SWOT Analysis of Hyundai Motors

OPPORTUNITIES THREATS · Develop fuel efficient cars

· Hybrid cars

· Provide training to dealers

· Boosting fuel efficiency

· Optimize production processes to minimize losses

· Launch electric cars

· Conflict between south and north Korea

· Exchange rates

· Inflation

· High Fuel prices

· Improvement in public transport

· Competition

SWOT Matrix (Image)

Strengths

• Fastest growing automaker by brand.

• Strong research & development; it has established eight Research and Development centers in different part of the world.

• It has world largest automobile plant named “The Ulsan Plant” located in Korea.

• Hyundai vehicles are sold in 193 countries via 6000 dealers.

• It was ranked 8th in automotive brand ranking of 2013.

• Fastest growing company in automotive industry..

• Growth in Europe region sales.

• Strong revenues and profits in 2013.

• Hyundai’s brand value reaches $9 billion, ranking No. 43 in Interbrand’s 2013 Best 100 Global Brands

• Hyundai Motor to launch first electric car in 2016.

Weaknesses

[large]• Low availability of spare parts due to unavailability of authorized dealers and distributors.

• Hyundai recalled cars on different occasions due to issues in seat belt and brakes.

• In 2013, the sales goes down by 4% in Korea.

• Production losses

• Lack of attractive car designs as compared to major competitors.

• Weak presence in Asia region.

• The sales are on lower side in Japan.

Opportunities

• Manufacture low price and fuel efficient cars for third world countries

• Enter into untapped markets.

• Joint ventures to open assembling plants.

• The fuel prices are increasing therefore; it’s the right time for Hyundai to start focusing on manufacturing Hybrid cars.

• It should launch its electric cars ahead of other competitor to get first move advantage.

• Provide training to dealers to improve customer services.

• Boosting fuel efficiency

• Increase production efficiency of manufacturing plants to increase global sales.

Threats

• Conflict between South and North Korea could impact the largest production facility of Hyundai Motors.

• Fierce competition in automobile industry.

• Unrest in Africa region.

• Raise in price of fuel might reduce the demand of Hyundai vehicles.

• Betterment in public transport infrastructure could decline the company sales.

• Fluctuations in currency exchange rate might negatively impact the company profit margin.