Australian Car Manufacturing Industry Essay

3878 words - 16 pages

1. Introduction1.1 PurposeThe purpose of this report is to analyze the car manufacturing industry in Australia and discuss the competitors using Porter's and Kotler's theories. Particularly, this report will discuss Ford Australia, and evaluate its strategy and discuss issues that Ford has already had and Ford could use to gain a competitive advantage in the future which will be related to Kanter's "New Wisdom" and Day and Wensley Framework.1.2 BackgroundThe car manufacturing industry in Australia has grown well in the past few years, with trend in Sport Utility Vehicle (SUV) model. Thus, some car manufacturers start to focus on SUV such as Ford Australia has released Territory (SUV) in June 2004 which has gained success in the market and some issues will be discussed more in this report.1.3 ScopeBecause the car manufacturing industry in Australia can be seen in many perspectives, this report will only discuss the industry using Porter's Five Forces Model and the competitors using Kotler's market positioning classification, and also use Ford Australia to analyze its strategy and issues to compete in this industry.1.4 MethodologyTypes of data that were collected for this report include some textbooks/ hard copy, journal articles and some information from internet.1.5 AssumptionThis report assumed that all data that have been collected were true at the time of this report being written or at the time when the sources of data being written.1.6 PlanThis report plans to discuss the car manufacturing industry generally and will be continued with discussion about Ford's strategies to compete, and also using value chain analysis to illustrate how they have implemented their chosen strategy and identify some issues that Ford have used and could use to gain a competitive advantage in the future.2. Overview of the Australian Car IndustryThe Australian passenger motor vehicle (PMV) industry consists of four car biggest manufacturers (Toyota, Holden, Ford, and Nissan [see table below]) and more than 200 component, tooling, design and engineering firms. The industry is largely based in Victoria and South Australia, with a small share of activity in New South Wales (Australian Government Department of Industry, Tourism and Resources, 2004; Lloyd, 2004; Wong, 2004b).In 2004, a total of 955,229 motor vehicles were sold on the Australian market. This was a new record, surpassing the previous record of 909,811 in 2003 and 824,309 set in 2002 (Australian Government Department of Industry, Tourism and Resources, 2004; Roberts, 2005). The following charts are to illustrate the total market shares by car manufacturers and the growth of car sales in Australia.As it can be seen from the charts above, Toyota holds the biggest share market in the car industry, followed by Holden, Ford, Nissan, etc., and the sales of motor vehicle in Australia has increased since 2001 and the Federal Chamber of Automotive Industries predicted another year of record sales of 980,000 in 2005....

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