Industry Analysis & Industry Trends
The Automotive industry encompasses a range of smaller industries that have performed variably over the five years through 2015-16. Strong sales of new cars have supported motor vehicle wholesalers and dealers, while service agents have benefited from the increasing number of motor vehicles registered on Australian roads. However, local motor vehicle manufacturers have struggled, as high fuel prices for the majority of the past five-year period drove consumers to prefer affordable, fuel-efficient imported vehicles rather than petrol-guzzling locally manufactured cars. As a result of these opposing trends, industry revenue is forecast to rise at a sluggish compound annual rate of 1.1% over the five years through 2015-16, to reach $161.9 billion... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry vary significantly depending on the type of firm. Manufacturers (of vehicles and parts) have very high barriers to entry. Car producers require a very significant level of investment into large-scale production and machinery to support this. They also need to invest into costly R&D projects. New entrants could struggle to carry out such a level of investment and have trouble having access to the latest technology. Component manufacturers require strong relationships and contracts with car producers, something that a new entrant will not have.
Retailers have medium barriers to entry. Their main hurdle is being able to enter into franchises with manufacturers to carry brands that consumers want to buy... purchase to read more