Business environment has changed all across the globe and so is the case in Australia. Such a change in the environment has affected the business operations. In the last few decades many car manufacturing companies have come out of Australia. There were many reasons for such downfall in the automobile industry (Lee, 2011). This has created a negative image in the minds of investors who wants to invest in Australia. It is crucial that companies in the manufacturing industry do a market analysis so as to understand the reasons that are stopping their growth as a manufacturer in Australia. This is also a challenge for the Australian government as this industry is one of the biggest contributors to the GDP of the nation. This is the trend when the Australian government is providing them subsidies from decades. This report explains about the situation of the industry as well as the competition present in it. Apart from this it also describes about the factors that are creating such situation for the car manufacturers.
Holden, which was previously known as General Motors-Holden is one of the big car manufacturers in Australia. It has shut down its manufacturing centre in Australia after so many years of government aid. The international competition has played the major role in it. Previously other big companies like Nissan have come out of Australia two decades back. In 2016 ford did the same thing. This shows that from the past few decades the performance of automobile manufacturers in Australia has not been good. Manufacturers are facing many types of challenges from the international competitors as well as there are many internal factors that are making the issue even bigger (Maxcy and Silberston, 2017). New investors and existing companies had to face different kinds of situations which are confronting their business. Strategic tools can be used by the companies so as to understand the factors that making the situation worse. It is also essential for understanding the factors that are making the situation worse.
It was not the same all the time Australian manufacturing of car rose to half a million in 1970. Australia was best known for designing and producing vehicles that larger in size. By 2015, many companies closed their manufacturing units in Australia.
Five force models is a very effective tool for understanding the condition of any industry. It is also crucial that companies evaluate each and every factor that is restricting the growth of the manufacturing sector in the country (D’Netto, et. al. 2014). Five force models for Australian car manufacturing industry are as follows:
Holden has so many competitors in the market and all of them have the capacity to take the market share of others (Car guides, 2018). Some of the big competitors of Holden are Toyota, BMW, Mercedes Benz, Audi, Mazda, Hyundai etc. It is crucial that any company does its market analysis to understand its competitors. Number of car manufacturers within Australia is lower than other regions like Asia and Europe.
The car manufacturing industry in Australia is facing many kinds of challenges. There are many factors that are affecting the business of the car manufacturers. In order to understand the situation of the industry, it is crucial that company analyses the factors that are affecting their business (Teo, Le Clerc and Galang, 2011). Situational analysis is as follows:
Conclusion:
From the above based report, it can be said that Holden and many other big car manufacturers are coming out of Australia. There are many factors responsible for it and it is crucial for the car manufacturers to reasons due to which this situation has arisen. Threat of new entrant is on the lower side but the rivalry in the industry is on the higher side. With the changing political, social, technological, economic factors in both Australia and other parts of the world, business dynamics have also changed. With other lower cost markets getting developed in other parts of the world, companies are moving out of Australia which burdens them with higher operational cost. Asia is having skilled labourers at lower cost which attracts companies to come out of Australia.
Bainbridge, A. (2013) Holden must adapt to survive in diverse Australian car market, analysts say. [Online]. Available at: https://www.abc.net.au/news/2013-12-11/consumers-spoilt-for-choice-in-australian-car-market/5148410. [Accessed on 21st August 2018].
Beaumont, N.B., Sohal, A.S. and Terziovski, M., (1997) Comparing quality management practices in the Australian service and manufacturing industries. International Journal of Quality & Reliability Management, 14(8), pp.814-833.
Car guides, (2018) Car Makes and Car Brands. [Online]. Available at: https://www.carsguide.com.au/mlp/makes. [Accessed on 21st August 2018].
D’Netto, B., Shen, J., Chelliah, J. and Monga, M., (2014) Human resource diversity management practices in the Australian manufacturing sector. The International Journal of Human Resource Management, 25(9), pp.1243-1266.
Ladd, M. (2017) Holden closure: Australia’s history of car manufacturing comes to an end. [Online]. Available at: https://www.abc.net.au/news/2017-10-08/holden-closure-australia-history-car-manufacturing/9015562. [Accessed on 21st August 2018].
Lee, K.H., (2011) Integrating carbon footprint into supply chain management: the case of Hyundai Motor Company (HMC) in the automobile industry. Journal of cleaner production, 19(11), pp.1216-1223.
Maxcy, G. and Silberston, A., (2017) The motor industry. Routledge.
Redshaw, S., (2017) In the company of cars: Driving as a social and cultural practice. CRC Press.
Samson, D. and Gloet, M., (2014) Innovation capability in Australian manufacturing organisations: an exploratory study. International Journal of Production Research, 52(21), pp.6448-6466.
Samson, D. and Gloet, M., (2014) Innovation capability in Australian manufacturing organisations: an exploratory study. International Journal of Production Research, 52(21), pp.6448-6466.
Teo, S.T., Le Clerc, M. and Galang, M.C., (2011) Human capital enhancing HRM systems and frontline employees in Australian manufacturing SMEs. The International Journal of Human Resource Management, 22(12), pp.2522-2538.
Wright, C.F., Clibborn, S. and Lansbury, R.D., (2011) Becoming an endangered species? The future viability of Australian automotive manufacturing. International Journal of Automotive Technology and Management, 11(2), pp.172-188.
We provide professional writing services to help you score straight A’s by submitting custom written assignments that mirror your guidelines.
Get result-oriented writing and never worry about grades anymore. We follow the highest quality standards to make sure that you get perfect assignments.
Our writers have experience in dealing with papers of every educational level. You can surely rely on the expertise of our qualified professionals.
Your deadline is our threshold for success and we take it very seriously. We make sure you receive your papers before your predefined time.
Someone from our customer support team is always here to respond to your questions. So, hit us up if you have got any ambiguity or concern.
Sit back and relax while we help you out with writing your papers. We have an ultimate policy for keeping your personal and order-related details a secret.
We assure you that your document will be thoroughly checked for plagiarism and grammatical errors as we use highly authentic and licit sources.
Still reluctant about placing an order? Our 100% Moneyback Guarantee backs you up on rare occasions where you aren’t satisfied with the writing.
You don’t have to wait for an update for hours; you can track the progress of your order any time you want. We share the status after each step.
Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.
Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.
From brainstorming your paper's outline to perfecting its grammar, we perform every step carefully to make your paper worthy of A grade.
Hire your preferred writer anytime. Simply specify if you want your preferred expert to write your paper and we’ll make that happen.
Get an elaborate and authentic grammar check report with your work to have the grammar goodness sealed in your document.
You can purchase this feature if you want our writers to sum up your paper in the form of a concise and well-articulated summary.
You don’t have to worry about plagiarism anymore. Get a plagiarism report to certify the uniqueness of your work.
Join us for the best experience while seeking writing assistance in your college life. A good grade is all you need to boost up your academic excellence and we are all about it.
We create perfect papers according to the guidelines.
We seamlessly edit out errors from your papers.
We thoroughly read your final draft to identify errors.
Work with ultimate peace of mind because we ensure that your academic work is our responsibility and your grades are a top concern for us!
Dedication. Quality. Commitment. Punctuality
Here is what we have achieved so far. These numbers are evidence that we go the extra mile to make your college journey successful.
We have the most intuitive and minimalistic process so that you can easily place an order. Just follow a few steps to unlock success.
We understand your guidelines first before delivering any writing service. You can discuss your writing needs and we will have them evaluated by our dedicated team.
We write your papers in a standardized way. We complete your work in such a way that it turns out to be a perfect description of your guidelines.
We promise you excellent grades and academic excellence that you always longed for. Our writers stay in touch with you via email.