Hyundai Market Strategy

The 3 entry modes present different advantages and drawbacks, Franchising Strategy showed low control in the operations, low risk of exposure, low investment and high support from the local partner. Joint Venture entry mode indicated moderate-high investment, moderate risk, medium exposure and moderate control. Lastly, Greenfield entry mode denoted high risk, high investment, high control of the operations and high exposure.

partnership to continue, in the event a partner withdraws from the group. Similar to sole proprietorship, general partnerships tend to have a difficult time rounding up funding and resources, since most of the necessary capital comes from each partner's personal assets. This in turn may hinder longevity and growth of the organization. 4. Control In a typical general partnership, all partners will have equal rights and control over the business. It allows any partner to act on behalf of the business to make decisions and negotiation with

The aim of this essay is to discuss the advantages and disadvantages of setting up a wholly owned subsidiary (WOS) instead of a joint venture (JV). There are numerous studies and research papers done on which entry mode is best in different situations, but there is no simple task deciding which is the best unless one can see into the future. JV and WOS are two completely different entry modes with their distinct down- and upsides. Entering a new market gives both great opportunities and involves high risk. There is much at stake but if one choose wrong entry mode it can cost the company tremendously, that is why one should not take this decision based on a few factors.

It is because through the joint venture, the company is more familiar with the situation of the company there. The negative outcome is that the management system different between the company. So it is hard to make a decision making. It is because there is different opinion of each person.

Many businesses and organizations may decide to form a joint venture. A joint venture involves establishing a third company (child), operated for the benefit of the co-owners (parents) (Pearce & Robinson, 2004). There have been many successful joint ventures among many businesses. Best Buy announced that they would be strategically forming a joint venture with Britain’s cellphone retailer, Carphone warehouse. The CEO of Best Buy stated that the joint venture between the two companies would be a financial gain for the company in the European market. This merger between the two companies are said to be a major factor that will differentiate the company from the competition (Washington Post, 2008).

Throughout this report there is a large emphasis on where Hyundai is in the market now. This will firstly be implemented in the situational analysis outlining the competitor and market analysis. It is obvious with over 30 years of Hyundai being in the business, not only do they have a large customer base but they also have a wide range of loyal customers that continually renew their car every few years.

Joint ventures have further benefits. Joint ventures are based on sharing individual ability and resources for the purpose of achieving a mutually beneficial objective. Sony gains access to Ericsson’s market share and their network of infrastructure and handset technology. Ericsson can acquire Sony's experience on consumer electronics, fashionable designs and production processes. Hence, the joint venture overcomes Sony's low market share and strengthens Ericsson's ability of research and product development. Thus joint ventures resolve the opportunism issue with OEM, licensing and franchising.

Just as there are pros to joint ventures, there are also cons. The cons to entering into a joint venture are flexibility, technology transferred, employees, and loyalty to the U.S. partners (Hall, 1984).

Market entry strategies can be divided into two broad categories: indirect and direct market. In choosing either of these, one should have analyzed the company in context using various analytical tools. The analysis should focus on the

This essay emphasises about the international market entry and three popular modes of entry provided with their influences and significance towards the growth of the organisations. In addition to, applications of these modes of market entry have been briefed by taking examples of existing organisations, strategies towards the choice of particular entry mode and its effects on organisation’s growth.

Joint venture mode help the business to growth faster and increase productivity when the partner are efficient and skilled, thereupon the Mozal Company is efficiently, quality and safety

On the other hand, the risk of disagreements between partners. People are expected to have different ideas on how to run the business. This leads to disputes, besides from harming the business, but also the relationship between partners. Secondly, the partnership provides unlimited liability, meaning each of the partners shares the financial risks and liability of the business. Lastly, since partners share profits equally. This may lead to arguments that some partners aren 't putting enough effort in the running of business, but still gaining the equal amount of rewards.

Joint Ventures tend to be equity-based i.e. a new company is set up with parties owning a proportion of the new business. There are many reasons why companies set up Joint Ventures to assist them to enter a new international market: Access to technology, core competencies or management skills. For example, Honda’s relationship with Rover in the 1980’s. To gain entry to a foreign market. For example, any business wishing to enter China needs to source local Chinese partners.

* the objectives of the venture are not totally clear and communicated to everyone involved

Mercedes-Benz India Pvt. Ltd. is a wholly owned subsidiary of the German Daimler AG. It is founded in 1994, with headquarters in Pune, Maharashtra. The company has a commercial vehicle plant outside Chennai, which it is currently upgrading with an investment of €700 million. The passenger cars manufacturing plant is located in Poona, same as the headquarters.