Hyundai

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Strategic alternatives and Recommended Strategy:
The first strategic alternative is that Hyundai Motor Company should make luxury cars and market them in developed countries. The pros of this strategy are that Hyundai Motor will position itself as a premium maker of cars. In addition, there will be higher per car margins for Hyundai Motor.
Cons are: Hyundai Motor may have limited demand for luxury cars. The reason is that there is global economic weakness and car purchases are made with cost focus as an important issue.
The second strategic alternative is that Hyundai Motor should make investments in new countries where it has lower presence and should develop those markets. The pros of this alternative are that if Hyundai Motor is able to establish itself in emerging markets, it will have loyal customers and will have a long term relationship with the customers in those areas. The cons of developing new markets is that currently because of global economic crisis newer markets have become costly to open up and have limited demand. Further, global car makers are each seeking to sell their cars in such markets. Another con is that developed countries often ship and sell used cars to these countries.
The third alternative is that Hyundai Motor should focus on small cars and cars that are hybrid or run entirely on electricity. The Pros of this strategy are that there are regulations being imposed on car emissions and people prefer to buy hybrid or electric run cars. Further, cars made by other manufacturers have received a positive response. For example, Prius made by Toyota has got a good response from consumer. The cons are: Considerable research and development expenditure is required to develop hybrid or electricity cars. In addition, as other car makers are also involved in the making of hybrid and electric cars, Hyundai Motor will not get first mover advantage.
Recommended strategy: The third strategy namely "Hyundai ...