Kore Motor Industry
Korea motor industry
Dahl Ochola Owino 2nd Year
George Onyango
24, 12, 2012 Executive summary
The motor car industry has experienced expansion as result of the government support and the management strategies of the particular firms. This report analyses the motor industry in Korea especially the evolutionary learning of two companies, the firms’ strategies and the industry policy of the country, the report further looks at the various phases that the firms in the industry undergone for them to produce their first car domestic models through the joint venture with other international firms. Korea a developing economy lauded for the performance that enabled it survive the competitive market that many developing economies failed. The president’s directive and the internationalization strategies have also been captured.
Multinational companies have dominated Korea motor car industry. A multinational company is a firm with operations in more than one country or region and is normally characterized by heavy capital investment (Murtha & Lenway, 1994). In Korea Hyundai and Kia controls about 81% of the motor car industry (Kim, 1998). For this to be achieved, these firms formulated and adopted strategies, advanced their technologies and worked closely with the government. In our analysis, Hyundai and Kia were evaluated and their competitive advantages evaluated to determine their strength and weaknesses in such a high competitive industry. A comprehensive analysis of these factors has been systematically captured in this report
To begin with, technology is a critical success factor in motor car industry. In Korea, Hyundai and Kia had to accumulate and advance their technology from one phase to another in a bid to improve their products quality. Hyundai motors sourced its technological knowhow from foreign areas with an objective of increasing its knowledge base (Kim, 1998). Whereas it was expected that none of the motor car companies in
Dahl Ochola Owino 2nd Year
George Onyango
24, 12, 2012 Executive summary
The motor car industry has experienced expansion as result of the government support and the management strategies of the particular firms. This report analyses the motor industry in Korea especially the evolutionary learning of two companies, the firms’ strategies and the industry policy of the country, the report further looks at the various phases that the firms in the industry undergone for them to produce their first car domestic models through the joint venture with other international firms. Korea a developing economy lauded for the performance that enabled it survive the competitive market that many developing economies failed. The president’s directive and the internationalization strategies have also been captured.
Multinational companies have dominated Korea motor car industry. A multinational company is a firm with operations in more than one country or region and is normally characterized by heavy capital investment (Murtha & Lenway, 1994). In Korea Hyundai and Kia controls about 81% of the motor car industry (Kim, 1998). For this to be achieved, these firms formulated and adopted strategies, advanced their technologies and worked closely with the government. In our analysis, Hyundai and Kia were evaluated and their competitive advantages evaluated to determine their strength and weaknesses in such a high competitive industry. A comprehensive analysis of these factors has been systematically captured in this report
To begin with, technology is a critical success factor in motor car industry. In Korea, Hyundai and Kia had to accumulate and advance their technology from one phase to another in a bid to improve their products quality. Hyundai motors sourced its technological knowhow from foreign areas with an objective of increasing its knowledge base (Kim, 1998). Whereas it was expected that none of the motor car companies in