Solutions to Branding in Australia's Automotive Industry (Essay Sample)

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Solutions to Branding in Australia's Automotive Industry
Automotive Industry PEST Analysis (For Lack of Government support for exporters’ issue)
• Political FactorsThe government of Australia should come up with policies that encourage export funding and assistance. For instance, the government should take advantage of several organizations willing to support export (Lawrence 2009, 60). Besides, the government ought to take advantage of assistance and grants finder. This is a free service that permits establishments to acquire grants. The government needs to expand such services and make them more accessible to the exporters.•Economic FactorsAustralia’s automotive industry has been faced with a decrease of car prices over the recent years. For instance, the car prices decreased by 2.8 percent last year. Further, the economic policies in Australia do not favor expansion of Australia’s automotive industry. This makes other countries such as china which are not faced by such problems to be economically better than Australia. The government should formulate better economic policies, including provision of subsidies to exporters. Increases in government subsidies to exporters will increases sales volume. Moreover, the exporters in automotive industry will have a competitive advantage (Lawrence 2009, 40). Subsidies lessen the production cost and increase the profit margin. This implies that subsidies will enable exporters to sell their products at a low price hence competitive advantage. Additionally, the automotive transformation Scheme should be tailored towards responding to the needs of exporters including increasing sales volume, gaining competitive advantage and reducing production costs. In addition, the government should ensure timely implementation of government subsidy programs in the international competition. This will ensure a timely exit of global brands (Lakhwinder 2007, 88).
•Socio-Cultural Factors Australia is a culturally diversified country. The Australians have the right to express their beliefs and culture (Society of Automotive Engineers – Australasia 2009, 97). Additionally, every individual in Australia is expected to maintain and uphold the shared principles and values to support Australia’s lifestyle. This explains why the Chinese consumer is more likely to buy products made in foreign countries than the Australia consumers. Additionally, the government should formulate and implement social policies that aim at ensuring a growing demand for Australia Automotive products around the world (Lakhwinder 2007, 21). These policies will be tailored toward making Australia the ideal location for exports products abroad. Besides, the policies should ensure that the Australia’s automotive products are increasingly relevant to the commercial automotive industry. The automotive industry products should be culturally sensitive to the differences in social culture in the global market (Australia 2012, 76).•TechnologicalAustralia‘s training level and expertise are better than most of the world countries. The education system in Australia equips students with the necessary skills and expertise (Society of Automotive Engineers – Australasia 2009, 97). The Australia’s education system should be expanded and improved to meet global standards. Australia can utilize its technological advancement to export more high tech products to other countries. This in combination with advertisement can increase the market share of Australia’s automotive industry. Since Australia is located away from major international automotive markets, advertising efforts can be imperative to the automotive industry in Australia (Lawrence 2009, 120). The government should sensitize manufacturers on the need to invest more in marketing of their products. Advertising increases market share of the establishments in the global markets. More consumers will be aware of the existence of Australia’s high tech products (AUSTRALIA 2012, 80). Advertising may increase sales volume. Government advertisement can be effective in attracting more consumers since it can be trusted by consumers 2. Global Risk Management (For Lack of Automotive Industry Management (Leadership) issue)
Risk management is imperative to the success of Australia’s automotive industry. Risk management ensures persistent automotive industry advancement. The automotive industry leadership in Australia should have the capacity to effectively analyze risk. Further, the Australia’s executive management should adopt risk management strategies aimed at reducing costs and increasing competitive advantages of the products in the global market. This implies that the Australia’s management executive should be concerned with the success of global brand. This will make it easy for foreign manufacturers to build strong brands in Australia (Lakhwinder 2007, 111). The risk strategies will ensure that the management executives in the Australia automotive industry identify the winning path of the industry and productively lead the industry along the path to the desired end. Further, the industry leadership calls for reshaping the leadership profile and the whole industry (Lawrence 2009, 70). The automotive leaders must be capable of managing cash and making production cost more adjustable in order to respond to fresh opportunities (Australia 2012, 70). Further, they should incorporate outsourcing, new production methods, technology innovation and partnerships (Society of Automotive Engineers – Australasia 2009, 98). The executives need to have partner leadership experience, a global perspective, outstanding people management expertise, strong operational competences and experience, financial acumen and strategic orientation. Furthermore, the automotive industry management executives should depend on beneficial strategic alliances and partnerships (Lawrence 2009, 112). This will facilitate cost management and development of new technologies. In addition, the automotive industry management must be highly conversant about all aspects of the industry and its multifaceted networks (Australia 2012, 210). Further, the Australia automotive industry management needs to comprehend the forces that govern changes in the industry. The strategies will ensure the automotive products in Australia are sold at competitive prices and incorporate new model to cheer up the competition. (Lakhwinder 2007, 31).
3. Global Supply Chain Management (For Geographical location issues)
Since Australia is located away from major international automotive markets, government should formulate principles and guideline to minimize the effect of longevity and inefficient supply management (Lakhwinder 2007, 102). The effect of insufficient supply management can be minimized by innovation. Innovation in the automotive industry entails improving logistics, designs, manufacturing processes and business processes to achieve optimal performance. Innovation minimizes the barriers associated with the geographical location of Australia. For instance, the manufacturers in the automotive industry can integrate inventory policies that fulfill the needs of consumers. Further, the supply management can be classified into three categories, including supply logistics and operations, order fulfillment and cross-functional groups. Classification ensures efficient operation of supply chain management (Lawrence 2009, 56). Classification makes it easy for the manufacturers in the automotive industry to communicate with the clients as well as efficient planning and delivery. Adoption of fulfillment functionality provides simultaneous real time connectivity with numerous tiers of critical supply chain associate...