Pick A Firm And Examine Its Foreign Markets Entry Modes------hyundai India – Essay Example
Market Entry Strategies for Hyundai in India It has been observed by the leading economists and the strategic thinkers all across the globe that India has been turning out to be one of the most powerful nations in terms of economy and technology. The country has experienced substantial increase in its per capita earning and the standard of living has risen by considerable extent. Also, political stability in the country has provided hopes for continuous growth. Such factors have led the major auto manufactures of the world to target India as the potential market in the recent past. Hyundai, Ford and Toyota have entered India to tap its huge market. There are several processes to enter into the Indian market namely forming joint venture with any Indian company or by procuring license. The foreign company can also simply export its product to India or invest in direct projects.
The analysis of the sales figures of various companies suggests that Hyundai Motor Company has been very successful in its objective. The Korean auto giant formed a wholly owned subsidiary named Hyundai Motors India Limited (HMIL) in India to operate in the country in the year of 1996. Prior to the launch in India, the parent company conducted thorough research about the Indian markets in terms of preferred product and price. The company also developed special technology that would fit the roads and the climate of India. The result of such extensive research paid off really well as the flagship product of Hyundai Motors India Limited, Santro, became second largest selling car within one year of its launch just behind Maruti. Therefore, it can be said that the entry strategy of Hyundai in India has been effective and efficient.
Neela, Radhika A. & Gupta, Vivek, “Hyundais Marketing Strategies in India”, February 28, 2010, ICFAI Center for Management Research, 2004,
Quick MBA, “Foreign Market Entry Modes”, February 28, 2010, Strategic Management, 2007,