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Opel AU case study Essay

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ASSESSMENT 3A: Critical Evaluation Report
Decision Making Exercise 3

Introduction
Founded in Rüsselsheim in 1862, Opel is one of the most technologically advanced vehicle brand in Europe which has a long and rich history. However, after 11 months of effort proved unprofitable, Opel declared to exit Australian market with lower than 10% of the sales target reached(Spinks 2013). This essay aims to give a objective evaluation of Opel’s business activities. To achieve the target, this essay will use the relevant elements in PESTLE framework to critical analyze the external environment, followed by critical evaluation of the business response using evaluation criteria provided.
Case study overview
Opel was highly aggressive when the
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With the ignorance of the market nichers such as Peugeot and Renault, Opel’s target competitor was Volkswagen. VW is prospering with each passing day and becomes a major player who can strive for the first with Toyota in the world market(Moon 2013). However, Opel along with the hole GM is not in a dominant position now. Although Holden is still a big player in the Australian market but can it survive with out subsidies from government? Moreover, Australian auto market is a intensive competitive market which has 66 brands of cars but only 23 millions of population(Dowling 2013). ‘The segments we need to be selling our volume into are so incredibly competitive now, and that’s what changed in a way that’s invalidated the entire business case. ’ Said by Opel Australia spokeswoman Michelle Lang. Regarding other European brands, Renault, with a 60-year history in Australia, only sales 3500 cars in 2011(Dowling 2013). Actually, in the past 10 years, Renault’s best annually sales number is 4656 in 2002 which only reached less than a quarter of its initial target of 20,000 sales(Dowling 2013). Peugeot, established in 1949, only one year younger than Holden, has averaged fewer than 7000 sales during 2003 to 2012(Dowling 2013). Acknowledged the data above, Opel’s 989 sales in the first half of 2013 which was 114 less than Porsche is , to some extend, reasonably(O’Brien 2013).
Technologically speaking, lacking of innovation in products and technology,
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