Through minimal competition, the conduct of the industry has slightly diminished with an increase in fees, and inquiries into possible collusion. The structure, performance and conduct paradigm of the Australian banking industry threatens the competition evident in the market. Within an industry that has a highly concentrated structure, the conduct of the involved parties tends to initiate anti-competitive behaviours, which improves the firm performance. Competition can be measured within an industry by using various methods, the first is the concentration ratio which is the percentage of the market share owned by the biggest companies within an industry (Young, P 2014). The second measurement tool is the Herfindahl-Hirschman Index (HHI), which calculates the percentage of market shares held by all firms within an industry by square rooting the market share (Bikker, J & Haaf, K 2002).
The car industry receives AUD$4.27billion from only three government Initiatives (Productivity Commission, 2014, p9). Many support these funding decisions of the government however many also disagree that one industry should receive such large amounts of funding. This essay will demonstrate that the Coalition government’s decision not to provide monetary support to Australian car manufacturers which resulted in their decision to move manufacturing overseas was justified. Australia is a capitalist society which private businesses, such as the car industry, aim to make a profit. However, the Australian car industry has endured a combined loss of AUD$1.5billion over a decade (Dowling, 2014, p1).
• Current dominating market position gives advantage in market development and penetration. • economies of scale of scale Weaknesses- • The weakness is that their overhead is expensive to run store facilities all over the world. • Hierarchical corporate structure may impair decision-making. • In an attempt to succeed by means of low prices, may possibly portray Walmart as a cheap store. • Market maturing • Concentration in a low margin industry • • Zoning issues are the store real estate problems.
As a company, Wesfarmers have its main strength in its huge size, capital, financial management, diversification, retail supermarket section, employee retention (7 CEO in 100 years) and top employee selection. The Weakness is immobility, high expectation of shareholders concerning growth, ROE, EPS and capital return, less growth opportunity in Australia, zero experience on overseas expansion, less personal label products, weak departmental stores, adverse economic and political situation. Opportunities for Wesfarmers are huge also – focusing on niche marketing, overseas expansion, good investment opportunities in future sustainable products and venture capital, investment in its other sections alongside home ware supply and retail supermarket. But for Wesfarmers threats are many too. First, new but strong competitors Aldi, rejuvenated Woolworths, board without previous retail experience, poor NPV projects choose by managers as they have a lot of money to waste, wrong acquisition, possible disasters in overseas
Analysing Trade Pattern Table 1 (see appendix) shows the 10 main principal imports and exports of Australia with Indonesia for the year 201... ... middle of paper ... ...n is insufficient. Conclusion Firstly, we have to acknowledge that any conclusions reached are based on many assumptions and an understanding of the inherent mistake of the data. Overall, we can say that Australia is more capital abundant than Indonesia. Australia’s exports are mainly on capital-intensive agriculture goods. As a developing country with abundant and relatively skilled labour, Indonesia’s could manage to exports both capital and labour abundant goods.
International Business journal assignment Globalization Relates to the increased international competitiveness as a direct consequence of the size if the market increasing all the time. Australian business must be ale to compete in a world scale. It involves corporations planning their production processes so that each specialized subdivision of the whole process is carried out in a country where conditions are particularly favourable for that type of work. This has all lead to the lowering the tariffs imposed on countries to protect their local markets. All theses beliefs the consumers greatly because now they have the chose to purchase more products made in foreign countries cheaper.
The decision was influenced by many different factors as well as having knowledge that the car manufacturing industry is economically taxing. The fact that the production of cars in Australia was already in decline made a transformation possible as well as Australia’s high cost and low productivity. This can be viewed, said by Paul Bloxham who is HSBC’s Chief economist, as “globalisation” stating that Australia could obtain the same low-cost manufacturing in relation to the rest of the worlds manufacturing regions. Toyota felt that the Australian dollar was extremely high, and in this case was hindering the company’s exports from functioning sustainably, making the trades unsuccessful. As the engine and car producing company became part of the global manufacturing market, many inexpensive production expanses were located which shrank the size of the Australian industry.
Economic divergence in Australia – it is an issue that I feel all Australians should be aware of and deal with, because if the gap is not bridged, then Australia's economic prosperity and social fabric will be under serious threat. Evidence of this divide is seen with the differences in unemployment rates and household income between the urban and rural regions. Australia's economy has sent inner-city employment levels through the roof - thousands of millionaires created each year by exploding real estate prices in Sydney and Melbourne have helped to feed a huge retail boom. This, however, goes only so far - there is a 'dark' side to our prosperity - Australia is experiencing a wealth divide, and areas in the bush and other rural communities are struggling for survival. Evidence may also be found in the city, where suburbs a few kilometres apart differentiate enormously in terms of income and unemployment rates.
The domestic airline market consists of a duopoly of two firms, Qantas and Virgin Blue. Since Qantas and Virgin are the only two Airlines supplying domestically in Australia, they account for all of the profits in the market and consequently they are in direct competition with each other. Because only two firms are competing, each firm must carefully consider how its actions will affect the other, and how its rival is likely to react. Thus, strategic considerations regarding the behaviour of competitors in this duopoly are essential in order for Qantas and Virgin to set prices. "Game theory is often used as a model to analyse the strategies of individuals or organisations with conflictin... ... middle of paper ... ...a pp.-333-355.
Thus, under oligopoly a firm not only consider its own demand curve but also of its rivals in the industry. Thus, no firm in oligopolist industry can fail to take into account the reaction of other firms to its price and output policies and therefore there is a strong interdependence among the firms under oligopoly. 2. Importance of advertising and selling costs: Since the number of firms are very few in oligopoly market, each individual firms face intense competition from its rival firms and thus rely heavily on advertising of their products to lure the customers and enhance the demand of their own product. Thus, each firm employ aggressive and defensive weapons to gain a greater share in the market and to maximise sale.