Risk Taking and Opportunistic

Hyundai thrives in an environment of unpredictability and uncertainty. Continual change and

impromptu behaviour is encouraged at all levels throughout the organisation. Managers are
trained to provide custom-made solutions for specific problems in the strategic planning
process. Thus, they are especially adept at turning crisis into opportunities by making
strategic managerial decisions.

One example is the Hyundai Assurance program that was introduced in 2009. During the
recession, Hyundais sales was dismal due to low car demand, as people feared losing their
jobs. To mitigate this, the management made a non-programmed decision to introduce the
Hyundai Assurance program, allowing for customers to return their cars should they lose
their jobs within the first year. This was undoubtedly a huge risk as not only did it not
guarantee a sales increase, it could also mean significant losses for Hyundai as it incurs
expenses with every car returned. However, this risk paid off as Hyundais sales increased
by 9.83% in 2009 and 23.7% in 2010. Thus, not only did the Assurance program help to
increase Hyundais profits, it also established Hyundais reputation as one that is consumercentric. This has led to a strengthening of Hyundais brand name, as illustrated in the SWOT
analysis.
Thus, Hyundais risk-taking strategy and consumer-oriented responses, which forms its core
competency, has largely contributed to its success.
Product Innovation
Over the years, Hyundai has moved from using a cost leadership strategy to one that
gradually adopts a differentiation strategy. This involves building a competitive advantage by
being unique in the automobile industry with the use of innovation and technology. It has
been persistent in its efforts to identify new areas for improvement to enhance the design
and functionality of its products.

For example, in 2014, Hyundai launched the new Eqqus car model which comes equipped
with new technological features that boosts both performance and safety. The ultimate goal
of Hyundai Motor is to create new social value with technological innovation, and become a
new leader of production innovation in the automobile industry.
The success of Hyundai's innovation efforts is also partly due to the managements rapid
decision making and implementation process. This is owed to Hyundais top-down
management style. Such rapid decision making has largely contributed to the success

of Hyundai as it allows them to meet the ever changing demands of the automobile
market quickly. This had enabled Hyundai to release 21 new car models in just 5 years.