2.0 Environmental Analysis
I. Low Brand Recognition and Brand Power (Late Entrant)
In automobile industry, brand image signifies an important entry barrier. Which would also affects in many aspects, such as price of car and target consumers. Moreover, Hyundai Motors still low brand recognition as compared to other larger firms which causes the firm harder in grabbing a wide range of buyers. As the low brand recognition, price depreciation rate is very high in comparison to Toyota or Honda. Therefore, it limits new car buyers from buying Hyundai.
II. Technological Advancement
Investors that invest in Hyundai are favored toward increasing the market share and ...view middle of the document...
The company should find counter plan.
I. Foreign cars imported in cheap prices
In 2010, there were many low priced foreign cars entered the domestic market. Moreover, Hyundai’s new model’s prices have been slightly raised. So from next year, there’s no big price difference between foreign car and domestic car. This situation will change the domestic market share. Until now Hyundai hold around 75% of domestic market, but these days, customers complains about Hyundai’s monopoly and price policy. And now, they have other options, so if Hyundai wants to hold their customers, they have to come up with new strategies.
II. Overflow of Used Vehicles
Current U.S. used car market is very saturated due to the huge influx of lease returned vehicles and car owners looking to sell their vehicles. This causes an overall drop of all used car available. This drives the residual values of Hyundai vehicles much lower than before. Given that this was Hyundai’s weakness for a long time, further losses in the market share from the pool of consumers looking forward to sell their vehicles...