Essay About Initial Market Analysis And Significant Understanding Of Consumer Choices

Hyundai: Entry Strategy
HYUNDAI: ENTRY STRATEGYHyundai initially started exporting its cars to Canada in 1984. Slowly by 1986, it expanded its exports to entire North America including United States. After gaining significant understanding of consumer choices, Hyundai established its first plant outside its home country in United States in 1986. Faced with low sales, initial market analysis suggested low quality+bad service+Negative brand image as major reasons for poor performance. Thus, they started focusing on a niche lower end customer segment and high quality through its Excel car model. Thus they followed a glocalization system in understanding and adapting to the demands of the product market in countries and followed building their own subsidiaries after initial success in direct exporting.In 1996, the company made its move towards developing countries by focusing on India. It studied the market for one year before venturing into Indian market. They talked to vendors, dealers and customers to get a thorough knowledge of the industry. They also conducted a survey, where customers were asked to rank their preference for cars by the country of origin. So, while the company had initially planned to launch Accent in India, they ended up launching Santro as the first car based on the survey findings. The company established its first plant in Chennai in late 1996. Hyundai was the first foreign company to establish its plant in India. Thus, the company focused on identifying and treating institutional voids in developing economies. In this case, the company identified the need and potential of middle class segment in India and based on the infrastructural condition of India, they came up with the compact model. Thus they focused on outside side in understanding the product market in emerging countries and followed building their own subsidiaries.