Over the past few decades, what key process, product or organizational innovations have been introduced into the industry in which you anticipate developing a career? Why do you think these innovations have been introduced? Are these changes part of a wider social and economic trend? Are they likely to have (wider) significant effects outside your industry? Explain the effect of these innovations on professional practice in the relevant industry. Do you anticipate further changes or innovation? Discuss the likely effect of these? What (if any) professional practice or organisation level responses do you suggest to address the effects of the likely changes?
The Automotive industry in Australia consist oligopolistic producers of vehicle namely the Ford Motor Company, Toyota Motor Corporation and the GM Holden in Australia (Chou et al. 2015). Over the past few decades, various procedures and organizational innovations have been made in the automotive industry of Australia (Xu 2018). The paper illustrates the Australian automotive industry and the scope of innovation in the industry in the upcoming days. The key research questions of this study include proper identification of process, product and the innovations related to the industry, why has been the innovation been introduced and the possible effects of innovation on the professional practices for anticipating further innovation or change. The paper will discuss some of the key issues related to the automotive industry and the growing competition in the market of Australia.
Joining an automotive industry and developing a career in the industry has been my dream since childhood. I have always been attracted to automobiles and vehicles from my initial days since the parts and the structures of them use to fascinate me and I developed keen interest regarding automobiles and their management from that time. Throughout the years, the government of Australia has enabled great protection towards the Automobile industry of Australia in many ways like ensuring minimum level of the requirement of local content, import of tariffs and quotas on the vehicles coming from foreign and more (Rathod and Sardar 2015). This help from the government has enabled in successful development of the automobile industry throughout the decades and limited competition from the external forces. But over the decades it has been found that these over protections by the government have failed in the effective growth of the industry to deal with the competition against the large and strong foreign market (Hashmi and Biesebroeck 2016). Hence in the current era, the Australian government has decreased its interference to the norms of the local automobile industry of Australia so that they can adapt with the high level of competitiveness in the global market of Automobiles in Australia (Rimmer 2017). The Australian automobile market has been steadily rising in the current years. In the year 2000-2001 the market of automobiles has recovered from 11% down turn in the middle of the year with the introduction of major reforms related to taxation (Liao, Rice and Lu 2015). Furthermore, advancements in technology and the environment of international competitiveness has restructured and shaped the entire industry (Dodgson 2018). One of the major alteration in the automobile industry of Australia throughout the last few decades has been the increased use of computer aided tools and related product development.
Figure: 1 Source: (Mahfooz 2015)
The figure above portrays the rate of sales in the vehicles in the last few decades. More than two third of the new manufactured vehicles were sold and furthermore the industry experienced certain economic growth.
One of the current initiate by the automobile industry is the introduction of the plan “new car plan for the greener future” which helped the industry for the development of the sector and the production of cost effective vehicle with low carbon emission (Drauz 2014). This initiative fortified the local supply chain and increased the foreign investments on the automobile market of the Australia. I have always desired to be a part of this dynamic and growing industry. I believe that the nations should produce its own vehicles apart from the import from other countries. This is because this industry has a great effect on the nation’s economy and revenues by the system of taxation.
Some of the major effects in the automobile industry of Australia in the current era took place due to the globalization (Dodgson 2018). One of major benefits of the globalization on the industry has been the reduction in the rate of tariffs and the increased in the trade promotion among the countries of the globe. Some of the notable positive impacts of globalization includes increase in the export system, development of the retail, service and the repair sectors and competitive skilled forces.
One of the major drawbacks of the automobile industry in Australia is the increase in the rate of expenditure from the past few years. The figure below illustrates the increasing rate of research and development expenditure in the automobile market.
Figure: 2 Source: (Hashmi and Biesebroeck 2016)
This area of concern tends to impact the market of the automobiles in the long run.
The theoretical framework acts as the foundation of understanding discussion of the issues and growth opportunity of the automobile industry in the nation. The impact of increased mechanism in the automobile industry in the current decade has been beneficial (Liao, Rice and Lu 2015). This is because technological advancement has revolved over the years resulting in more use of machines in the place of human activity. In the automobile industry of the Australian market, companies have been striving towards competing the norms of automation for making the procedure of the employment activity in the company more cost effective and less time consuming. Another important factor is the impact of public policies and funding by the Australian government on the automobile industry of Australia (Rimmer 2017). The market of automobiles has been steadily rising due to the proper funding and investment. The implementation of the policies has some of the important effects. The increase in the export and import of the machineries of the vehicles and maintenance of a perfect standard in the competitive international market contributes to the positive effects. Furthermore, policies and laws of the Australian government helps the industry to overcome various of the externalities that are associated with innovation in the private automobile sector (Chou et al. 2015). Federal policies enable in improving public benefits and fuel efficacy which are vital to the national competitiveness. Apart from all the advantages and the good impact of the policies, the new standards are not strict enough to develop the innovation that is required to remain competitive globally (Rathod and Sardar 2015). Furthermore, researches have been found that policies to drive the demand of the consumer for fuel efficient vehicles are comparatively weaker.
Automobiles are some of the complex products and the industry of automobile survives on the context of frequent innovations of new models and cost-effective vehicles for the people of the nation.
Conclusion
Innovation is cost effective and it requires long term investments without the expectation of quick returns on the investments. In case of the automobile market of Australia the cost incurred for bringing innovation to the market is not sufficient since the nation is not export oriented. It is required for the automobile industry to improve their partnerships among the producers and the users, transfer skills and knowledge among the users and improve the organizational infrastructure by raising standards. From the above discussion it can be concluded that the Automobile industry in the Australia has tend to develop more export oriented and competitive over the last few decades. The industry has initiated several innovations in the light of advanced technology and gave gained various multi skilled workers for initiating effective competition against the reliability and the quality of imports. These changes in the Automobile industry have enabled it to initiate achievement of the profit margins. But still the automobile industry requires new competencies in intelligent transport systems, purchasing and finance to broaden up the product basis of the automobiles for raising the standard of the nation in the automobile global market
References
Chou, C.W., Liao, W.C., Wu, S. and Wee, H.M., 2015. The role of technical innovation and sustainability on energy consumption: A case study on the Taiwanese automobile industry. Energies, 8(7), pp.6627-6640.
Dodgson, M., 2018. Technological collaboration in industry: strategy, policy and internationalization in innovation (Vol. 11). Routledge.
Drauz, R., 2014. Re-insourcing as a manufacturing-strategic option during a crisis—Cases from the automobile industry. Journal of Business Research, 67(3), pp.346-353.
Hashmi, A.R. and Biesebroeck, J.V., 2016. The relationship between market structure and innovation in industry equilibrium: a case study of the global automobile industry. Review of Economics and Statistics, 98(1), pp.192-208.
Liao, T.S., Rice, J. and Lu, J.C., 2015. The vicissitudes of competitive advantage: Empirical evidence from Australian manufacturing SMEs. Journal of Small Business Management, 53(2), pp.469-481.
Mahfooz, Y., 2015. Brand equity-consequence relationship: Evidence from Automobile industry. International Journal of Business and Management, 10(3), p.81.
Rathod, S.B. and Sardar, H.C., 2015. CSR Disclosure by Selected Indian Companies of Automobile Industry during Pre and Post Companies Act, 2013.
Rimmer, M., 2017. Intellectual property and autonomous vehicles in a gridlock economy. A Submission to the House of Representatives Standing Committee on Industry, Innovation, and Science and Resource’s inquiry into the social issues relating to land-based driveless vehicles in Australia.
Xu, Z., 2018. Discussion on innovation system construction of new energy automobile industry in China.
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