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KIA Motors Case Study Analysis

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KIA Motors Case Study

In the year 2019, Kia motors entered into the Indian Market the reason behind writing this case-study is to emphasize on the success story of the company. It has been noticed that even in this pandemic situation when everything has slowed down and in a lockdown status, the company is able to sale their cars in the country. It is regarded as one of the fastest car sellers where it was able to sell around one lakh units in a span of only 11 months after it entered the Indian Market. Assignmenthelp.us offers case study help on Kia motors.

Background of the company

Kia Motor Corporation, or KIA, is a South Korean automobile company that was founded in 1944. They are the country's second-largest automobile manufacturer, behind Hyundai Motor Corporation, and are based in Seoul. They were partially bought by Hyundai due to the quantity of automobiles they sold in 2015 (3.3 million globally). In exchange, Kia received a minority stake in 20 Hyundai companies. Kia Motors entered the US market in 1992 and took a cautious approach. They took it one step at a time, expanding one region at a time. By 1995, they had over 100 dealerships spread over 30 states in the United States.

However, the economic crisis in 1997 forced them to declare bankruptcy. They linked up with Hyundai once more in the United States, but this time Hyundai bought a 51 percent interest in Kia. In exchange, Kia owns 22 Hyundai businesses. In 2014, Kia received positive press when Pope Francis honoured the business while riding in a Kia Soul, a tiny automobile. It's thought that they drew more attention than usual. Kia presently produces sedans, minivans, SUVs, and hybrid cars, with the Kia Forte being the company's best-selling model. We are also providing Kraft Foods UK case study solution.

The Powerful Brand Image

They broke ground on their first production factory in the Anantapur region of Andhra Pradesh, India, in 2017 and debuted it at the 2018 Auto Expo in January. India was the world's fifth largest economy at the time, and the auto markets were upbeat. They had not yet released any cars in India, and they didn't even have a ready facility at the moment. Neither of these were going to be ready for another year.

But why was this a wise decision? Instead, they chose to show off what they were selling in other areas of the world to automobile aficionados. At the exhibition, they displayed 16 of their finest models, allowing potential buyers to try out the goods. At the same exhibition, they unveiled a teaser for their forthcoming SUV (the first of its kind in India). Basically, getting people psyched about what's coming next. This is where they establish the awareness, if a careful analysis is made from the standpoint of a "Marketing funnel." We are also providing Volkswagen case study solution.

CSR Program – Green Light Project, India

Kia launched a global CSR enterprise, the ‘Green Light Project,' in India, precisely a year after the Exposition. In collaboration with the Regional Government, this was introduced in the Anantapur district of Andhra Pradesh. This was done in order to instil vocational and educational training at three local educational institutions.

  • Save the Children (a local non-profit organisation) was the first group with whom they collaborated to encourage children's rights, welfare, and education, as well as to recover classroom settings.
  • The second organisation with whom they collaborated was the Anantapur Industrial Training Institute (ITI), over here Kia assisted in the development of a driver's licence training programme for 100 students each year. They even went so far as to assist these 100 students in improving their job prospects.
  • The third organisation with whom they collaborated was the government, where they assisted locals with educational infrastructure (books, materials, and many more).

Strategies of Marketing

In order to expand its reach, the firm took use of the digital potential. Tiger Shroff, an aspiring actor, was chosen to advertise Seltos. The pick was ideal because the majority of their audience had a direct connection with the ambassador and helped them out.

Seltos' success was so broad that it functioned as a springboard for the company's next luxury multipurpose vehicle (MVP) Carnival, which will debut at Auto Expo 2020. It garnered a record number of pre-orders. In the first month after the introduction, Kia sold 15,644 units. If figures are to be believed, they were the third largest automaker in February 2020, with a market share of 6.24 percent, beating both Tata Motors and Mahindra & Mahindra. It was unexpected to find that the auto slowdown wasn't having as much of an impact on Kia's sales as it did on those of the other car makers. We are also providing HSBC case study solution.

Swot Analysis of KIA

Strengths

  • Product Portfolio: Kia Motors provides a diverse range of vehicles, including sedans, coupes, sports cars, passenger cars, SUVs, and crossovers. Optima, Forte, Sedona, Cadenza, Sorento, and Niro are some of their brands.
  • Brand value: Kia is a well-known brand throughout the world, with a market capitalization of 6.7 billion dollars, up 6.7 percent from the previous year. The company's brands have also constantly been listed in the top 50 global brands.
  • Positioning- Kia positions its automobiles as vehicles capable of exceeding consumer expectations in terms of driving experiences. In terms of style and performance, their vehicles are also outstanding.

Weaknesses

  • Limited reach: Compared to its competitors, Kia Motors has been unable to attract a larger audience, limiting itself to smaller and specialist sectors.
  • Brand Identity: Despite being a well-known brand in its home market, Kia Motors has struggled to establish a good brand identity or image in Europe and the United States, and has been generally unsuccessful.

Opportunities

  • Improved infrastructure: Emerging economy governments have made a concerted effort to improve road conditions and increase traffic safety. Intercity connection has been improved thanks to roads, which has improved long-distance driving possibilities as well.
  • Green cars: Kia Motors has put a lot of money into research into alternative energy vehicle choices, which is a subject that many governments and environmental campaigners are championing. As demand for hybrid, green, and environmentally friendly automobiles rise, these initiatives will bear fruit in the near future. This is a fantastic chance for the business.
  • Market potential: According to research, emerging markets will be a major source of revenue for automakers in the future. Demand will be higher in China and India than in the United States or Europe.

Threats 

  • Competition: The automotive market is very competitive. Toyota, Honda, and Nissan are the company's primary competitors.
  • Regulatory framework: With worries about global warming and the depletion of fossil fuels, the automotive regulatory system is expected to be tightened, with a focus on quality and environmental compliance. Automakers may incur higher costs as a result of this.

Pestle Analysis of KIA

Political factors

Kia Motors' long-term viability and profitability are heavily influenced by political issues. Political stability, changing policies, taxation, trade restrictions, and intellectual property protection are all part of a country's political environment. These political issues must be taken into account by Kia Motors.

Economic factors

Economic elements such as foreign exchange/interest rate, labour market conditions, inflation, and saving rates, among others, are critical for Kia Motors to understand since they influence the country's entire economic climate. Kia Motors can predict the growth trajectory of the industry and organisation by having a thorough grasp of the economic environment.

Social factors

The cultural norms, values, and trends have a significant impact on organizational culture. Through educated PESTEL analysis, Kia Motors can develop successful marketing messages and achieve business objectives by understanding demographic trends, power structures, consumer purchasing habits, and common values. The information collected from such can be used by Kia Motors' marketing department.

Technological factors

The relevance of comprehending technical aspects throughout the strategic decision-making process has grown as a result of fast technology progress and dissemination around the world. Kia Motors can benefit from a thorough examination of the technical environment. capture technology trends in order to get specific economic advantages, such as increased profitability, increased innovation, and reduced costs. As a result of which the operations are also enhanced.

Environmental factors

A lot of environmental factors affect the development of the company and the company adheres to the laws related to environment so that further harm is not caused. Distinct markets have different environmental norms, rules, and regulations. Kia Motors' foreign presence necessitates careful consideration of these variations in order to prevent unfavorable situations. Before opting to enter a new market or launch a new product line, a thorough environmental investigation is required.

Legal factors

It is very important for Kia to study in detail about the legal market of the country before entering in order to ensure that they do not do anything that is against the countries law. It is very important for the company to know about the regulatory structure of the country they want to do business. If Kia do not have proper knowledge it might lead to problem. For example, a loss of economic advantage as a consequence of intellectual property rights violations, as well as a tarnished corporate image as a result of violations of consumer, employee, and environmental protection regulations.

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