The Hyuandai Case

1458 Words6 Pages
Hyundai – The Struggle for International Success Group Cupcake Sandhya Boedhoe Meredith Cumberbatch Marciano Lie A Young International and Caribbean Business Environment (SMEG6000) Mr. Balraj Kistow March 16, 2015 Hyundai – The Struggle for International Success Case Questions 1. The roles of comparative and competitive advantage in Hyundai illustrated by some examples of natural and acquired advantages that are employed by Hyundai A Comparative advantage of a country refers to features such as availability of land, low cost labor, high skilled workforce, abundance of natural resources etc., that create an advantage for the industry in that country, for example the availability of very high skilled workforce and the low cost of labor in Korea. A competitive advantages gives a business the capability to distinguish itself from the competition or to put itself ahead of the competition based on the specific knowledge or skills they possess or the strategies that they implement. Clear examples of advantages that have helped Hyundai to become such a global leader include: Natural advantages: * Weak Korean currency; The international exchange rate for the weak Korean Won is one of the advantages for Hyundai, as it reduces the price for the car on the global market. In the US for example, due to the exchange rate, the Hyundai cars are far cheaper than US of European brands. * Demanding nature of Korean; an interesting natural advantage for Hyundai is the demanding nature of the Korean, which pushes the company to keep on pushing for improvement and innovation. By fulfilling the needs of their home consumers, who are believed to be among the most demanding consumers worldwide, Hyundai automatically meets and even exceeds the needs of the global consumer. * Cost-effective labor; Korea has an abundance of highly skilled workers

More about The Hyuandai Case

Open Document