Strategies in an Era of Global Competition
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Strategies in an era of global competition
Deakin University, Geelong, Victoria, Australia
Keywords Tariffs, Subcontracting, Case studies, Globalization Abstract The Australian government welcomed globalisation and led the way with tariff reductions, claiming that many local manufacturers were inefficient and inward looking as a result of over protection. This paper reports on a series of interviews conducted in companies belonging to the (small) electrical appliances and household kitchenware industries, which both face fierce competition from imported goods. The objectives were to find out what business and manufacturing strategies have sustained them in the new trade environment. Six distinct strategies were identified, although a mix is common. There has been a real push to increase productivity, but it is not enough on its own to enable a firm to defend its domestic market against cheap imports. The main impact of globalisation has been a move to replace local sources of production with others located offshore. Typically, these are independent suppliers in China operating under contract manufacturing agreements.
Strategies in an era of global competition 997
Geoff Buxey
Introduction For most of the twentieth century, Australian industry sheltered behind high duties and quotas on imports, although at the outset countries such as the USA and Sweden had greater levels of protectionism. A selection of representative average tariff rates for manufactured goods, expressed as a percentage of landed cost, displays the trend (Little et al., 1970) (see Table I). Australia 's tariff barriers were amongst the highest of any industrialised nation, with the exception of New Zealand. Successive governments used such measures to encourage foreign investment in local production facilities, and, at the same time, generate more immigration. While this worked,
Strategies in an era of global competition
Deakin University, Geelong, Victoria, Australia
Keywords Tariffs, Subcontracting, Case studies, Globalization Abstract The Australian government welcomed globalisation and led the way with tariff reductions, claiming that many local manufacturers were inefficient and inward looking as a result of over protection. This paper reports on a series of interviews conducted in companies belonging to the (small) electrical appliances and household kitchenware industries, which both face fierce competition from imported goods. The objectives were to find out what business and manufacturing strategies have sustained them in the new trade environment. Six distinct strategies were identified, although a mix is common. There has been a real push to increase productivity, but it is not enough on its own to enable a firm to defend its domestic market against cheap imports. The main impact of globalisation has been a move to replace local sources of production with others located offshore. Typically, these are independent suppliers in China operating under contract manufacturing agreements.
Strategies in an era of global competition 997
Geoff Buxey
Introduction For most of the twentieth century, Australian industry sheltered behind high duties and quotas on imports, although at the outset countries such as the USA and Sweden had greater levels of protectionism. A selection of representative average tariff rates for manufactured goods, expressed as a percentage of landed cost, displays the trend (Little et al., 1970) (see Table I). Australia 's tariff barriers were amongst the highest of any industrialised nation, with the exception of New Zealand. Successive governments used such measures to encourage foreign investment in local production facilities, and, at the same time, generate more immigration. While this worked,
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