Hyundai Motors (Case)

Hyundai Motors (Case) - Rachel Riddle Cierra Page Jeff...

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Rachel Riddle Cierra Page Jeff Bellback Caron McCowin Errol Jackson Group B Case Analysis Comparative Advantages Hyundai motor company is a South Korean automaker founded in 1967 by Chung Mong Koo as a family company. Hyundai is currently South Korea’s largest automaker. Hyundai has locations in several countries; when looking to build another plant Hyundai considers certain natural comparative advantages of countries. South Korea was an excellent place to begin building an automotive company because it is rich in resources. South Korea has low-cost knowledge workers, plenty of capital resources, and an entrepreneurial spirit that are natural comparative advantages. The South Korean government has close ties with domestic businesses and because of that it will give sponsorship to certain industries such as the automotive industry. The government in South Korea is also very supportive of innovation and research and development. The demanding consumers in South Korea expect very high quality product for a small price which prepared Hyundai for entering into international market. When Hyundai began investing in plants, distribution centers, and headquarters abroad, they looked for countries with similar comparative advantages. This is why Hyundai invested in India, which has low cost knowledge workers and low cost materials to build the cars, another thing South Korea lent itself to well. Hyundai also invested in plants in Turkey and China because of the low cost, high quality labor. Countries that have qualities similar to South Korea, like Turkey, India, and China are the best countries to produce vehicles in
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This essay was uploaded on 04/04/2008 for the course IB 210 taught by Professor Kunalbanerji during the Fall '07 term at Eastern Michigan University.

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Hyundai Motors (Case) - Rachel Riddle Cierra Page Jeff...

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