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Taratap is a medium, family owned organization situated in the inward rural areas of Melbourne. It has been working at its present area from 1983 to date. It specializes in designing, assembling and manufacturing of automotive products and selling of related accessories. It has been Melbourne’s household name for SUVs such as 4WDs, recreational vehicles, light truck pickup and other utilities. With an aggregate number of 200 laborers, the organization recorded a net benefit of $21.2 million on offers of approximately $141 million in a year. Deals have become reliably at a standard compound rate of 10.9% in the course of recent years 12 years. It has no debt. Sales and profits have held up well following the end of the mining construction boom in Australia, as most sales have been to non-mining users and export. Export sales currently run at about 25% of total sales, mostly in South-East Asia.
- To deliver quality products in an environmentally friendly manner, observing the global standards of carbon and greenhouse emissions
- To be a world class innovator in designing, manufacturing and assembling or automotive and related accessories
The company wants to grow its deals and manufacturing exercises in worldwide markets, and Kenya has been considered as a conceivable new market. It trusts that the physically requesting states of the zone and across East Africa present a gap in the automotive that resemble the situation in Australia. The automotive items Taratap has produced in Australia ought to accordingly be exceptionally applicable in the identified region and neighboring developing nations in East Africa. Also, no other Australian company currently sells similar products in this market. The following is the business plan for the Kenyan market access for Taratap automotive parts business
A globalized car industry was realized during the first quarter of the nineteen century, when overseas facilities were constructed with the significant merging of big automobile manufacturers (BERA 2014). Similarly, the expansion of the industry was further accelerated by the fast industrialization and the globalization of trade that made it possible for worldwide global automobile distribution systems. Globalization of the industry created competition among the vehicle manufacturers with the rising organization utilizing the innovative technologies of the earliest manufacturers such as the US in instituting productive methods, enhancing production and augmenting competition in the automotive sector. United States remain the initial manufacturers of the SUVs, light trucks and their utilities, followed by Japan, who utilized the innovative US production methods during the oil embargo that enhanced automotive globalization in 1973.
Dynamics of the global automotive market and consolidation in the industry are the key trends that are notable in the process of examining the automotive industry in the global arena (Lee 2005, p. 29). Regarding worldwide market dynamics, the leading largest manufacturers of vehicles such as 4WDs are continuing to capitalize their business into the production of such automobiles and related utilities in emerging markets so that production cost are reduced significantly. The recent emerging markets for the light trucks and SUVs are markets in Malaysia, China, Latin America, and other marketplaces in Africa. Dynamics in the automotive market are also marked by merging and partnerships between several automakers as seen by the merging of production technologies by the Japanese vehicle manufacturers (UKTI 2014). The observed trend can be described as the attempt to augment the global market by the world automakers. Automotive industry consolidation has led to more global competition between leading and emerging manufacturers as they try to find a strategic position in overseas markets. The recent trend has been observed in the manufacture of light trucks and four wheeled drive vehicles as the consumer demand has shifted over the years from merely possessing an auto to exclusive automobile lifestyle ownership (BERA 2014). Technology also has opened up the industry with quality being the determining factor in the market.
Taratap Pty Ltd has chosen a viable country to be Kenya, an East African country that has a fast-growing economy that is directly proportional to the demand of automotive products. Other than government’s support for foreign investors, the market is characterized by only four manufacturers while others are dealers of second-hand vehicles. SUVs vehicles find a place in Kenya with the demand for the cars mainly to support tourism sector, the leading economic activity in the country. It is because of the major tourist attraction sites are located in areas with rough and hilly terrains where 4WDs and SUVs are appropriate vehicles….