Hyundai's Capabilities

Hyundai’s Capabilities

Over the last decade, Hyundai’s organizational capabilities have been a significant force behind company’s success. The Korean automotive company has now become world’s 4th largest automotive company.

Firstly, Hyundai’s focus on effective strategic planning and efficient marketing of the cars is one of the major reason for the success, Hyundai has enjoyed in recent times. After company’s downfall in late 1990’s, strategic effectiveness has played major role in revival of the company. Company started to offer comprehensive warranty in the beginning and took steps to improve its quality ratings. Once trust for the brand was built among customers, Hyundai incorporated other capabilities such as design and efficient marketing of the cars which enabled Hyundai to recapture its lost market share.

Hyundai has a strong design capability. They believe that their cars should make their customers feel younger. This the reason why Hyundai’s design team comprises of young designers who have enabled Hyundai to achieve edgier and more distinctive design for their cars. Hyundai is the first company in the industry to shift its design base from familiar, pragmatic, aerodynamic shapes to fluidic designs based on natural shapes.

Another capability that has helped Hyundai to successful is innovation. Hyundai has been able to develop high performance engines which also have high fuel efficiency. According to U.S. environmental protection agency, Hyundai has best fleet fuel efficiency. Unlike other automobile manufacturers, Hyundai keeps on introducing latest and high-end-features like Push-button ignition, rear vision video monitors, and automatic headlights in its less expensive vehicles which has given it a competitive advantage. Company is able to provide these high end features at such a low price because it earns its margins by limiting promotional discounts for buyers as their cars are already in good demand so the company doesn’t see a need to provide buyers with incentives.

Hyundai focuses highly on its hiring capabilities. It has been hiring top level car designers because of which it has been able to achieve distinguishing designs for its cars, like ‘Fluidic Concept’ based on natural shapes. Hyundai also pays high wages to its employees as compared to other players in the market, which has allowed it to capture the best talent in the automotive industry.

Hyundai’s work culture has