Factors that have contributed to Hyundai Motor's success:
• Brand Equity:
The initial failure of the Excel propelled Hyundai Motor to improve their product quality and regain consumer confidence by "adding an unprecedented 10-year/100,000-mile powertrain warranty—assurance to buyers that the car wouldn't fall apart on the turnpike while speeding along in the passing lane" (Gidman 2007).
Due to its efforts, Hyundai Motor was able to reposition itself as a producer of affordable cars (with quality), and consumers overall confidence in the Hyundai brand improved. As a result, Hyundai Motor has since been recognized as a producer of quality cars which are reliable and affordable; being ranked 72nd in the 2007 Best Global Brand survey. Bunkley (2008) quoted senior director of automotive testing at Consumer Reports, David Champion, that Hyundai has made "phenomenal progress" in the quality and reliability of its vehicles.
Being focused on the consumer, and improving in areas such as quality, durability, value and warranty programs have contributed to the success of Hyundai Motor's brand equity. The company's focus on affordability and practicality, unlike its competitors (e.g. BMW choosing to focus on technology), set it apart from its competitors and contributed to its success. (Vasilash 2006)
• Product Differentiation:
By improving (augmenting) its cars' exterior design and engineering, while still maintaining its affordability, made it appealing to consumers and improved its brand image (from being the "Worst Car Ever Made"); giving it a competitive edge. For example, "Hyundai's sleekly redesigned flagship" - the Sonata - was equipped with "six airbags, electronic stability control and a long list of standard equipment, all for less than $20,00″ (Muller & Meredith 2005). Hence, according to Muller & Meredith (2005), "Hyundai is now dictating trends that others must follow": the company's "success with cheap cars inspired General Motors to buy its own Korean company, Daewoo, to try to match Hyundai's offerings", and "Hyundai's breakthrough ten-year, 100,000-mile warranty spawned extended warranty offers by Chrysler and Mitsubishi"...Read more>>
• Brand Equity:
The initial failure of the Excel propelled Hyundai Motor to improve their product quality and regain consumer confidence by "adding an unprecedented 10-year/100,000-mile powertrain warranty—assurance to buyers that the car wouldn't fall apart on the turnpike while speeding along in the passing lane" (Gidman 2007).
Due to its efforts, Hyundai Motor was able to reposition itself as a producer of affordable cars (with quality), and consumers overall confidence in the Hyundai brand improved. As a result, Hyundai Motor has since been recognized as a producer of quality cars which are reliable and affordable; being ranked 72nd in the 2007 Best Global Brand survey. Bunkley (2008) quoted senior director of automotive testing at Consumer Reports, David Champion, that Hyundai has made "phenomenal progress" in the quality and reliability of its vehicles.
Being focused on the consumer, and improving in areas such as quality, durability, value and warranty programs have contributed to the success of Hyundai Motor's brand equity. The company's focus on affordability and practicality, unlike its competitors (e.g. BMW choosing to focus on technology), set it apart from its competitors and contributed to its success. (Vasilash 2006)
• Product Differentiation:
By improving (augmenting) its cars' exterior design and engineering, while still maintaining its affordability, made it appealing to consumers and improved its brand image (from being the "Worst Car Ever Made"); giving it a competitive edge. For example, "Hyundai's sleekly redesigned flagship" - the Sonata - was equipped with "six airbags, electronic stability control and a long list of standard equipment, all for less than $20,00″ (Muller & Meredith 2005). Hence, according to Muller & Meredith (2005), "Hyundai is now dictating trends that others must follow": the company's "success with cheap cars inspired General Motors to buy its own Korean company, Daewoo, to try to match Hyundai's offerings", and "Hyundai's breakthrough ten-year, 100,000-mile warranty spawned extended warranty offers by Chrysler and Mitsubishi"...Read more>>
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