Executive Summary:
Business 's are the most crucial factor to the Australian economy. Without them, the economy would not be. Their core purpose is to meet the ever-growing demands of consumers, both nationally and internationally, through the production of goods and services. The business this report will be focusing on, which not only operates in Australia but in various countries around the world, most notably; New Zealand, however, also with a slowly expanding market-share in both Asia and the Middle East is the Holden/General Motors group, a well established Australian car manufacturing company, in which holds one of the top market shares for the car industry in Australia.
This business report will
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- There is very little focus on innovations, which is making it more difficult for Holden to keep ahead of major competition thus, maintaining the lead in sales.
- Vertical integration regarding the products is quite high.
- Lack of implementing the strategy to provide positive influence in the firm regarding the structure.
- Bureaucratic Leadership has not proved to be an effective method for Holden.
- Holden is facing a steadily decreasing market share.
- Product design is not according to the preference of the customers that makes it hard for consumer acceptance.
- Profitability is decreasing (in terms of all aspects of operational profits).
- ineffective leadership methods have brought down the workers’ morale in many cases.
OPPORTUNITIES:
· new research facilities will help maintain a focus on research into new and innovative products and marketing/advertising schemes
· New car models and designs are being introduced each year. If Holden can focus on fulfilling; customer preferences, wants and needs with a variety of variable options.
· The Chevrolet (also owned by General Motors) is a product which will bring a lot of opportunities in terms of sales in the future which can help the profitability of Holden/General Motors
· There are expected to be new emerging markets in Asia opening up with the financial boom
Ford's major move in recent years is that of the technology that is in their cars. With Ford's venture with Microsoft to introduce a "smart car" that has an understanding of what types of music the driver prefers to read text messages aloud and voice commands; Ford has definitely taken the lead in terms of technology inside the car.
Holden was founded in 1856 in Australia, which only few automobile manufacturing enterprises have. “Pure Aussie product” is the biggest asset of the corporation.
The automotive industry globally involves the processes of manufacturing as well as sales of cars and other automobiles. The business of this industry is also inclusive of retailing activities like services; sale of spare parts, gas-station retails etc. by the year 2015, and the growth rate of the industry is expected to have a rise of 5.5% (Market Line, 2012). Moreover, as per International Organization of Motor Vehicle Manufacturers, this industry is the leading driver in terms of global economic progress and the largest employer. The changing trends and rising demand for technically advanced cars are giving out more opportunities. This essay is going to be a presentation on the analysis of the Volkswagen positioning strategy with respect to the Porters models of competitive strategies. This essay would be vital, as this analysis would help in revealing the company’s competitive and strategic position in the industry.
With the increase of the high local labor cost, Holden is suffering from the high production costs. The market share for its main competitor (TOYOTA) maintains a stable increasing. Though Australia government supported Holden every year in order to protect Australian’s own car maker, Holden itself still can not pass that difficult (ABC Premium News,2013).
The General Motors answered that the Australian Dollar, high cost of production, limited and small domestic market and possibly the extremely challenging and fragmented market in the world are the
General Motors, the “mother company” has faced many troubles in the past, and surfaced. A research by the National Research Council in the United States has revealed in 1992 that there had many impacts and future impacts in the automotive industry, indeed; it would affect the jobs and the internal economy. However, General Motors understood the threat potential that this and established strategic plans to revert the trend. Furthermore, whether General Motor Company was able to change the trend, and it saw the internal and external factors, prepared a strategic plan, Holden being the first brand in Australia, with at least just the 10 % of the population compared with the USA, the way to get a plan looks easier. In addition, it is easier to see a trend in countries with low population and good policymakers. In 2008 General Motors faced again the limit to bankruptcy. A fierce plan to develop and a new business association with FIAT made that GM avoid the dissolution. Even do all Europe have had a similar crisis( Boudette & Choudhury,
Chevrolet’s known as the “Heartbeat of America” for a reason. Before any masterpiece is perfected, it goes through ups and downs. Chevrolet is known for their sporty cars, sports utility vehicles, and pick-up trucks. A strength that is evident in the company’s product mix is that the company introduces a new car every year. Because of this, Chevrolet owes their high sales to their loyal customers. This alone enables the company to excel above their competitors. Chevrolet has models of cars that compete with Ford, Honda, and Toyotas. Chevy introduced, the Cruz, their version of the Corolla and Civic. The Cruz, their best-selling car, is a small car that provided customers with great transportation. “Chevrolet's confidence in the Cruze rests
Furthermore, Chevrolet is known for its innovative product modification and it must continue to adapt and meet the customer needs through differentiation, customization, and diversity in order to continue to excel for another century (Ferrell & Hartline,
By investing more in our technology capabilities, increasing customer base needs for interior, styling, safety, and quality permits us to introduce a new Crossover vehicle within period 5.
Holden has been pioneer in car industry and in the following years will be the same and focused on coming out on top in option fuel propulsion.They need to be driving merchant inside of the
I will be comparing both companies General Motors Company and Ford Motor Company for the past three years. We will be able to see all the trends these two automotive manufacturers have and which one may be better to invest in by looking at the last few year’s ratios and percentages. This will give us a better understanding and the knowledge of who maybe the industry leader and who is the follower. These are both major corporations that strive off customer loyalty and both competing on a global scale to make their mark in the one of the top automotive manufacturers in the world. This analysis will give us an understanding of what lies ahead in the future for these two manufacturers.
This is a real life problem and as you research the vehicle you may discover that success is not a certainty. Apply marketing theory for grades!
A mutual fund manager is a person who actively buys or sells and sometimes both funds. They are experienced in implementing a funds strategy used for investing and manages its trading activities as well as the portfolio. Choosing whether or not to invest in Ford Motor Company will take the use of a SWOT analysis and learning about the stakeholders of the company.
With the ignorance of the market nichers such as Peugeot and Renault, Opel’s target competitor was Volkswagen. VW is prospering with each passing day and becomes a major player who can strive for the first with Toyota in the world market(Moon 2013). However, Opel along with the hole GM is not in a dominant position now. Although Holden is still a big player in the Australian market but can it survive with out subsidies from government? Moreover, Australian auto market is a intensive competitive market which has 66 brands of cars but only 23 millions of population(Dowling 2013). ‘The segments we need to be selling our volume into are so incredibly competitive now, and that’s what changed in a way that’s invalidated the entire business case. ’ Said by Opel Australia spokeswoman Michelle Lang. Regarding other European brands, Renault, with a 60-year history in Australia, only sales 3500 cars in 2011(Dowling 2013). Actually, in the past 10 years, Renault’s best annually sales number is 4656 in 2002 which only reached less than a quarter of its initial target of 20,000 sales(Dowling 2013). Peugeot, established in 1949, only one year younger than Holden, has averaged fewer than 7000 sales during 2003 to 2012(Dowling 2013). Acknowledged the data above, Opel’s 989 sales in the first half of 2013 which was 114 less than Porsche is , to some extend, reasonably(O’Brien 2013).
The main strength of the Geely Automotive Holdings, Ltd. is their focused research and development initiatives. They invest roughly “10% of their annual sales revenue (which is significant when compared to Toyota’s 5% investment)” in research and development and focus much of their company’s efforts on their Geely Automobile Research School and the Geely Engine Research School (Dess, Lumpkin, and Eisner, 2010). These schools allow them to make improvements pertaining to gas efficiency (a huge competitive advantage in the U.S. and European markets), the meeting of EPA standards, design innovation, as well as feature innovations. These are all important things to consider for any company in the automotive