Honda and posche comparison
New motor vehicle sales in Australia had been increasing steadily from 1991 to 1998, from 514,566 to 807,669 units respectively, when it dropped in 1999 to 786,845 units (Department of Industry, Tourism and Resources, 2002). The drop in sales figure from 1998 to 1999 could be attributed to the global economic crisis in which World Bank (1998) had predicted that "developing countries will be hardest hit by the economic and social costs of global slowdown in 1998-2000". In year 2000 however, sales figure rose slightly again to 787,100 (Department of Industry, Tourism and Resources, 2002).Of the new motor vehicles sales in year 2000, 70.3% ownership of vehicles were passenger motor vehicles, whilst 27.1% were sales of light trucks and 2.5% of heavy trucks sales. It is evident that the passenger motor vehicle is the most popular mode of private transportation in Australia (Appendix 1). According to Deloitte Touche Tohmatsu - Australia (2002), the "Australian automotive industry is currently operating in a changeable and unprecedented climate". The industry is depicted as one with high fixed costs and slim margins. In addition, there is "global over-capacity of participants" and a "small volume base" in Austral
But with this 'slim-line' business strategy, Porsche is able to integrate its dealers by an efficient network for its supply chain management, reducing cost for inventories yet meet the demands of their valued customers. Honda on the other hand, being the size that it is has chosen to develop warehousing facilities in Australia itself, but such storage facilities incur high costs as well. For Honda to build such a supply chain network, as Porsche has done, it would incur an even greater cost, considering the size of the organization. Porsche has already paved the way to the usage for such networks and Honda is only catching up. Many customers on the other hand would prefer that automobile retailers provide more functions in the area of online servicing. Many are yet to buy something online, but have expressed interest in services such as online book for vehicle servicing slots, and spare parts delivery. As a result, customers would prefer that such retailers increase their efforts in their eBusiness and eCommerce strategies and develop a more customer-oriented infrastructure over the Internet. S Investing in technological improvements and product development,
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Approximate Word count = 5054
Approximate Pages = 20 (250 words per page double spaced)
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