Analysis Of Hyundai In India

HYUNDAI’S ENTRY INTO INDIA’S MARKET

The barriers of entry faced by automobile companies in India are at relatively high levels of import duties, a nascent ancillary industry, and product modifications required for relatively poor road conditions and high levels of heat and dust. (Avinandan Mukherjee, pg 36)

Hyundai’s mode of entry into India was a green field entry. Hyundai started from scratch to enter the Indian market. A green field entry would mean that Hyundai would have to invest 100% of their resources into India inclusive of their patented knowledge, capital and more. The amount of resources Hyundai would need to set up a manufacturing plant in India goes up to USD $500 million in investments. Their adaptation strategy for the Indian

The belief was to be a successful company in the competitive automobile industry was to be self-reliant. This belief has influenced many of Hyundai’s major decisions since 1967. These decisions include producing early models (Pony, Stellar and Excel) with minimal foreign investment.

Hyundai ended a joint deal they had with Ford back in 1968 as Ford would not allow them to have a managerial leadership. Hyundai also backed out of merger negotiations with General Motors in 1979 and with Sachan in 1981. They focused their efforts into their R&D to allow themselves to better understand the different market structures and see what they can do to achieve the competitive advantage. Due to these decisions, they succeeded in their domestic market, as well as expanding into international markets, like India and USA.

Hyundai exercises many R&D activities which allowed them to have a competitive edge over their competitors. This is sensitive information as they would not want any competitors knowing what new products they are coming up with. It also reduces the chances of them creating any new competitors. Also, a green field entry is appropriate when there is sensitive information involved and when foreign venture situation is ideal. This means that the perceived risk is low and the company’s overall capability is high with a foreign location that is very

According to the Federal Parliament in 1963 (“uOttawa”) the Official Language Act that was passed legally establishes that Hindi and English are the official languages to be used in Congress. They also allowed other states in India to decide on what they would like as their own official language. The Act was amended in 1976, to establish the Official Language Rules, which was amended again in 1987. (“uOttawa”)

According to Hall, E.T (1976), there are different contexts in different cultures. There is the high context culture which helps people understand the rules, which are characterized as “unwritten”. Cultures that are high context emphasizes on non-verbal messages and views communications as a mean to promote a smooth and harmonious relationship. Some examples of cultures in high context cultures are Asia, Middle Easters and South American.

Low context culture is usually meant that very little is taken for granted. More explanation is needed thus, there is a lesser chance of misunderstanding a particular task on hand. They rely on an elaborative verbal explanation, putting much emphasis on the spoken language. Most of the western countries are low context