IB A copy Jeff - Introduction Hyundai Motor Company is...

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Introduction Hyundai Motor Company is South Korea's number one carmaker and the tenth largest in the world. It sells vehicles in over 190 countries, producing many types of cars such as dozen car, minivan models, plus trucks, buses, etc. Hyundai Motor is the one of the five major chaebol. It also implements a new global policy aimed at localization. This includes consumer services, sales, design, marketing, and product development to satisfy local customers’ tastes as well as that of the global market. Porter's Diamond Model Porter's Diamond Model was created by Michael Porter. This is a model that is designed to help understanding the competitive advantage that any nations or groups possess due to certain factors available to them and to explain how governments can act as catalysts to improve a country's position in a globally competitive economic environment. This model has four important factors. They are factor endowments, demand conditions, related and supporting industries and film strategy, structure, and rivalry. These factors act as an important role to Hyundai's international success. I will illustrate my idea in these four areas. Factor endowments Factor endowments mean a nation's position in factors of production necessary to compete in a given industry. This factor can lead to competitive advantage and can be either basic such as natural resources, climate, location, or advanced such as skilled labor, infrastructure and technological know-how. Factor endowments impact on a country's comparative advantage by affecting the opportunity cost of specializing in producing certain goods relative to others. Basic factors can provide only an initial advantage and also must be supported by advanced factors to maintain success. Factor conditions are those elements that Porter believes a country's economy can create for itself, such as a large pool of skilled labor, technological innovation, infrastructure and capital. Other factors of production that are of great abundance to Hyundai are the availability of cost- effective labour and knowledge workers in the country. Back home, Hyundai has access to a highly
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skilled and diligent workforce with relatively low wages. Therefore, Hyundai has many skillful workers who can help producing the products more effectively. Hyundai exports its high-end technology in automobiles globally. Technology exported from its headquarters and research centers worldwide have facilitated development of cars that are catered to the local market, such as the i10 Grand for the Indian market.
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