Hyundai Thanks Chile EXPO Support

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Reference : The Korean Times(Internet)/By Kim Hyun-cheol, Staff Reporter/05-09-2008 16:59)

Summary

Kum Ho tire, the second biggest tire production firm in Korea, is accelerating its expansion in overseas market as they are challenged by the current competitive market situation which is changing very rapidly.
Their expansion is not only targeting Asia countries but also American market which is the biggest in the world.
The chairman of Kum Ho tire is seeing his company's successful enlargement as the only and the best key to survive among other competitors and he's trying to achieve this goal by minimizing cost of production both in overseas and domestically. He also commented on the current price raise and it was because of increased cost of factors of production and he promised that he will invest more money to make the production process more environmentally friendly.

Opinion

These days, the world is becoming smaller and smaller as the globalization shortens the distance among countries. As the reciprocal relationships between countries are getting stronger and stronger, they are more less-independent and more relying on one another. Especially for multinational companies, the importance of overseas market sometimes exceeds their domestic market because they find more demand there. Kum Ho tire has also found out that expanding their business in overseas is unavoidable as they see rapid demand increase in overseas market and they are doing it because they believe that their enlargement is the best way of producing high quality products at the lowest costs. I believe Kum Ho tires’ strategy is very appropriate and pioneering because world tire market is very competitive and it’s really hard to catch up if you fail to follow the market trend which is changing really quickly.
In my opinion, Kum Ho is very likely to experience successful years for at least next few years as their expansion allows them to produce good quality tires at lower costs. Also, Kum Ho’s reputation is increasing swiftly as more and more F1 machines are using their tires so people in overseas are very interested in and actually more and more people are willing to purchase Kum Ho. Therefore, I strongly believe that Kum Ho’s business expansion in overseas is very brilliant and will bring out a great result.
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