Hyundai is ranked as the 5th Global automotive brand with a brand value of $143.98 thousand. It was the only automotive brand in the market which was successful to increase its brand value even during the covid-19 pandemic time.
It has a market share of 20.19% in the Indian UV market making it the 2nd largest in the country. It has faced many ups and downs in the market but it has still stood firm in the market.
Thus this makes us keen to know the SWOT analysis of Hyundai.
In this blog, you will find their Strengths, weaknesses, their possible solutions, Opportunities, and Threats in the market.
Before we start with its SWOT analysis let us know about Hyundai as a company.
Hyundai was established in 1967 by Chung Ju Yung. It has its headquarters in Seoul, South Korea.
Hyundai, an automobile company, is South Korea’s largest car manufacturing company and the world’s 3rd largest with multiple awards won.
The company has a worldwide reach having one of the greatest workforce working as a team. It has an amazing product portfolio giving the customer a wide range to choose from.
Hyundai offers 10 Year warranty which is the greatest warranty offer in the industry leaving the competitors behind.
As of 2019 It has a total asset of 209.34 Trillion with a total sales revenue of 103.99 Trillion and has around 284,114 people working under it.
Given below is the sales review of Hyundai in 2020.
Let us now have a look at the SWOT Analysis of Hyundai.
SWOT Analysis of Hyundai
S.W.O.T, where Strengths, Weaknesses, Opportunity, and Threat
Strengths and Weaknesses are the company’s internal factors while Opportunities and Threats are external factors.
To understand the industry and your competitors better a company needs to have their S.W.O.T Analysis done. It not only helps the company recognize itself but also gives them an insight into making future decisions.
Let us now first start by looking at the Strengths of Hyundai.
1. Strengths of Hyundai
Hyundai being the world’s 5th greatest automobile company holds incredible strengths. Offering safe vehicles with wonderful designs makes them stand tall in the market.
Some of the strengths are listed below:
- Impressive Analysis and Advancements – Hyundai understands the need for innovation in their cars and they have reached their benchmark through their impressive research causing them to develop state-of-art cars.Having a strong business model aid Hyundai in maintaining their brand image nationally and internationally alike. For sure, it can be regarded as the backbone of any company.
- International Existence – Hyundai enjoys its global presence, which is one of its greatest strengths. Existing globally earns Hyundai an amazing revenue and helps them with their sales. Managing the supply chain all around the globe is the challenge Hyundai overcomes gracefully.
- Advanced Marketing – Hyundai has managed to strategize its marketing campaigns effectively. Hiring celebrity brand ambassadors presenting them globally to taking part in world social activities has made the brand public-friendly and approachable. Their social presence physically and through social media platforms proves their seniority in marketing tactics for their brand.
Let us now see the Weaknesses of Hyundai.
2. Weakness of Hyundai
Knowing your weakness beforehand and having an opportunity of overcoming them is strength itself. Each company and business have weaknesses, but the successful ones are those who know how to defeat them.
Listed below are the weaknesses of Hyundai, let’s have a look.
- Engine Breakdowns and Fuel Consumption – Analyzing the customer reviews it’s shocking to know that the majority of the Hyundai consumers complain of Engine breakdowns too often that they regret buying Hyundai which is quite an alarming situation for the company.Fuel consumption up to ¾ quarts per 1000 miles is another weakness in the company’s manufactured cars.The possible solution to overcome such weakness is to review the quality of the product on an emergency basis and to maintain quality control.
- Poor Customer Service – Poor customer service is yet another weakness that the company has to work on. According to the customer reviews the company after making the sales often do not help customers in their problems relating to the company’s product. Some customers also claim the amazing warranty offered by Hyundai to be false. If this claim comes out to be true, Hyundai will lose one of its greatest advantages against its competitors.Forcing customers to buy insurance and non-availability of automobile parts in the market adds up to causing harm to the brand’s image.The possible solution is to take customers in trust, respond to their complaints and do whatever possible in making their customers satisfied.
Let us now see the Opportunities for Hyundai.
3. Opportunities for Hyundai
Opportunities are possible circumstances displaying a ray of hope of a better tomorrow. Keeping a track of opportunities is necessary for a company to get itself prepared.
Let us look at what Hyundai may expect from its future.
- Fast-Growing World Economy – New trends in customer behaviour and the ever-growing fast economy open up a door of various new opportunities for Hyundai to expand their market and explore other regions of development.Engaging and applying new marketing tactics digitally will take the company to new heights of success.
- Electric and Hybrid Cars – With the world continuously growing and flourishing especially in the field of technology no company can risk its share in the market by not updating its products. Electric and Hybrid cars to be in demand on full-swing in future universally provides the company with the opportunity to prepare for the future and have an advantage over its competitors.
- Focus on Product Development – Hyundai has an opportunity to work in its luxury range. Updating its luxury portfolio may help the company a lot especially if we talk about China, the Chinese Market in itself is a whole new opportunity to keep an eye on. Similarly, the company has a chance of working on their small car range to get great revenue.
Lastly, let us see the Threats for Hyundai.
4. Threats for Hyundai
Threats are the external factors that if ignored may harm the company a lot. Keeping an eye on possible upcoming obstacles provides an insight into making decisions.
The possible threats Hyundai may face are given below.
- Competition – Hyundai being a traditional automobile company faces high competition in Chinese, US, and European markets. Hyundai rivals are winning the market by keeping costs low while providing similar services.The amazing competition Hyundai faces from Toyota, Ford, and other companies might cause them to lose their market share.
- Government Policies – Hyundai being a universal brand exists in different countries having different governments and situations, the sudden changes in the policies are one of the greatest threats it faces.
As we have studied the swot analysis of Hyundai we have seen that the company has its own weak points and plus points.
Some of its strengths are that it has an impressive analysis of the market and a well-designed business model, its wide reach and advanced marketing skills also help it reach a large audience.
It is seen that the engine quality is bad and most of the customers report a problem of engine breakdown and the after-sale service is also bad and now helpful. These are some of the weaknesses of Hyundai that it has to work on.
One of the opportunities that Hyundai has is the new changing market with new customers. Hyundai needs to understand their wants and make products as to that. And the new era of hybrid and electric cars is coming, Hyundai needs to build cars in that category to go along the prevailing market.
These are some of the threats that Hyundai might have in the market such as the trough competition from its rival brands and the change in government policies as it serves all over the world.
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