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Australian Car Manufacturing Industry Essay

1427 words - 6 pages

STRATEGIC MANAGEMENT

AUSTRALIAN CAR MANUFACTURING INDUSTRY

4/10/2014

TRANSTUTORS


AUSTRALIAN CAR MANUFACTURING INDUSTRY
The Australian car manufacturing segment is one of the prevalent contributors to the market sector of the Australian financial system. Comparative to the additional sectors that composite the Australian market segment, in 2012-13 the manufacturing sector provided the fifth prevalent share of value accumulated. The Australian car manufacturing segment had the second prevalent allocation of hours operated and the third leading employer. The Australian car manufacturing segment had the fourth leading share of venture, and the fifth prime allocation of net capital reserve (Barnes, P., Soames, L., Li, C. and Munoz, M. 2013).
Threat of New Entrants
Overseas automobile producer would have to countenance numerous impenetrabilities if they were to infiltrate Australia automobile manufacturing business. The intricacies can moreover be distinct as elevated obstacle to entrance. One of the intricacies that overseas automobile producer would have to countenance at some stage in the infiltration would be the elevated cost requisite in stipulations of empowering in manufacturing amenities and in addition emergent a well-mannered intensity of distribution system. An additional complicatedness that overseas automobile producer would have to countenance would be the accessible automobile manufacturing contenders in Australia. Existing automobile manufacturing contenders in Australia are colossal such as Toyota, Holden and Ford. Existing automobile manufacturer in Australia would facade intimidation to novel entrants since they by now achieve a superior hand in stipulations of economies of scale and possibility (Baker, M. and Hyvonen, M. 2011).
Rivalry among Competitors
In Australia, there are no automobile industries with considerable market allocation or that can cartel the automobile industry marketplace. Nevertheless, the antagonism intensity in Australia is still at a very forceful echelon due to the stumpy deliberation proportion of market shares in the midst of contenders. Apart from the 3 prevalent automobile manufacturers, there are moreover company like Honda, Nissan, Mazda and others who are in the aggressive prospect. Toyota, Holden or Ford can classified as key contenders because of their well-built brand icon and furthermore their steadiness in terms of amenities or allotment (Barnes, P., Soames, L., Li, C. and Munoz, M. 2013). Rivalry in the midst of contenders for automobile industry in Australia is elevated.
Competition from Substitutes
Australia’s automobile manufacturing industry is opposition/intimidation from replacements. The foremost replacement of automobile or personal vehicle in Australia is busses and trains. The proportion of whole public transport road and rail network projected in Australia would go down according to the Australia transportation Infrastructure details 2010, which will plummet from 48.17%...

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