Strategic Management Australia Research 2022

Strategic Management 0
STRATEGIC MANAGEMENT
System04116
8/23/2019

Strategic Management 1
Contents
Introduction.................................................................................................................... 2
Background of the industry................................................................................................. 2
External analysis.............................................................................................................. 3
PEST analysis.............................................................................................................. 3
Political.................................................................................................................. 3
Economic................................................................................................................ 3
Social..................................................................................................................... 3
Technological........................................................................................................... 3
Porter’s five forces model............................................................................................... 4
Threat of new entrance................................................................................................ 4
Threat of substitution.................................................................................................. 4
Competitive rivalry.................................................................................................... 4
Bargaining power of suppliers....................................................................................... 5
Bargaining power of buyers.......................................................................................... 5
Reason of why car manufacturers prefer to import rather than manufacture in Australia......................5
Conclusion..................................................................................................................... 6
References..................................................................................................................... 7

Strategic Management 2
Introduction
This report discusses about the worldwide motor vehicle industry or automotive industry. This
report includes the history of world automotive industry. These industries are largely impacted
by various environmental factors, which is to be discussed in this report by doing the
environmental analysis using PESTEL and Porter’s five forces model. Furthermore the final
discussion is to be made in this report on why motor vehicle manufacturers import rather
manufacture in Australia.
Background of the industry
Automotive industry refers to all those companies or organizations that are involved in the
manufacture of motor vehicle consists most components that are including spare parts of
vehicles, engines, and bodies but exclusive of fuel, tires, and batteries. Principal products of
automotive industry are passenger automotive and light trucks, which include motors, bikes,
sport bikes, cars, trucks, and other utility motor vehicles. The commercial vehicles include
delivery trucks and big trucks of transport however is essential to automotive industry are less
important.
The history of automotive industry however brief as likened with that of several different
industries has special interest due to its effect on the history of 20th century. Though in the late
19th century, the automotive originated in Europe, US wholly subject the world industry for first
half of 20th century by introduction of techniques of large production. In the second half of
century the condition changed abruptly as the western European nations and the Japan turn out to
be large producer and the exporters (Ülengin, Et al, 2014).