a tool to know and analyze the market position and general health of a business. It is extremely useful and is done by every old as well as a new business to determine the most effective future path.

So without any further ado, let us start the discussion of each segment in the SWOT analysis of Hyundai in the coming section:

Strengths:

1. Diverse Product Portfolio: Hyundai offers a wide range of vehicles, including sedans, SUVs, and eco-friendly models. This diversity caters to various customer preferences.

2. Quality and Reliability: Hyundai has improved the quality and reliability of its vehicles, gaining trust among customers. This is reflected in high customer satisfaction ratings.

3. Innovation and Technology: Hyundai invests in innovative technologies, such as hybrid and electric vehicles, autonomous driving, and connectivity features. It keeps the company at the forefront of the automotive industry.

4. Global Presence: Hyundai has a significant global presence with manufacturing facilities and sales operations in various countries, contributing to a large market share.

5. Cost-Efficiency: The company’s effective production and cost-management strategies allow Hyundai to offer competitive pricing, making its vehicles more accessible to a broader customer base.

Weaknesses:

1. Brand Perception: Hyundai, while improving, still faces some lingering perceptions of being a budget or lower-tier brand compared to premium competitors.

2. Overreliance on a Few Markets: The company heavily depends on a few key markets, such as South Korea and the United States, which can be a vulnerability during economic downturns or market fluctuations.

3. Resale Value: Hyundai vehicles tend to have lower resale values compared to some competitors, which can deter certain customers.

4. Dependence on Suppliers: Like many automotive companies, Hyundai relies on a network of suppliers, and any disruption in the supply chain can impact production.

Opportunities:

1. Electric and Hybrid Vehicles: The growing demand for electric and hybrid vehicles presents an excellent opportunity for Hyundai, given its investments in this technology.

2. Emerging Markets: Expanding in emerging markets, especially in Asia and Latin America, can lead to increased sales and market share.

3. Autonomous Driving: As autonomous driving technology advances, Hyundai can explore opportunities in this field, potentially transforming transportation.

4. Sustainability and Environmental Concerns: The increasing focus on sustainability and environmental concerns aligns with Hyundai’s efforts to develop eco-friendly vehicles.

Threats:

1. Competition: The automotive industry is highly competitive, with established players and new entrants. Fierce competition can affect market share and profitability.

2. Economic Fluctuations: Economic downturns can lead to reduced consumer spending on automobiles, impacting sales.

3. Regulatory Changes: Stringent emissions regulations and safety standards can require significant investments in research and development to remain compliant.

4. Supply Chain Disruptions: Events like natural disasters, labor strikes, or political instability can disrupt the supply chain, affecting production and sales.

5. Geopolitical Factors: International trade tensions or geopolitical conflicts can impact global supply chains and sales.

This SWOT analysis provides an overview of Hyundai’s current position in the market and potential areas for improvement and growth. It’s essential for the company to leverage its strengths, address weaknesses, seize opportunities, and mitigate threats to remain competitive and successful in the automotive industry.

 

Failed Campaigns of Hyundai 

Hyundai more than often grabs attention with its unique marketing. But, there have been a few times when the campaign failed to connect with the audiences and gained backlash. 

Here are a few examples of failed campaigns of Hyundai:

THE ISSUE:

In 2013,Hyundai had inevitably found itself in the center of a PR issue after publishing a commercial that attempts to find humour in a man’s unsuccessful suicide attempt – the “joke” being that the new car’s exhaust emissions are formed of water rather than carbon monoxide and, thus, aren’t toxic.

Following the worldwide appeal of freelance copywriter Holly Brockwell’s emotional blog about her father, who successfully committed suicide by inhaling his car’s exhaust fumes, both Hyundai Motor America and the corporation as a whole issued apologies for the European-made advertising.

COMPANY’S REACTION TO THE ISSUE:

Hyundai stated that it did not request or approve the advertisement, and it pulled the video from YouTube  after widespread criticism.

“Hyundai Motor apologizes deeply and sincerely for the offensive viral ad,” the firm said. “It contradicts our values as a business and as members of the community.” We sincerely apologize for any offense or distress caused by the video. More importantly, Hyundai expresses condolences to individuals who have been personally affected by tragedy.”

 

Top Competitors of Hyundai 

Here’s the list of top competitors of Hyundai:

• TOYOTA MOTOR CORPORATION

• VOLKSWAGEN

• FORD MOTORS

• NISSAN
• HONDA MOTORS

Conclusion

 

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.