A Story for the Australian Automotive Industry

Introduction to the TopicAustralia is one of only a few countries with the capabilities to design cars from scratch and manufacture in significant volumes. Car sales in Australia are also an important factor of the Australian Automotive Industry and the Australian Economy in total.The Australian Auto Industry (A.A.I. in short) can be divided into two interrelated sectors, the Production ( Manufacturing) sector and the Car Sales (or Import-Sales) sector, both equally important for the total performance of the A.A.I. On one hand, the Manufacturing sector refers to the market conditions under which Australian Manufacturing businesses compete, by producing vehicles and related products, with the main aim of maximizing profits. On the other hand, the Sales sector refers to the market conditions under which car representative sale businesses compete, by the sale of cars and related products, having the same aim with businesses within sector one.It is very important to state the distinction between these two sectors within the A.A.I., as we will be talking about two different market structures, business strategies, competition conditions, e.t.c. In order to analyse these market structures it would be appropriate to develop two economic models, one for each A.A.I. sector.1.1-Analyzing the Manufacturing SectorThere is only one market structure that can best describe the market conditions in the Manufacturing sector if A.A.I., this is Oligopoly. As there are only two organizations that produce cars in Australia, and these are Ford and Holden, the competition methods and pricing strategies are based between these two organizations. The following economic model shall help define the competition and economic conditions for the Australian Automotive Manufacturing market.The first important characteristic of Oligopoly that needs to be stated is that prices between competitors tend to be “sticky”, which means that they change less frequently than any other market structure. This statement will be explained in more detail later on, when we will be developing the Game-Theory model, as it is a very important concept of competition. The second most important characteristic is that when prices do change, firms are likely to change their pricing policies together. These two characteristics can boost up competition within the market. Firms will either try to match rivals’ price changes or ignore them. This is depended on the Game-Theory that is explained bellow.However, the recent market conditions for the Australian Automotive Industry and the actions of the Australian Government have worsen the competition conditions and possible pricing options available for firms in the market. The production and maintenance costs for a manufacturing business in Australia are already high and rising, mostly due to lack of economic resources and advance of technology. That is, as Holden and Ford try to compete each other, given that prices tend to be “sticky”, they are forced to focus on technological advantage and marketing. Both of these business sectors produce high costs. Furthermore, the Australian government has made it clear that is unwilling to further subsidize automotive organizations in the market. All these factors stated above produce a negative effect on the competitiveness of both firms. In other words, rising costs alongside with decreased revenue push firms in experiencing lower and decreasing levels of profitability.Profitability and the level of competitiveness are highly interrelated in an oligopolistic market structure, being the two most important factors, alongside with product differentiation, in the competition policies that the firms follow. When we say that the level of competitiveness of a firm is very low, we mean that the firm cannot react effectively to any price changes or competition changes or even changes in production costs. This may leave the firm depended on its’ competitor’s pricing and competition actions, not being able to affect the market competitiveness at all. The firm is then exposed to external danger and can be pushed out of the market, or even worse to shut production and declare bankrupt.1.2- The Game-Theory Model for OligopolyThe Game Theory model is used to explain the pricing and competition policies of firms in an oligopolistic market structure. Furthermore, it can show the few different competition policies based on pricing that the two firms can follow, that is High and Low as stated above. All firms in this market structure follow a Game-Theory model, although it is surely more detailed than our example, in the process of trying to forecast competitors’ pricing and competition movements and also keep track of the competition levels in the market and market share. But how does this happen?For example, let’s say that there are four different fields, each divided in half. These fields represent the pricing strategies that Holden and Ford may use in the process of competing each other. Field A and C represent a High-Pricing policy for Holden, while fields A and B represent a High-Pricing policy for Ford. Lastly, fields B and D represent a Low-Pricing policy for Holden, while fields C and D represent a Low-Pricing policy for Ford. When both firms decide to follow a High-Pricing policy they share a profit of, let’s say, $12 million. If Holden decided to move to a Low-Pricing policy it will experience a maximum of $15 million profit, while Ford’s profitability will fall to $6 million. The exact opposite may also occur, while if both firms decided to follow a Low-Pricing policy they would realize a maximum of $8 million of profit.What we can identify from the above example is that firms in an oligopolistic competitive market rarely change their pricing policies because this may produce a negative effect on their profitability levels. However, Holden and Ford, being the only two firms in the Australian Automotive Industry, they will focus on competing through product differentiation and marketing. That is, they will try to compete by differentiating their products, for example by producing vehicles with different features, or even base their production on technological advantage. Marketing plays an important role here, as it is the main tool that delivers and connects the customer with product. For example, if Holden introduces a new driving technology that improves driving experience and safety and produces this technology alongside with a newly designed vehicle, it is quite likely that Holden will effectively differentiate its newly designed vehicle from a relative vehicle of Ford and lure more customers in the store. Holden may also use marketing techniques to deliver this technology to the public, in the form of knowledge; hence try to boost sales without changing its pricing policy. However, it is important to state that this new technology may produce higher production costs, if not evaluated properly; hence Holden can only rely in increasing its market share to gain greater profitability. The sales part, however, will be analyzed in more extend within the next chapter of this report.The Game-Theory is not just a theory for the Automotive Industry in Australia, it’s a fact. It shows us that auto manufacturers in Australia have based their competition strategies on all the factors stated above and as much as they possibly can on pricing strategies. They may advertise that they have low prices, but in fact their prices are very stable. If we have a close look at Holden’s or Ford’s websites, we will identify that there is a huge variety of products and each firm competes in that. However, the new market conditions stated before have greatly changed the way auto manufacturers think of the future and this in turn may change their pricing and competition policies, or even determine their existence in the market.2.1- Analyzing the Import/Sales SectorWhile the auto manufacturers are considered to be operating in an oligopolistic market structure, importing and selling vehicles or relative products is a different story. The import and sale of vehicles is the second and equally important business sector of the Australian Automotive Industry. There are many different car selling businesses and we shall only consider first-hand sales, as second-hand sales in general are not included in economics and more specifically in GDP measurements. To enter the industry hard at all as there are not many barriers to entry, however someone who is interested needs to consider of the high costs in setting up an automotive dealership. All businesses in this market are mostly based on product differentiation to compete and while prices are not “sticky”, pricing competition is set up by the market mechanism and tends not to be considered a regular phenomenon. Lastly, cost analysis and cost management play a very important role. All of the above characteristics refer to the Monopolistic Competition Market Structure. In this market structure we will focus on two phases, the short-run phase and the long-run phase, each with different competition characteristics and outcomes.An important factor that we need to state here is that when the costs of developing a vehicle in the manufacturing sector rise, then the cost for selling the vehicle for a dealership may rise as well. This is always depended of course on if the vehicle was produced in Australia and if it was produced overseas, under what economic conditions was it produced. Price might be “sticky” for manufacturers, however prices will change much easier in this sector if needs be. Here firms will change their pricing policies if costs either rise or fall and this is always depended on the market mechanism. The amount of competitiveness along with the amount of price elasticity of demand will depend on how many rivals the monopolistic competitive firm will have to face.In such market the following situation is very common, a situation that helps us distinct between short-run and long-run:Stage OneIn this stage the firm experiences economic profits. However, this fact will draw new firms in the market causing the profits to be competed away.Stage TwoThe economic losses indicated in this stage will cause many firms to exit the market, as they cannot keep selling under these market conditions.Stage ThreeIn the final stage, the market clears-up, or reaches equilibrium point. As all firms that needed to exit the market have done so, the market mechanism comes to the point where no economic profits/losses are realized by the firms. This is the point where the market is most stable.Studying the situation above we can identify one very important fact for any monopolistic competitive firm in the Australian Automotive Industry/ Sales sector. That is that in this market structure, in the long run, firms will realize only normal profits and the market mechanism will eventually reach an equilibrium point. Hence, in the long-run firms will compete mostly through product differentiation. However, in the short run firms may experience economic profits or losses and this is what causes firms to enter or exit the market and “shows” firms how to compete and when to apply pricing competition policies.ConclusionThe Australian Automotive Industry may be experiencing rough market conditions, mostly because there is no more government support; however competition and profit maximization is still possible. Thinking of moving overseas is not always a good option for the manufacturing businesses, as the Australian Economy needs the manufacturing sector, as it represents a reasonably big part of GDP.
Market competition conditions are well defined for every manufacturer or car dealership, hence any business in the market ought to use the available to them competition strategies and achieve higher market share and profitability level or stabilize its profitability levels. Either way, these are the main goals for almost every profit-motivated business in any market type under any market structure. However, every business ought to define the market structure that is operating in, so that it can then clearly define its goals, strategies and policies. The market mechanism is in all cases responsible for all the above strategies and most of the cases responsible for setting up pricing policies or indicating pricing and marketing strategies.

Best Flea Medicine For Dogs – Stop Fleas in Their Tracks

K9 Advantix Blue kills 90-100% of flea on your dog within 12 hours and provides protection against re-infestation for four weeks or more. K9 Advantix also kills mosquitoes and most ticks that might try to attach themselves to your pooch.This popular flea medicine for dogs is available without a prescription at prices that any dog owner can afford. Advantix Blue is a great product unless your dog is friends with a cat.Ingredients in K9 Advantix can be harmful to cats if the cat is one that rubs against or grooms your dog. For homes where cats and dogs reside together, pet owners should choose Advantage, Frontline Plus or Revolution dog flea medicine.Revolution for dogs is widely recommended by veterinarians and is a prescriptive flea medicine for dogs that also solves other health problems in canines. Revolution eliminates fleas while it also protects the animal from heartworm and other worm parasites. Revolution is approved by the FDA and is a systemic, broad spectrum parasiticide that has been shown to offer a high safety factor for canines.Compared to other spot on flea products for dogs, Revolution is more costly than leading brands but adds the benefit of heartworm prevention that others lack.Frontline Plus provides excellent flea killing properties with tick protection for dogs. In many areas of the country ticks are real problems especially in spring and fall. Ticks carry disease. Ticks are known to carry Lyme disease which afflicts humans but Lyme disease can also be spread to canines. Like fleas, ticks are dirty little insects that suck blood and not insects you care to have on your pup.You may choose the option of orally administered dog flea medicines such as Program or Sentinel. These products prevent fleas from maturing but do not kill adult fleas present on the dog. They are not recommended for animals that suffer from flea allergies but are effective in interrupting the life stages of fleas to prevent the insects from maturing and reproducing. For dogs infested with fleas, owners may use the one dose Capstar in conjunction with one of the oral flea medicines to quickly kill off adult fleas.For total protection from fleas, pet owners may need to take action over and above treating their dog. If a dog with fleas Is in your home you may need to kill fleas in your carpets, upholstery as well as thoroughly washing dog bedding and the area around the bedding.If you live in states where fleas are active year round and climate is not cold enough to kill off the populations in the winter, you may want to treat your entire yard for fleas. The strong sprays meant to kill lawn insects are no longer available to home owners. The poisons in the sprays were great at killing fleas but poisonous to the environment.Organic enthusiasts suggest sprinkling or spreading diatomaceous earth over your grass. This will not harm humans or pets but will kill fleas and other insects. It is definitely environmentally safe but you may need to re-spread this product every time you mow and most homeowners will not have the time or patience for this remedy.Some professional pest control companies offer to spray your yard with chemicals such as Talstar or Demon WP which kill fleas as well as ticks, ants, roaches, spiders and other common bugs. These products contain growth regulators just as included in flea medicine for dogs and one application should last up to 3 months.If your pet has fleas, attack the entire problem to rid yourself of it. Treat your home and your yard, wash all your pet bedding in very hot water, buy the best flea medicine for dogs from a reliable online source and make fleas and flea dirt a think of the past for you and your dog.

The Future of Regenerative Medicine

The field of regenerative medicine has been one of the most groundbreaking areas of scientific advancement in recent years, as scientists explore ways of creating functional tissue to replace old or damaged organs and other tissue to treat a variety of conditions. Regenerative medicine is predicted to become an increasingly common and vital area of medicine in the future, particularly with regard to stem cell sciences.As stem cell research becomes ever more widely understood as an alternative to older methods of regenerative medicine, such as bone marrow transplants which do not enjoy the same high level of success, more people are looking to stem cells as a means to treat debilitating conditions such as Alzheimer’s, diabetes and Parkinson’s, with new discoveries being made all the time.Putting to use millions of cells found in the human body for a range of purposes, stem cell research has also experienced success in treating spinal cord injuries and multiple sclerosis, opening up new areas that were previously untreatable with conventional approaches, as well as allowing scientists to carry out research into cloning and replication that could be similarly vital for the future.There has long been controversy surrounding stem cells as a form of regenerative medicine, due to their origin in embryonic tissue, but thanks to official acts such as United States President Barack Obama signing an Executive Order to lift many of these restrictions, the field now has greater freedom to research, develop and practice new treatments for a growing number of patients, which could potentially save thousands of lives every day.This means that the second decade of the 21st century offers many new opportunities for regenerative medicine and stem cell sciences in particular around the world, as new research centres are opened and events such as the World Stem Cells and Regenerative Medicine Congress become firm fixtures of the scientific calendar.Even outside the scientific community, research is becoming increasingly understood and appreciated by the general public as an innovative way to treat a range of conditions, and is anticipated to enter mainstream medicine in the next few years – especially as the lifting of restrictions means patients no longer have to travel to foreign countries to seek treatment at private clinics. With regenerative medicine supported by legislation, patients will be able to enjoy high quality, legal treatments from their doctor and enjoy a new lease of life.