The automobile crises (2008-2010) affected European and Asian automakers but it was primarily felt in the American automobile industries. The U.S parts were mostly affected with recession than other auto manufacturers. The South Korean automakers which were not doing well even before recession got an opportunity to overtake U.S markets when they were affected with recession. The sales of “Hyundai”, one of leading manufacturer of South Korea were rising up. Hyundai successfully managed to overtake “Honda” in 2008 as world’s 5th largest automaker climbing 8th ranking in less than a decade. Even it has surpassed “Ford” as world’s fourth automaker. Hyundai Kia (car) at that time was in a lead and has a sharp increase in sales while other automakers saw sharp decrease in their sales. Not even Honda and Ford but “GM” was filing for bankruptcy.
South Korean Automakers turned this crisis into an opportunity. They provided more high quality and well designed vehicles. They offered customers who have lost their jobs to return a new-car purchase for a refund. Three fuel efficient cars viz; Kia Picanto, Kia ceed and Hyundai i30 attracted global customers at time of severe economic recession, rapidly rising oil prices and increasing environmental causes. Hence, the luxury and SUV manufacturers from U.S, Germany and Japan were less in demand due to the increasing oil prices. They also started improving brand awareness and introduced luxury vehicles such as Hyundai Genesis which received positive response and awards in press.
When the condition of U.S came to stable again, U.S again took the lead in the world of automobiles. This was of course going to happen. Here management students must do the same thing; they must find the alternate ways in which they can reap the benefits associated with first mover advantage. The learning lesson which comes out from this article for all the management students is always look out for opportunities as when it arises and ensure to cash in as when they come and make merry when the sun shines.
----------- Nikhil Ingale