Swot analysis of Hyundai Motors. The Hyundai Motor Company is an automobile manufacturing Korean multinational company. Chung Ju-Yung was the founder of Hyundai, and he laid the foundation of the company on December 29, 1967. The headquarter of the company is in Seoul, South Korea.
Hyundai Motors’ main products and services are; Hyundai Tucson, Hyundai Santro Xing, Hyundai i20, Hyundai Getz, Hyundai Verna, Hyundai Sonata Embera, Hyundai Santa Fe, Hyundai i10, Hyundai Accent, spare parts, engines, and various luxury and commercial vehicles.
According to an estimate, the annual revenue of Hyundai Motors in 2020 was 96 billion dollars (104 trillion South Korea won). The net income of the company was 2.5 billion dollars (2.78 trillion won). The company has employed more than 104,731 employees to manage its worldwide operations.
Hyundai Motors’ top competitors in the automobile industry are; Volvo, Ford Motor Company, Volkswagen, Skoda Auto, Tata Motors, Maruti Suzuki, Mitsubishi Motors, Fiat, Chevrolet, Nissan Motors, Toyota Motor Corporation, Honda, BMW, and Tesla.
Today, we’ll discuss the swot analysis of Hyundai Motors. It’s going to focus on the internal and external factors impacting the world’s leading automobile manufacturing company. Here’s the swot analysis of Hyundai Motors as follows;
Strengths of Hyundai Motors
As people are becoming environmentally cautious and they shifting their interest towards electric vehicles. Hyundai Motors is very well familiar with such trends, that’s why the company has already launched electric and hybrid vehicles in the market. It’s to send a positive brand image of the company and attract more customers.
Hyundai Motors has organized and sponsored many worlds’ international events. Like Cricket World Cup, FIFA World Cup, Olympique Lyonnais, Sun Bowl, National Football League, Korea Football Association, UEFA European Championship, BCCI, AS Roma, and many others. The sponsorship of such events brings the company to the spotlight and promotes its brand name.
The portfolio of Hyundai Motors comprises a variety of products and they range from SUVs, sedans, luxury vehicles, and hatchbacks. The diverse product portfolio allows the company to target various types of customers.
Hyundai Motors uses the advanced marketing techniques of hiring celebrities as the brand ambassador of the company. When such famous people endorse and promote a certain brand, they influence the choices and decisions of their followers. It increases the sale of the brand’s products.
High Sale Volume
According to an estimate, Hyundai Motors sells approximately more than 1.5 million vehicles annually. Such a high volume sale shows the strong market position of the company. Although the company’s sale has slightly dropped in 2020 due to the pandemic of covid-19, the overall sale is much better than the competitive brands.
Hyundai Motors is operating its business in more than 190 countries across the globe. The automobile brand approaches the target customers through showrooms and dealerships. However, the company has more than 6000 dealers worldwide.
According to an estimate by Interbrand, the brand value of Hyundai in 2020 was 14,295 million dollars and it has increased 1%. However, the automotive company ranked at the 36th position of the Best Global Brands of 2020.
Hyundai Motors is a socially responsible corporation, and the company has taken a number of initiatives over towards the betterment of society and the environment. It comprises drilling of waters, donation of benches to the government schools, expanding the forest cover in Tamil Nadu, promoting eco-friendly products, and many others.
Weaknesses of Hyundai Motors
Fuel Engine Ads
Hyundai Motors markets the ads of fuel engines in some regions. The company claims to be an environmentally responsible organization at the same time. However, it sends a confused and dual image of the company in the market. The brand should be clear about its stand and values.
Lower Market Share
Hyundai Motors is facing a difficult situation of maintaining its market share globally. It’s mainly because of increasing the total numbers of competitors. The growth in their market share reduces the company’s share in the market.
Opportunities available to Hyundai
Growing Automobile Industry
As we know that the automobile industry is the world’s highest revenue-generating industry. However, its performance has slowed down a little due to the pandemic crisis in 2020. But things would soon be normalized within a year. Therefore, the company should keep on research and development of its products and grow with the market growth.
The developed markets in Asia, Latin America, and Europe have great growth potential. Since Hyundai Motors is running its business in roundabout 200 countries worldwide. The company should exploit the growth of emerging markets and push its products there according to the market requirements.
The eco-friendly trend has encouraged people towards the usage of lower cost, fuel-efficient, electric and hybrid cars. Hyundai Motors should work on the efficiency of technology and make them available at a lower cost. It’s a huge and nearly impossible task, so is the reward.
Threats Hyundai Motors has to face
Hyundai Motors indeed offers its vehicles at a lower cost than the competitors’ brands. Many people still relying on the public mode of transportation like busses, trains, etc. instead of owning the vehicle. The substitute mode of transportation is the biggest threat to the company’s growth.
Honda, Toyota, Tesla, Volkswagen, Ford, BMW, and others are some of the main competitors of Hyundai Motors. They have experience, a loyal customer base, a diverse portfolio, and a global market share. Their increasing growth rate reduces the company’s market share.
The governments of various countries have made the regulations very strict for the automobile companies like Hyundai Motors in terms of safety, security, carbon emission, fuel consumption, and running. The goal is to make the ride secure and environmentally sustainable.
The pandemic of covid-19 created an environment of economic uncertainty and panic worldwide. The travel band and lockdown decreased Hyundai’s sales and revenue to a great extent.
Conclusion: Hyundai Motors Swot Analysis
After a careful study of the swot analysis of Hyundai Motors, we’ve concluded that Hyundai Motors is indeed the world’s leading automobile manufacturing company. High competition, economic recession, substitute mode of transportation, and government regulations are some of the main challenges. Hyundai Motors should diversify its portfolio, launch efficient technology, and enter into the developing markets.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.