Competitive Automobile Industry and the Client’s Requirements
Competitive automobile industry and the client’s requirements
The automotive companies need to implement, and maintain high standards of Total Quality Management practices to match up to the competitive automobile industry and the client’s requirements, this has been considered as infrastructural strategy in the operations management research fields.
Due to the competition, the clients demand for quality, hence making it one of the biggest factors of consideration for company’s survival in the always expanding global market, quality is then important in the future economic benefits of any company. This strategy has been applied by many worlds’ leading automobile manufacturers to gain competitive advantage over their business rivals.
In Malaysia, since the inception of the ASEAN Free Trade Area in 2005, there has been impact in their car manufacturing industry, prior to this agreement; the car industry was protected by the central government through such systems as refunds schemes, tariffs and investment controls giving the local companies a competitive advantage over the other over- seas rivals. According to Thomas (2010), this has been observed by critics to be a positive move in driving the regional assembly and manufacturing integration and cost competitiveness in the larger ASEAN countries. By 2010 Malaysia car industry was far behind the Thailand’s.
The government adopted policies to develop local automotive industry and encourage vehicles to be assembled locally: These include manufacturing vehicle parts locally imposing imports taxes and attracting a tariff system on imports. Another was that, all the dealers and distributors to get import licenses that had to be re-newed in every six months, (Song Y, et al) Though others companies assembled other brands of automobiles, there was an upward surge in the production of many makes and models, leading to lower prices of some parts, hence a challenge to the manufacturers to achieve their economies of
The automotive companies need to implement, and maintain high standards of Total Quality Management practices to match up to the competitive automobile industry and the client’s requirements, this has been considered as infrastructural strategy in the operations management research fields.
Due to the competition, the clients demand for quality, hence making it one of the biggest factors of consideration for company’s survival in the always expanding global market, quality is then important in the future economic benefits of any company. This strategy has been applied by many worlds’ leading automobile manufacturers to gain competitive advantage over their business rivals.
In Malaysia, since the inception of the ASEAN Free Trade Area in 2005, there has been impact in their car manufacturing industry, prior to this agreement; the car industry was protected by the central government through such systems as refunds schemes, tariffs and investment controls giving the local companies a competitive advantage over the other over- seas rivals. According to Thomas (2010), this has been observed by critics to be a positive move in driving the regional assembly and manufacturing integration and cost competitiveness in the larger ASEAN countries. By 2010 Malaysia car industry was far behind the Thailand’s.
The government adopted policies to develop local automotive industry and encourage vehicles to be assembled locally: These include manufacturing vehicle parts locally imposing imports taxes and attracting a tariff system on imports. Another was that, all the dealers and distributors to get import licenses that had to be re-newed in every six months, (Song Y, et al) Though others companies assembled other brands of automobiles, there was an upward surge in the production of many makes and models, leading to lower prices of some parts, hence a challenge to the manufacturers to achieve their economies of