Essays on The Motor Vehicle Industry in Australia Case Study

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The paper "The Motor Vehicle Industry in Australia" is a good example of a marketing case study.   Globalization today is gaining prominence as borders are disappearing and countries are entering into treaties with each other which favour free trade. This has made companies expand their reach. Australia has witnessed growth over all the industries which have made it possible for Australia to be one of the developed nations. The contribution of the motor vehicle to the economy of Australia is immense and has ensured that the economy flourishes and grows.

The report thereby looks into the motor vehicle industry of Australia. Purpose of the report To identify the macro-environmental factors which have an effect on Australia’ s motor vehicle industry To identify the motor vehicle industry preparation to combat against safety, greenhouse gas emission and changes in consumer needs Motor Vehicle Industry Australia has millions of vehicles in the country which are registered. The competition in this sector is very tough. It has nearly all the major vehicles producer in the country. This has given rise to a price war and customers are getting lots of option. Some of the producers which are there are Ford Motors, General Motors, Chrysler, BMW, Honda and Hyundai.

This puts a lot of pressure on different companies. This takes the Australian market towards perfect competition. It also satisfies the assumption of perfect competition as companies here earn only nominal profits (Automotive Industry, 2005). The value chain of Australia’ s automobile industry looks as follows Figure 1: Motor Vehicle Value Chain The growth of the automobile industry in Australia helps to identify some macro-environmental factors which companies need to look into and devise strategies to deal with those. Safety Concerns in Cars & Roads The increase in the rate of road accidents and increasing fatalities is becoming a concern for the Australian economy.

It has been identified that most of the accidents that happen in a car are of people who are in the front seat compared to the back seats highlighting the risk associated with driving cars (Cars, 2009). This has resulted in an increase in compensation paid to the injured and the deceased in road accidents (Compensation, 2011). The increase in the fatalities due to road accidents in Australia is as below   1994 1995 1996 1997 1998 1999 2000 2001 NSW 552 563 538 525 491 506 543 494 Vic. 345 371 382 346 348 345 373 404 Qld 364 408 338 322 257 273 275 296 SA 143 163 162 123 152 132 151 137 WA 195 194 220 184 199 188 185 150 Tas. 52 53 53 29 47 47 39 52 NT 36 56 58 56 59 44 48 43 ACT 15 14 17 17 20 17 16 15 Aust. 1,702 1,822 1,768 1,602 1,573 1,552 1,631 1,591 Figure 2: Accidents Involving fatalities The above chart shows the accidents which happen in Australia every year which is an environmental factor affecting the demand for motor vehicles (Accidents, 2011).

The magnitude of the problem magnifies when we look at the number of people dying in accidents every year   1994 1995 1996 1997 1998 1999 2000 2001 NSW 646 620 581 576 556 577 603 524 Vic. 377 418 417 377 390 383 407 444 Qld 418 456 385 361 279 314 317 324 SA 159 181 181 148 168 151 166 153 WA 211 209 247 197 223 217 213 164 Tas. 59 57 64 32 48 53 46 61 NT 41 61 72 60 69 49 51 50 ACT 17 15 23 17 22 19 18 16 Aust. 1,928 2,017 1,970 1,768 1,755 1,763 1,821 1,736 Figure 3: Persons Killed every year in Australia The increase in death rate is a concern which is making the automobile sector look into ways to improve the way the car is designed. This has made manufacturers of the car ensure that they design their car in such a way that increases safety.

The manufacturers have ensured that the car has safety belts, safety seats and mechanism which help to reduce casualties in case of accidents (Safety Concern, 2011). The increase in accidents has brought about major changes in the framework. The economy has issued safety issues for people who are disabled so that the rise in people due to disability increasing from accidents reduces (Research Note, 1998).

References

Automotive Industry. (2005). Australia’s Automotive Industry. Retrieved on March 30, 2011 from http://www.abs.gov.au/ausstats/abs@.nsf/Previousproducts/1301.0Feature%20Article252005?opendocument&tabname=Summary&prodno=1301.0&issue=2005&num=&view

Accidents. (2011). Accidents Involving Fatalities. Retrieved on March 30, 2011 from http://www.abs.gov.au/Ausstats/abs@.nsf/Lookup/3875170E8478D171CA256CAE0016268F

Bass, J. (2011). Lowest ever CO2 emission. Retrieved on March 30, 2011 from http://www.carpoint.com.au/news/2011/lowest-ever-co2-emissions-24072

Cars. (2009). Safety a concern as young people take to road. Retrieved on March 30, 2011 from http://www.earthtimes.org/articles/news/270504,safety-a-concern-as-young-people-take-to-the-road.html

Compensation. (2011). Road Accident Compensation. Retrieved on March 30, 2011 from http://www.roadinjurycompensation.com/

CRPS. (2010). Carbon Reduction Pollution Scheme. Government of Australia Undertaking. Retrieved on March 29, 2011 from http://sites.thomsonreuters.com.au/carbon/

DAFF. (2010). Carbon Reduction Pollution Scheme. Department of Agriculture, Fisheries and Forestry. Retrieved on March 29, 2011 from http://www.daff.gov.au/climatechange/carbon_pollution_reduction_scheme

Greenhouse. (2011). Automotive Greenhouse Gas Emission Regulations. Retrieved on March 30, 2011 from http://www.worldsteel.org/?action=storypages&id=272

Joel, M. (2000). Australia. Retrieved on March 30, 2011 from http://ww2.unhabitat.org/habrdd/conditions/Oceania/australia.htm

Martin, T. (2010). Australia in on the right road to reduce CO2, but are the targets enough? Retrieved on March 30, 2011 from http http://www.goauto.com.au/mellor/mellor.nsf/story2/7BFED44A028545B9CA2576D90006F3C1

Research Note. (1998). Safety Issues for Vehicle Adapted for Use by Person with Disabilities. National Highway Traffic Safety Administration, Retrieved on March 30, 2011 from http://www-nrd.nhtsa.dot.gov/pubs/98.030.pdf

Safety Concern. (2011). What Safety Concerns are Important while taking Children on road trips? Retrieved on March 30, 2011 from http://www.essortment.com/safety-concerns-important-taking-children-road-trips-55850.html

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