Globalization Strategy Of Hyundai

The current issue in the world economy is

characterized by globalization. Corporations have

built up a world-wide network economy by

promoting production and trade. An important

cause for the globalizing trend of the world

economy lies in relocation of production sites and

management strategies of business. Firms need not

only partnership with foreign companies in the

form of direct investment and joint ventures, but

they need also to develop cross-border buyersupplier

relations. These trends also provide

opportunities for the sharing of risks and costs in

R&D and production. Globalization is driven by

strategic alliances that reflect a shift of company

strategies.

Globalization is an increasingly important

aspect of the automobile industry. In the past

decades, the automobile industry has been one of

the mains driving forces in globalization. The

pattern of globalization followed by the major car

makers can so far be split into three stages. The

first stage is export. At this stage the goal is to

create a car that fits into a worldwide car category.

The second stage of globalization comes after the

expansion of export. This is the setting up of

transplant in major market regions. The last stage

of globalization is complete localization of

transplants on one hand and the establishment of a

global business network on another hand.

In the following, I would like to first of all

investigate specific firm organization and interfirm

market relations to which the globalization

strategies of Hyundai must adjust. Then, I will

explore the transition of globalization strategy from

transplants in the core market to set-up the KD

production site in periphery regions from 1985

through 1995. There was a clear change in

Hyundai's globalization strategy at the end of the

1990s that has been primarily built by Global Top-