Introduction
Hyundai Motor Company is one of the largest automobile manufacturers in the world, with a presence in over 200 countries. The company has been operating in India since 1996 and has become a major player in the Indian automobile industry. Hyundai’s success in India can be attributed to its focus on localization and its ability to adapt to the unique characteristics of the Indian market.
Localization as a Business Strategy
Localization is the process of establishing the most adequate system in the target market according to the given environment to produce the most viable product in the market. In emerging markets, localization is essential because these markets are characterized by underdeveloped institutions, also known as institutional voids. Hyundai has been successful in India because it has been able to create a local value chain and ecosystem that has allowed it to better understand the market and take the most appropriate actions needed.
Hyundai’s Strategies in India
Hyundai’s success in India can be attributed to its focus on localization and its ability to adapt to the unique characteristics of the Indian market. The company has implemented several strategies to achieve this, including:
- Massive production in India
- Over 70% localization of parts within four years
- Transferring technologies to India
Conclusion
Hyundai’s impact on emerging markets, particularly India, has been significant. The company’s focus on localization and its ability to adapt to the unique characteristics of the Indian market have allowed it to become a major player in the Indian automobile industry. By creating a local value chain and ecosystem, Hyundai has been able to better understand the market and take the most appropriate actions needed. As emerging markets continue to grow, it is essential for multinational businesses to understand the market and take the necessary steps to succeed.