Discuss about the Life Cycle Environmental and Economic.
The Holden Company is a historical figure in the Australian automotive industry and has been doing business for the past one and a half decades. The company launched its first car model called the 48-215 in the year 1948, which was an immediate success in the automotive market of Australia. The company became an integral part of the people within the country and the name is often associated with its own status and symbolizes a spirit of strength along with adaptability (Thomas and Holden 2016).
The company presently employs around 6300 people from Australia and has produced more than seven million vehicles. The company is a part of the General Motors (GM), which is one of the largest automobile industries in the world since 1931. The company caters to the domestic and international clients and is an exporter of best quality engines across the globe and provides expertise in the markets as well (Holden and Risebro 2015).
The operational activities of the company are located in Fishermans Bend, which deals with the manufacturing of the engine parts along with administration; the Dandenong area provides expertise in the operation of the spare parts and the Lang Lang area in Victoria along with Elizabeth in South Australia are the places where the manufacturing plants of the company are located (Ewing, Wagstaff and Powell 2013).
The retail sales of Holden Australia according to the 2007 market saw an increase of 14 percent of the market share, as the company was able to sell 146,680 number of car units. The brand called Commodore alone was sold in 57,300 numbers of units and continued to be the most popular car of the Australian people for twelve years in a row. The plant that is located in Elizabeth produced a total of 107,795 numbers of units out of which the exports for the company reached to 36,354 units. Apart from this, the engine operations that are located in Victoria produced a total of 269,421 number of four and six- cylinder engines, which was exported to different places across the globe (Holden and Risebro 2015).
The company was established in 1856 and shows the legacy of its brand in the Australian market. Most of the people can easily associate the brand with themselves, as it has served the community for a long period. The company provides employment opportunities to more than 6000 people, which has helped them in leading a better life and helped in increasing the economy of the country. The company is known to make minivans and Sports Utility Vehicles (SUVs), which are preferred in the Australian and the entire market as well. The company also has a strong image in the Australian and the New Zealand market, which has helped them in increasing their sales and generating better revenues. The merge with General Motors has helped the company in gaining international recognition, as the company is known all around the world (Sharma and Strezov 2017).
The company mainly focuses its sales on a regional basis and tries to be competitive in its home and New Zealand market. The presence in the global market and the shares in the international market for the company are negligible when compared to other manufacturers in the automobile industry. The weak presence of the company in the international has made it difficult for the company to increase their sales in those particular markets (Bunyan 2015).
The model Chevrolet/ Holden Volt is one of the products of the company that will help the company in increasing its volume of sales. The company needs to capitalize this opportunity so that they can capture the international market as well. The company needs to tap the resources that are present in the Asian and the African continents. This will help the company in increasing their volume of sales. The company can also develop their cars in a better manner with the help of the parent company that is General Motors, as they can provide better insights about new models of designs to the company (Morris 2013).
The shift from the fuel cars to the electric or hybrid cars, which has increased has caused a problem to the company, as they majorly deal with cars that dawns a trendy look to the customers. The Korean and the Japanese car manufacturers have established their companies in a better manner, which has caused a problem for Holden in entering in to new markets that may provide opportunities for the company. The goodwill of the brand does not have a better reach in all the geographical locations on the earth (Mutze 2017).
The government of China since the inception of 2013 is creating problems with the sale of the foreign products, as it is encouraging the local people in the intake of the local products. Before 2013, it was seen that the agencies that are based locally helped in encouraging the people in purchasing foreign goods. The rules and regulations of the government have had a huge impact on the automobile industry and made it mandatory for them to follow the safety procedures. The government has imposed custom duties and regulations of trade, which are complex for the marketing procedure of the company. The government has to be given a certain sum of shares so that they can keep a check on the ongoing practices within the company along with the taxation rules (Garcia 2017).
The fluctuations in the price of the fuel along with the demand of the customers that is relative in nature, as they look for solutions that are economical in nature. The company needs to conduct a thorough research of the market so that they can have a better understanding of the high-end and the hybrid cars that are plying within the country. The prices of steel are also fluctuating in the marketing, which will pose as a threat for the company in the Chinese market (Shende 2014).
The company has to understand the social needs of the Chinese customers so that they can provide the customers with the choice of vehicles that may be suitable for the consumers. The company also needs to give preference to the social status of the people in China so that they can be provided with the choice of cars that they want (Kapinski et al. 2014).
The technology has been advancing on a regular basis in the current market and the Chinese economy is considered to use the latest technologies that are available to them. the company needs to set up their manufacturing plants in the country and hire robots in the production process so that the units that are manufactured in the company can be increased to a great extent (Zhou et al. 2015).
The business has to be set up keeping in mind the rules and regulations that are present in the country so that they are not violated. The laws of safety along with the custom laws have to be followed by the company so that they can set up their business in a proper manner. Holden is known to follow all the rules and regulations that are present in the countries and ensures that the company is under the guidance of the laws that are present in that country (Hao 2014).
The company has to follow the environmental laws as well, as China is highly polluted and they need to reduce the carbon emissions so that they can operate in a successful manner. The company needs to take the environmental pledge that is the ‘CERES Principles’, which consists of ten points about the environmental guide to the business (Zhou et al. 2015).
The company produces various kinds of vehicles such as sports vehicles along with luxury and fuel efficient cars. This helps the buyers, as they get a wide range for selecting their vehicles according to their purchasing power. The company tries to manufacture the products according to the demands of the customers so that it can help them in increasing their value in the local market. The company provides the cars to the customers according to the capacity of the usage of the customers. The cars that are luxurious in nature are manufactured for the elite group while the young people prefer sports cars. The middle class people are more in to cars that are fuel efficient in nature. The cars are manufactured in the range of 1500-2000cc, which extends up to 7000cc as well for the sports cars. These cars are all built according to the demand that the company has in the market place (Andre et al. 2015).
The company will try to attract the all section of the customers, as the products that are being manufactured by the company will cater to the needs and preferences of all sections of the society. The cars that have a higher price will be preferred by the elite classes that are living in the country, which will act as a status for them. The middle class people will be interested in the cars that will help them in saving their costs in every month. The customers who are adventurous will try to purchase the sports cars from the company, which will help in them in providing them with a thrilling experience (Jahanshani et al. 2014).
The company is trying to manufacture hybrid cars so that it can help in protecting the environment in a better manner. The SUV vehicles that the company is manufacturing will be introduced in a new and upgraded manner, which will get a makeover known as Holden Special Vehicles (HSV). This will be done with the help of the local manufacturers so that their ideas can be taken up for completing the project. The CEO of the company has stated that these cars will come in different varieties and models, which will help the customers in having their own preferences. The old varieties of the cars will be launched in a new manner so that it can provide a new design to the customers, which will help in boosting up of the sales. The company will try to provide stiff competition to Ford in the custom car market, as they are trying to enter the market with new varieties of products (Fang 2013).
The company can also provide valuable services to its customers in a new manner. The company can provide free services to the high end customers along with the loyal customers if their cars break down while driving on the road. The company can provide help lines to the customers so that if any accidents that might take place can be handled in an efficient and a better way. The customers can ask for help from the company and the company will provide the customers with another car at their current location so that the customers can reach their destinations safely. This will help the company in having a better understanding with the customers and strengthen the relationships as well (Jahanshani et al. 2014).
The marketing mix serves as a basic foundation for a company to understand and formulate the strategies that will help them in campaigning in a new market. The analysis of the market is based on the macro and the micro parameters, which helps in understanding the characteristics of the brand and the presence that it has over the world (Baccarellla et al. 2014). The marketing mix consists of the factors that are as follows:
The product that the company needs to introduce in the market will be the cars that are compact in nature so that the traffic problems can be avoided. The cars will be produced according to the needs and preferences of the customers and according to the rules and regulations that are laid by the government. The standards of the environment need to be maintained by the company so that the products can be pliable in the new market (Du, Hu and Damangir 2015).
The pricing of the cars needs to be done based on the current economic conditions so that the customers can be interested in purchasing the products. The company needs to set the prices according to the range of income of the middle class group of people so that they can afford to purchase the products. This will help the company in maintaining its equilibrium of price in the market (Raj, Sasikumar and Sriram 2013).
The company needs to choose an appropriate place for launching its product so that it can help in selling of the products in a better manner. The manufacturing and assembling plants have to be located in a better environment so that the products that have been manufactured can be transported to the showrooms in an efficient manner. This will help the company in increasing its sales in the market, as the operational cost will decrease to a great extent (Colmom and Hulsmann 2014).
The use of extensive advertisements has to be done by the company so that the customers can be aware of the product that that the company wants to sells in the market. The promotional activities will help the company in spreading awareness about the product among the customers. The use of newspapers and magazines along with the social media platforms will help the company in explaining the details of the products to the customers so that they can get to know about the product in a better manner. The company needs to evaluate the effectiveness of the electronic media as well, which will help them in attracting the prime time customers towards the company as well (Baccarella et al. 2014).
Conclusion
Therefore it can be concluded that the company needs to set up its business in the Chinese market with respect to the following criteria that has been mentioned. The right customers have to be targeted so that they can help in increasing the sale of the products for the company. The company needs to evaluate the external factors in a better manner so that they do not face any barriers while entering the market. The rules and regulations of the country have to be maintained in a better manner by the company, which will help them in setting up of the company easily. The promotional activities that will help the company in spreading awareness about the product will help in increasing the sales of the product so that the customers can get the benefit of using the product that is being manufactured by Holden. The price that will be kept by the company will be based on the average level of income that is present in the market so that the customers will be willing to try out the product, which will be easy on their pockets as well.
The company first needs to try the exporting method, which is that the products need to be imported from Australia so that it can help in understanding the dynamics that are present in the market.
Reference List
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