Industry Analysis : Automobile Industry

PEST is creation for Political, Economic, Social and Technological. This investigation is utilized how these four external factors influence to business circumstance. Essentially, a PEST investigation helps you decide how execution and exercises are

The PEST analysis helps to explain the critical factors in the organization's external environment. The factors include political, economic, social and technological. For Myer, these forces combine with the internal factors, and other external factors like competition. The Australian consumer goods retail market is worth $121 billion (IBISWorld, 2012) but is heavily fragmented. Myer is the third-largest company in the industry behind David Jones and Harvey Norman, but with $3.158 billion in sales holds just 2.6% market share (Myer 2011 Annual Report). This implies that competition is only one of many factors that can contribute to the company's results. This PEST analysis will help to identify the other major factors.

PEST analysis will be able to be utilized to help detect trends in the external environment that will eventually discover their method into the competitive environment. It gives a relation between the general and competitive environments in that weak signals in the general

The automobile industry is a capital intensive industry, the players in the industry need high capital expenditure in order to maintain their market position, but the expected returns in the future is quite high. The industry analysis can be carried out under the following heads:

PEST analysis exists as the macro-environmental factors that will impact the industry’s ability to provide the products offered to its underlying customers. Controlling factors, such as threats and opportunities is challenging, since they have an effect on the business, as well as outside it (Cork, 2016). A proper understanding of the macro environment of Lily’s Kitchen is vital since the managers are able to effectively forecast the market trends and greatly take the advantages of the underlying opportunities while minimizing threat through adjustment of its operating strategies (Cork, 2016). Therefore, the determination of the factors affecting the firm’s internal operational factors such as demand, supply levels and cost is essential. Hence, PEST analysis is a beneficial tool to understand the whole environmental trends in which the enterprise is operating (Cork, 2016).

The automotive industry has become one of the greatest industries today and is one of the world’s most crucial economic sectors by revenue. All the same, not only does automotive industry develops and manufacture but it also markets and sale motor vehicles globally.

Macro environment is crucial to the development of a company. All the external factors can have huge positive or negative influences on Travis Perkins plc, therefore a better understanding of the environment of the company is of supreme significance (Peng & Nunes, 2007). Among all the analysis tools, PEST analysis is one of the most effective tools to analyze the external environment of a company (Riley, 2012). This part will demonstrate PESTLE analysis of Travis Perkins plc below. The result of PESTLE analysis can be demonstrated in the following table 1.

The figure illustrates that Australian is among the highest labour country as compared to other higher automotive countries. Car industry workers in Australia are waged About $50 an hour when all taxes, privileges and other benefits are included, compared to $32 an hour for industrial workers across all sectors. According to local factory sources, labour financial statement for 65percent of an automobile’s manufacturing cost in Australia. The budgets of producing motor vehicles in Australia is more as compared to some other countries. Holden Ford and some other countries stated that the cost of motor vehicles trade in Australia is two times higher than in Europe, and four times higher in Asia. The high cost producer of vehicles is because

The automotive industry designs, develops, manufactures, markets and sells motor vehicles, and is one of the world’s most important economic divisions by profits. This analysis focuses on the industry, specifically, manufacturers of automobiles. There are five competitors in the StratSim environment: Firm A, B, C, D, and E. Industry sales in the most recent year were 4.3 million units, with expected growth in the next year. Within this industry, there are seven-vehicle classes: Economy, Family, Luxury, Sports, Minivan, Truck, and Utility. There are two new classes with potential – if properly marketed.

Ever since the 2008 recession US automobile companies have been on a steady downhill slide, but actually you can trace this downward trend even further back than 2008. US car companies have been feeling the heat since as early as the late 1980s when Japanese car companies laid claim to American manufacturing plants . Despite a shot in the arm in sales over the past five years, American firms are still on the decline. This case analysis aims to diagnosis the problem, provide analysis of the problem, and propose a viable solution to the problem from the perspective of the US automobile market share leader, General Motors.

AutoZone industry would be made up of auto parts, automotive accessories, and maintenance items for vehicles to be used by the person who does the work themselves or a professional who needs parts for their shop. Diagnostic testing is available for alternators, batteries and starters, using ALLDATA software to zero in on what needs to be repaired but you cannot buy tires nor will AutoZone will make the repairs for you (www.autozone.com). With all the factors to take into consideration the primary industry would be lower prices because this was the basis for starting out AutoZone similar to Walmart by making products available at low prices every day by shipping the products out to the stores from their own distribution center (Parnell, 2008).

The PEST analysis is a well known and widely used method to analyze the environment of a business. It takes in to account political factors, economical factors, social factors and technological factors providing a very good overview and preliminary analysis.

Autozone primarily falls under the NAICS Code 441310. Code 441310 is the Automotive Parts and Accessories Stores code. This industry is made up of retail stores that specialize in new, used, refurbished, and aftermarket parts as well as the repairing of parts or accessories on the automobile. “The automotive aftermarket industry supplies replacement parts (excluding tires), accessories, maintenance items, batteries, and automotive fluids for cars and light

Most are sold through franchised dealerships, although up to 5% of deliveries go to institutional buyers (mostly rental companies)

In PEST analysis, we will look into what will be affect by the business environment. It includes political environment, economical environment, social environment and technological environment.