Essays on Macro Environmental Forces that impact Motor Vehicle Industry Case Study

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The paper "Macro Environmental Forces that impact Motor Vehicle Industry" is a great example of a Marketing Case Study. The purpose of this paper is to discuss environmental factors that impact on motor vehicle industry in Australia. The paper mainly focuses on safety, carbon emission and changing consumer needs in the Australian motor vehicle industry. Safety issues related to the automotive industry are impacted by the political landscape of the country. Political factors that can impact business include current and future taxation policies; current and future political support; trade bodies, grants, initiatives and funding; and the effect of worsening relations or wars with certain countries (Hiraoka, 2001).

The year 2011 level marked the beginning of the United Nations Decade of Action for Road Safety (WHO, 2011). In this initiative, the UN highlighted the enormous advantages that can be reaped from coordinated efforts to attain enhanced road safety outcomes. In order to conform to this initiative, the Australian government has designed a new National Road Safety strategy for 2011-2020 (Department of Infrastructure and Transport, 2011). The Australian strategy has established a vision which states that no person ought to be killed or injured on Australian roads.

The strategy also sets targets for reducing the number of road crash serious injuries and fatalities by 30% by 2020 (Department of Infrastructure and Transport, 2011). Since road safety is to some extent dependent on safe vehicles, manufacturers have in recent past been involved in innovative vehicle safety technology. Most manufacturers are using four or six airbags as standards contrary to previous years when they installed only a single or two airbags (Klier & Rubenstein, 2008). This shows the emphasis being placed on vehicle safety by manufacturers.

In addition, almost all new cars have electronic stability control to enhance their safety. Other innovative safety systems being integrated into new motor vehicles include lane departure warning systems, intelligent lighting systems, active braking systems, and driver fatigue monitoring devices which are all geared toward ensuring road safety. Legal factors also have a great impact on the motor vehicle industry as it relates to safety issues and its economic prosperity (Rogers, 2009). Legal factors that impact on businesses include legislation guiding areas such as competition, employment and health, and safety; future changes in legislation; changes in European laws; regulatory bodies and trading policies (Smit, 2007).

A major legal issue in relation to safety in the motor vehicle industry in Australia is the focus on novice drivers (Department of Infrastructure and Transport, 2011). There has been a rising concern in the motor industry that P-plate vehicle restrictions in various Australian state jurisdictions if not well designed and implemented. This has led to anomalies where yo8ung drivers are being pushed away from some new vehicles which have high safety ratings and as such impacting negatively on the sale of motor vehicles in the Australian market.

Even though the industry has raised concern over the issue it is yet to be addressed amicably and probably the industry will have to wait a little longer for the issue to be addressed. This is bound to continue impacting negatively on the motor vehicle industry especially for the luxury segment which is known to be made most of young and aged affluent people.


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