The Road to the Self-Reliance New Product Development of Hyundai Motor Company
Author(s)
Hyun, Young-suk
Date Issued
September 11, 2002
Abstract
This paper traces the new product development of Hyundai Motor
Company, Korea, which, since its foundation in 1967, has maintained the
self reliance strategy, particularly in new product development. Business
strategy of Hyundai contrasts sharply with other auto makers in developing
countries as well as to other Korean makers. In spite of a late entrance to
the auto business, this unique strategy has led Hyundai to becoming a market
leader in Korea and to becoming the thirteenth producer in the world --
recording an output of over one million in 1994. Hyundai Motor has a
aggressive plan with a goal to be within the 10 top auto makers by 2000
(Global Top-10 plan) but the process of accumulating the technological
resources the company needs is not yet well established.
The intent of this paper is to provide readers with a basic understanding
of Hyundai's approach in new product development under internationally
oligopolistic markets and how it has accumulated technological resource
capability in relation with foreign alliances. The research method consists
of literature reviews of published sources on firm's activities--including
company history and interviews with development and management personnel. The
work will first overview the history and development of Hyundai, then will
produce case studies on Sonata (1988), New Grandeur (1992), Accent (1994) and
the Alpha engine (1991).
Description
June 1995
Subjects
new product development
Hyundai Motor Company
Korea
self-reliance
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