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Marketing a Korean Car in China

Hyundai is a Korean company which manufactures industrial equipment and supplies, but which also manufactures automobiles which it sells not only in its native country, but which it also exports to other countries. Recognizing that the American and European markets have largely become saturated, Hyundai has expressed interest in pursuing the Chinese market, a market which is opening up access to foreign companies (with strict regulations, however) and which has a population base rendering it the envy of marketers around the world (Taylor, 1997, p. 114).

Hyundai, and Korean car makers in general, have an advantage in marketing to China which makes their products especially attractive to the Chinese market. First of all, with the exception of Japanese competitors, the geographic proximity of Korea and China gives Korean companies an advantage over their Western competitors in terms of transportation costs. Where European or American car makers must export their products over considerably longer distances, thus incurring higher transportation costs, Korean companies are already wellpositioned to ship their products directly to the market.

In addition to logistical advantages, Korea has recently experienced an economic boom not unlike that which may be developing in China. As China has begun to open its market to foreign goods (although it continues to regulate such trade in a strict manner), there is considerable opportunity for new products to be introduced. Increased trade is bringing with it increased demand (and the resources to purchase foreign goods) and helping to create a market for items such as automobiles and other "luxury" goods which would not have been successful in the nation just a few years ago (Zoia, 1995, p. 53). Having recently enjoyed much the same growth in its own nation, Hyundai is uniquely positioned to take advantage of the new demand in China for its products.

Because of its size, Hyundai is also...

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Marketing a Korean Car in China. (1969, December 31). In LotsofEssays.com. Retrieved 01:46, March 29, 2024, from https://www.lotsofessays.com/viewpaper/1695089.html