Essays on Macro-Environmental Forces in Australian Industry Case Study

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The paper "Macro-Environmental Forces in Australian Industry " is a great example of a marketing case study.   Motor vehicle industry in Australia has several companies that manufacture motor vehicles as illustrated by Business information Agency Staff (2001). They include sports utility vehicles (SUVs), buses, cars, vans and medium, light commercial vehicles, heavy and special purpose highway trucks including fire trucks. These vehicles are used for commercial and private purposes. Also included in this industry is the manufacture of automotive engines. Australia is one of the countries that have facilities to design and even produce a car from a clean sheet to dealers for sale.

Australia is famous for designing and producing ‘ large’ sized vehicles that have led to a downturn in Australian markets leading to several cutbacks such as the closure of Mitsubishi Motors Australia in 2008. Currently, they are three major vehicle manufacturers in Australia that include Ford Australia, GM Holden Ltd, and Toyota. Toyota Australia is a subsidiary of Toyota Motor whose headquarter is in Japan. Previously, other major companies closed down their manufacturing operations in Australia due to varying reasons like competition and other business external environmental issues.

They include British Leyland, Chrysler Australia, Mitsubishi Motor Australia, and Nissan Australia. However, they are a number of small producers of cars in Australia such as AlphaSports, Goggomobile, and Caldwell Vale among others. This report will analyze three major external environment and its impacts on the vehicle industry. Such external environment factors include concern for safety in cars and on the roads, contributions of Motor vehicles to greenhouse gas emissions, and changes in consumer’ s needs for a motor vehicle due to demographic, urbanization and psychological trends.

The Automobile industry is facing many challenges currently in Australia (Victor 2004). Macro-Environmental Forces in Australian Industry Concern for Safety in Cars Safety in cars and on the roads is a major concern that has a major impact on the vehicle industry. There are two types of safety that should be put into consideration. They include active and passive safety. Active safety is the technology of assisting or preventing crash while passive safety is the components of the vehicle including seatbelts and physical structure of vehicle that assist in protecting those occupying the vehicle.

One of the challenges is reducing vehicle weight while maintaining or improving crash safety as well as overall performance without having an effect on the affordability. In ensuring that vehicle manufactures to meet the demands for safety, motor vehicle safety act has been set up. This is to ensure there is reduced risk of death, damage and injury to property and the environment. In Australia, safety systems featured in compact/mid-sized vehicles are driven by a high level of safety awareness in the society. This has led to the introduction and increase of new-sophisticated safety features into the vehicle industry.

The standard features of vehicle manufacturers include ABS systems. Others include ESP (Electronic Stability Programs) systems that are gaining ground. This is expected to be offered on first-class segment motors. Advanced Safety Devices like ACC was launched in Australia 2009-2010 (Geoffrey & Francis 2002). The safety systems are expected to increase greatly the cost of manufacturing vehicles. However, it is crucial to note that a high increase in manufacturing cost may kick the business out of the competition.

On the other hand, failure to incorporate safety aspects in cars may make the product unacceptable by the government inspection teams as well as society. Safety is a major factor that requires to be given first priority when designing and manufacturing vehicles of any type. The need for high safety consideration has led to the incurrence of high manufacturing costs of various motor industries. High safety expectations have led to an increase in the cost of manufacturing vehicles and assembling in Australia leading to the closure of some industries.

This is because they have been unable to sustain the high cost as well as stiff competition from other manufactures (Ricky 2010).


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