Choosing a Career For Life – Healthcare Industry Vs Automotive Industry

Choosing a career is an important goal for any individual. Most of us want to make a choice that will last forever. When looking into one field or another it is the long term benefits that help us make our final decision about what career path to take. The following tips will help you determine which career for life you are most interested in when thinking about the healthcare industry versus the automotive industry.

As a healthcare provider you are providing your services for the welfare of the society and to the people. The healthcare field has many opportunities from working in hospitals and clinical facilities all the way to in home care. Often there are benefits and competitive salary packages for healthcare professionals. These benefits often make the healthcare industry an ideal choice. The automotive industry has a range of opportunities as well. You can be involved in the development and production of vehicle components. This will allow you to be a part of new technology when it comes to the cars we all drive. There is also the sales side of the automotive industry that allows you to provide service and a product to people.

When you are thinking of making a choice like a career for life it is important to think about the features and benefits of your fields of interest. The following is a list of features and benefits that will help you choose between the healthcare industry versus the automotive industry.

Helping the Society: A healthcare professional has the opportunity to provide care to a large number of people. Lending this helping hand to society is not only rewarding but satisfying as well. The automotive field on the other hand is to make a better product and to sell it at a high price. Most often what the bottom line profit is tends to be more important than customer satisfaction. In addition, working to develop new designs and keeping up with the latest technology can make for a stressful environment to work in.

Training Programs: Considering the various levels of healthcare positions you are able to choose a program that specializes in the area you are most interested in. Once you complete a training program and have your diploma or certificate in hand you ready to start your career. In the automotive industry training is often conducted within the industry. Typically training is conducted for a period 12 to 24 months. You are educated on various subjects and then are able to choose the area in which you wish to specialize in.

Education Levels: A healthcare career usually requires less than 4 years of college education unless your goal is to become a doctor or practitioner. There are several areas in the field that you start working in with just a high school diploma. In the automotive industry you are looking at 4 years of college education to be in the top salaried positions. There is little opportunity for the high school graduate.

Choosing a career for life based on the above features and benefits can help you make an educated decision. When comparing healthcare vs. automotive industries the healthcare field is sure to be a more rewarding and achievable choice.

A Look At Social Networking For The Automotive Industry

Social networking for the automotive industry seems a bit hard to fathom. With all of the sites out there doing it, but only concentrating on a couple of different sectors of the industry. The way I see it for this to work, it needs to be more all-inclusive.

The automotive a whole is having hard times right now, and believe me they are all looking for ways to make their businesses perform better. They go to the web because it’s one of the best places to push their businesses without having to spend more money then they can afford.

With all of the buzz on the net about social networking, you can bet they are looking in to it, just as I did. A lot of them are probably finding the exact same thing as I did, that there are no social networks that are directly related to their business.

Why on earth would you join a social network that doesn’t relate to your business? I know I wouldn’t do it, if they are looking to promote their business by the use of a social network, it just makes sense to look for like minded people in the social networks.

It stands to reason that a person who is looking to promote their auto restoration shop, doesn’t want to join an automotive social network that is aimed at new car dealers. What point is there to spend the time that it takes to network with people there.

Social networking takes a lot of time to do right. You need to figure out the best way to use it for your business. It takes hours of studying to get it right, you need to know demographics, and why the customers would respond to your as opposed to another person.

If you on the network that is aimed at you specific sector you increase you chances of it working for you greatly. Although a lot of the automotive industry still has no place to go for this, people are out there wondering why automotive social networking seems to be failing as a whole.

The bottom line is there is no such a thing as the idea of as a whole, it is just a few sectors of the industry that are covered in the social networking universe. I wonder how these people have come to a conclusion that it’s failing as a whole, when that doesn’t exist yet.

When you take a slice of pie, you can’t know the entire story of that pie. No I don’t think that automotive social networking as a whole has failed, I think that it need to have deeper exploration. The automotive industry is a tough way to make a living.

A lot of the people in the industry feel as if they got left out in the cold, if you give them a nice warm fuzzy place to call home, you can bet they will swoon right on it. They will attack like a pack of vultures, but they need to fell like they are getting something from it.

In the automotive industry we don’t have piles of money sitting around to experiment with, we need things to work the first time. I realize that most of these web sites don’t charge to join them, but it does take a person a lot of time to make them work.

A Story for the Australian Automotive Industry

Introduction to the Topic

Australia 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 Sector

There 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 Oligopoly

The 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 Sector

While 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 One

In 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 Two

The economic losses indicated in this stage will cause many firms to exit the market, as they cannot keep selling under these market conditions.

Stage Three

In 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.

Conclusion

The 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.

Will the Electric Car Cause a Power Shift in the Automotive Industry?

There was a big imbalance created in the automotive industry, as the Western world’s automotive industry came under serious pressure due to some car manufacturers management and the economy. In the same period, the Eastern world started to manufacture a lot more cars, which were cheaper because the Eastern world’s labor costs are much cheaper than the rest of the world. The reason why they have cheaper labor is due to the massive labor forces they have available.

At the same time, the Eastern world tackled their quality problems by head hunting highly skilled automotive engineers from the Western world. This caused a massive brainpower wave between West and the East. This brainpower shift caused the amount of high quality cars that gets manufacturer in the East to increase massively.

The Eastern countries even merged with some of the world-renowned car manufacturers. Some of these world-renowned manufacturers decided to open their own plants in the East. This wave in the East came like a tsunami, which could not be stopped, this caused the competition to became fierce between East and West.

Predictions are that the East is going to overpower the West in the field of car manufacturing, due to their massive labor force. These labor forces combined with the highly skilled automotive engineers they have head hunted from the West cause them to be a force to be reckoned with.

This whole paradigm shift will cause that the East and Japan to join up and Japan is already a reckoned force in the motor industry. There are predictions that new electric cars will also come out of the East as Mr. Warren Buffet bought some shares in a big company by the name of “BYD” in China who plan to tackle the electric car industry, “BYD” stands for “Build Your Dream”.

All the major players in the automotive industry are busy developing electric cars, even in South Africa there is a company developing an electric car. This will cause a power shift on its own in the automotive industry, as electric cars will replace conventional cars very soon. Predictions are this will happen far quicker than most people realize. Let us not be skeptical about it and look forward to all these power shifts, which may come in the future and hope it will be good for the greater good.

Rocco van Rooyen is an Author on Automotive Solutions. As an Entrepreneur running his own automotive repair shop for the past twenty years and Author on the subject, he is at the forefront to provide solutions to all automotive related problems.