The paper "Internet Marketing and Automotive Industry" is a wonderful example of a Marketing Case Study. The automotive industry in many parts of the world remains dynamic with numerous changes to note. According to PwC Australia (2012), the automotive industry across the globe faces many changes such as credit markets in the capital intensive industry are being tightened and governments are increasing their involvement in the sector. In Australia, the automotive industry shows signs of growth but business analysts still regard the auto industry business environment to be shaky (Bhatt, 2012).
These challenges are further compounded by the fact that the auto industry in the country has not escaped from key challenges such as costs of raw materials that remain volatile, complex and tightening regulations and increased level of competition (PwC Australia, 2012). The dynamic business environment being witnessed today has forced major players in Australia’ s auto industry such as Ford, Toyota, and Holden to develop new marketing strategies and opportunities that can enhance their market competitiveness (Asia-Pacific Economic Cooperation-Australia, 2006). Holden, just like other players, has identified the need for adoption and utilization of electronic marketing strategies such as internet marketing (Holden Australia, 2011).
This is a new area the company aims to derive and establish a competitive position as compared to its competitors in the market. Therefore, subsequent sections in this study deal with conducting market situation analysis for Holden Company with regard to internet marketing. Industry overview Three major automotive companies operate in the Australian automotive market: GM Holden, Ford Motor Company of Australia and Toyota Motor Corporation Australia (Commonwealth of Australia, 2008). The three companies are fully owned subsidiaries of big overseas producers. Graph showing sales of automotive in Australia Figure 1: Sale of automotive in Australia, 1988-2007 Source: Commonwealth of Australia, 2008 The diffusion and adoption of technology in Australia continue to grow at a faster rate (Spesti, 2011).
From the use of social media like Facebook, yahoo, google, and many more social sites, to the use of mobile phones and internet, Australia’ s population has been found to be one of the fastest-growing in the world in terms of technology adoption and usage (Spesti, 2011). For example, by the year 2010, online shoppers in the country spent between $10 and 12 billion to buy products and services over the internet (The Sydney Morning Herald, 2011, January 8).
This constituted about 5 percent of total retail sales that was estimated to be about $250 billion (The Sydney Morning Herald, 2011, January 8). At the same time, predictions made in 2010, indicated that online shopping would realize the growth of about $18 billion by the year 2014 in the country (Spesti, 2011). On average, it has been established that online shopping in the country is growing annually at about 12%. Holden Australia is a subsidiary of GM Holden Limited, which was established in 1856 (Holden Australia, 2011).
At the moment, the company is part of the seven fully-integrated companies by General Motors in the world that carry out full operations such as designs, build and selling of vehicles both in Australia and outside markets. The Company has its headquarters in Port Melbourne and has established about 270 dealerships (Holden Australia, 2011). The company has a manufacturing plant located in Elizabeth, South Australia, and is known as Holden’ s Vehicle Operations (HVO), which at the moment produces a total of 51 models across six body styles and variants (Holden Australia, 2011).
The company produces both large and small vehicles: Commodore and Cruze in the Australian market.
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