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Essay / Australian Automotive Industry - 1409
AUSTRALIAN AUTOMOTIVE INDUSTRYThe Australian automotive manufacturing segment is one of the major contributors to the market sector of the Australian financial system. Compared to other sectors that make up the Australian market segment, in 2012-2013, the manufacturing sector accounted for the fifth predominant share of accumulated value. The Australian automotive manufacturing segment had the second largest distribution of hours worked and the third largest employer. The Australian automobile manufacturing segment had the fourth largest share of venture capital and the fifth largest net capital reserve allocation (Barnes, P., Soames, L., Li, C. and Munoz, M. 2013). Threat of New Entrants Foreign Automobile The producer would face many impenetrabilities if it were to infiltrate the Australian automobile manufacturing sector. The subtleties can additionally be distinct as a high barrier to entry. One of the complexities that foreign automakers would have to take into account at some point of infiltration would be the high cost required by the stipulations of empowering manufacturing equipment and the emergence of an intensive distribution system and well behaved. An additional difficulty that foreign car manufacturers would face would be accessible car manufacturing competitors in Australia. Existing competitors in car manufacturing in Australia are colossal, such as Toyota, Holden and Ford. Existing car manufacturers in Australia would appear to intimidate new entrants as they now gain a superior position in economies of scale and opportunity (Baker, M. and Hyvonen, M. 2011). Rivalry between competitors In Australia, there are no automobiles. ..... middle of article......Chinese Automobile Sector, Reserve Bank of Australia Bulletin, March. Barnes, P., Soames, L., Li, C. and Munoz, M. 2013, Productivity in Manufacturing: Measurement and Interpretation, Staff Working Paper, Productivity Commission, Canberra. Bracks, S. 2008, Review of Australia's Automotive Industry, Final Report, July, Canberra. Ciravegna, L., Romano, P. and Pilkington, A. 2013, 'Outsourcing practices in automotive supply networks: an exploratory study of full-service vehicle suppliers', International Journal of Production Research, vol. 51 , no. 8, pp. 2478–2490 Haugh, D., Mourougane, A. and Chatal, O. 2010, The automobile industry during and beyond the crisis, OECD Economics Department, working paper No. 2010. 745, January. Hawker, NW 2011, “Automotive Secondary Markets: A Case Study in Systems Competition,” The Antitrust Bulletin, vol. 56, no... 57 – 79.