Speed and sustainability when entering new market

Gwang Seok Kim, Young Hoon Lee

Research output: Contribution to journalArticlepeer-review

Abstract

When constructing a factory to enter new markets, the optimal size to respond to demand is determined by the construction time. Hyundai Motor Company (Hyundai), on the other hand, standardizes the size of its factories to speed up the entry and response to demand. The Hyundai’s entry mode, called SPEED, is modeled as a strategy. The strategy is evaluated of excellence with capacity expansion rules formalized, key parameters identified, and mathematical programming. The SPEED strategy is suited for market followers who want to enter a midscale or mature market in terms of business excellence and more sustainable throughout the factory’s life cycle on the side of sustainability. Shorter construction times, as a result of the SPEED strategy, can help to prevent environmental damage while also standardization can increase job prospects for local workers.

Original languageEnglish
Article number12458
JournalSustainability (Switzerland)
Volume13
Issue number22
DOIs
Publication statusPublished - 2021 Nov 1

Bibliographical note

Publisher Copyright:
© 2021 by the authors. Licensee MDPI, Basel, Switzerland.

All Science Journal Classification (ASJC) codes

  • Geography, Planning and Development
  • Renewable Energy, Sustainability and the Environment
  • Environmental Science (miscellaneous)
  • Energy Engineering and Power Technology
  • Management, Monitoring, Policy and Law

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