Operation Strategy: Hyundai Automotive Industry Question 1. The automotive industry is one of the main ingredients of Korea's national growth. In 2004, Hyundai Motor Company recorded sales of $57.2 billion in South Korea, making it the country's second largest company. It is also the seventh largest automotive manufacturer in the world. In 1998, Hyundai acquired rival Kia Motors. This acquisition introduces the first element of the company's competitive strategy. The Hyundai car company today aims to establish clear and distinct identities for the two brands so that they do not compete with each other in the market. The company's competitive strategy is influenced by the differentiation strategy within the two brands of the same automotive group. However, this strategy also affects Hyundai Motor Company's overall strategy in the automotive market. The Hyundai brand is positioned as the "refined and safe" brand. Kia, on the other hand, has a more sporty and youthful brand identity. However, the competitive strategy is also influenced by the lower cost strategy. While Kia previously built vehicles on Hyundai platforms to save money, the automaker is now developing "standardized integrated platforms" for both brands that allow for different styles. and the Korean government imposing an excise tax on heavy vehicles), Hyundai and other Korean automakers have become more aggressive in terms of pricing and quality and have begun to develop larger cars and broaden their product ranges to meet different customer preferences. Hyundai is known for its line of affordable cars... middle of paper... process. Second, Hyundai's corporate business is strongly linked to the Kia acquisition. The company is taking advantage of economies of scale and managing not to standardize cars and lose the identity of each brand. This allows the company to maintain its own brands for full vehicle ranges and maintain individual sales and marketing approaches in the Korean and global markets. In this context, Hyundai will focus on increasing the synergistic effects resulting from the acquisition of Kia Motors (and subsidiary Asia Motors) through the shared platforms of Hyundai and Kia, the exchange of auto parts, the joint use of retail outlets and the reduction of the development of new car models.Sources:l French Embassy in Korea, economic and commercial office Business week Onlinel The Economist Onlinel Hyundai Motor Companyl Websitel Strategy Magl Challenge Magazine