Opel AU case study
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 company’s fist show room opened in Australia, with a network of 20 dealers nationally and an ambitious sales target of 15,000 by 2015(Dowling 2013). However, Opel did not even get a fraction of that with 541 cars sold in the latter half of 2012 and 989 cars sold in the first half of 2013(O’Brien 2013). The Astra----Opel’s little fancy car is a representative of the company’s segment market----well designed hatchbacks equipped with powerful engines and sport style. The nice Astra also had a nice price of AUD 29,800(Tschampa 2013), at the same time the prices of most rivals was dipping to close AUD 20,000(Tschampa 2013). Failed to in the intensive price war, Opel finally abandoned Australian arm in August 2012 left 20 heavily invested Australian dealers behind. The company is unlikely return to Australia in the name of Opel but it is still work with Holden on the potential to sale some cars with Holden badges(Park 2013).
Critical analysis of the external environment using the PESTLE framework
The mis-analysis of the external environment should be responsible for Opel’s failure.
Economically and socially speaking, the arrive of Opel was doomed from the beginning. The auto market of Australia changed considerably within past 10
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 company’s fist show room opened in Australia, with a network of 20 dealers nationally and an ambitious sales target of 15,000 by 2015(Dowling 2013). However, Opel did not even get a fraction of that with 541 cars sold in the latter half of 2012 and 989 cars sold in the first half of 2013(O’Brien 2013). The Astra----Opel’s little fancy car is a representative of the company’s segment market----well designed hatchbacks equipped with powerful engines and sport style. The nice Astra also had a nice price of AUD 29,800(Tschampa 2013), at the same time the prices of most rivals was dipping to close AUD 20,000(Tschampa 2013). Failed to in the intensive price war, Opel finally abandoned Australian arm in August 2012 left 20 heavily invested Australian dealers behind. The company is unlikely return to Australia in the name of Opel but it is still work with Holden on the potential to sale some cars with Holden badges(Park 2013).
Critical analysis of the external environment using the PESTLE framework
The mis-analysis of the external environment should be responsible for Opel’s failure.
Economically and socially speaking, the arrive of Opel was doomed from the beginning. The auto market of Australia changed considerably within past 10