1 Introduction – My Auto Shop Corporation
My Auto Shop is a New Zealand based organization which is operated in automotive industry. My Auto Shop started its venture in 2015. They are providing mechanic services to the customers and as well as to the automobile organization. Their primary services include repairing and maintenance of vehicle on the doorstep of the customer. They are providing online services with the help of mobile application so that customers can book their appointment according to their feasibility and the best mechanic in their locality will approach them according to scheduled appointment. The targeted customers of my auto shop are those who have daily use of vehicles and those who are related to transportation services (Andrew, 2016). The customers preferably do not want to visit the mechanic store in weekend usually after hectic work days. So, they want to maintain and repair the issues of their vehicle at their doorstep. My Auto Shop have identified this need of customers and launch an application whose aim is to provide mechanic services online. It is the innovative breakthrough in the automotive sector of New Zealand introduced by My Auto Shop. The concept of online mechanic services had not implemented before in New Zealand. These online services are not limited to mechanic services but if any customer want to replace the parts of vehicle i.e. tyres, dashboard, steering and others, my auto shop also provides these services to the customer. These offerings and services are the reason of their competitiveness of their organization which distinguish them from other mechanics services providers.
1.1 My Auto Shop’s Business Model
The business model of My Auto Shop is based on the E-commerce because they are providing services mainly through the internet and mobile applications. Many customers are looking to acquire repair and maintenance with the lowest price and with comfort. My Auto Shop has considered all these needs of their customers and their primary concern is to build a relationship of trust between them and customers (Ana, 2017).
1.2 Customer Segment
My Auto shop has segmented their customers into different categories which are mentioned below:
- New Car Owners: The objective of my auto shop with these customer segment is to provide car wash and tuning services at their doorstep.
- Luxury Car Owners: These customers want their vehicles to maintain and clean at every weekend so my auto shop provide this services to these customer segment.
- Sports Car Owners: Sports car owners are very much curious about the performance of their vehicles. My Auto Shop have professional mechanics who only deals with these customers.
- Regular Car Owners: These are the main targeted customers of the venture because more than 60% of the New Zealand population have regular cars. My Auto Shop provide greater satisfaction to these customer through their high quality services (Amos & Samuel, 2019).
1.3 Value Proposition
My Auto Shop, the name of venture has itself deliver what services and offering they are providing to the customers. As a customer, we do not want to invest our time in waiting for repairing and maintenance line for the vehicle. My Auto Shop has considered this problem and they have provided the unique solution to their customer and by providing quality services they have gained the trust of customers across the New Zealand.
1.4 Key Partners
The key partners of My Auto Shop in providing online mechanic services are Google Maps, Google App Store and the mechanic shops in all states of New Zealand (Ana, 2017).
1.5 Key Activities
The key activities of My Auto Shop is to book appointment, assist customers regarding the availability of the mechanic, provide discount if appoint through their mobile application and appoint the most nearby mechanic to provide services to their customers.
1.6 Key Resources
The key resources for My Auto Shop are their marketing experts, human resources staff and the mechanics. These resources are significant for them because they encompass intense knowledge and creativity for the venture.
1.7 Channels
The organization does not have any middle man; it is a B2C business type that will allow the customer to get connected with the customer services of mechanics directly without completing any third party process. This e-commerce business is customer-focused, having all the strategies based on customer demands (Bayan, 2018).
1.8 Customer Relationship
My Auto Shop understands that the strategic relationship with customers can bring the profitability to the organization. They have online customer services agent who are online 24/7 to assist the queries of the customers. Additionally, they use different surveys to gather knowledge about the challenges that have been faced by the customers. In this way, they are intending to enhance the relationships with their customers.
1.9 Cost Structure
The cost structure of my auto shop is concerned with the fixed cost which is mainly the salaries of staffs and cost of mechanical tools (Cuong & Duong, 2020). The variable cost also associated with the cost structure which is related to location of the customers.
1.10 Ethical Issue
My Auto Shop has conducted its business ethically but they have neglected the importance of corporate social responsibility in their business strategy. The vehicles which are used by their mechanics to reach the customers are not environmental friendly and they are leaving carbon footprints in environment (Fabio, 2017). Moreover, they have not made any contribution for the betterment of society yet like they may invest in the education as a charity work. These are some ethical issues that are faced by my auto shop.
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Introduction – Mechanic Online
Online Mechanic Service (OMS) – is an e-commerce startup results in innovation and creative ideas. This organization is all set to serve customers with the best they can. OMS will allow vehicle users to get their vehicles fixed anywhere 24/7. No matter they are at home, in their office or on the roads, it will not only serve the car owners, but people having motor-bikes can also avail of the services. This idea is based on the concept of promoting sustainability, innovation and creativity that are end-up benefiting people (Haroon & Raju, 2019). The company description lists the mission and vision of the organization, which is “To provide 100% honest repair, quality workmanship and exceptional services” with the commitment of serving customers at any cost.
This organization is willing to serve the customers with the best possible services; it is an online business that is planned to help people out when they are stuck on the roads with their vehicles. The reason behind using the e-commerce business model for this project is, it ensures access to the customers 24/7. Flexibility allows increasing the service quality, and most of the customers are satisfied with that. Cost-saving is one huge benefit of this business, as it allows to manage the business from anywhere (María, Ferrero, & Ugidos, 2019).
1.1 Value Proposition
- Business goals: offering reliable, sustainable and honest repair services and help to the customers that are just a click away from their hone (Atsushi & Onosato, 2018). The key objective is to develop a reputation with the customers and community in terms of customer care and service quality.
- Commitment with the customers: The organization commits to serving the customers at any time, even if they are in the middle of nowhere. Each mechanic will treat the customer’s car with the highest regard to ensure the satisfaction of the customers. They will be asked to be polite and cooperative with the people who ask for their help (Ahmad, Danish, Ali, Shahid, & Nadeem, 2019).
1.2 Industry:
This organization belongs to the automotive industry, which is considered as an ever-green industry because owing vehicles is almost a necessity of people. One who does not own a car have a motorbike; at least, around 700 new bikes hit the roads every day (Ayub, 2017). Thus, this business is the need of the hour; the more vehicles on the roads, the more need for such a mechanic.
1.3 Product Services
The company serves the customers with “vehicle repairing service – anywhere at any time.”
Technical specifications:
The services offered by the company are truly advance; for this purpose, the Facebook page will be made, and WhatsApp will also, it will allow customers to get connected with the mechanic nearby (Mojtaba, Bozorgi-Amiri, & Yousefi-Babadi, 2016).
Competitive advantage:
One thing which differentiates this service from the other is, getting connected with the technician without making long phone calls and requesting the mechanic to visit the customer on the road. This online service will not only help people to get their vehicle fixed in the paki where no other mechanic is available, but it will also help people to earn some money from doing this part-time service. Customer satisfaction will be increased due to the efficacy of the service.
Level of quality:
As per the commitment of the company and its mission, customer satisfaction holds some significant place; it is important to ensure 100% quality of service. From the 3 levels of quality, the aspirational quality will be assured for the customers by providing above expectations services to the customers (Petar & Beric, 2018).
1.4 Features and benefits
These services help people to get connected with the nearest mechanic at the time of need. These mechanics will enlist themselves in OMS records and reach the place on the call of customers.
1.5 Customer Segment
Demographic Profile
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Age
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20-55
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Gender
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Male/female
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Location
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Australia
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Income level
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Above 1500 AUD
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Social class and occupation
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Middle and high class/ any occupation
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Education
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Basic Education to Masters Level
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Demographic Profile
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Industry
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This business is related to the automotive industry, rather than manufacturing it falls in the vehicle repairing category
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Location
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In Australia
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Size of firm
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SME
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Quality/ technology and price preferences
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This business has the mission to serve with the best service quality and make people aware of the innovation that can change their lifestyle. The organization is using technology and innovation in order to maintain the quality of service. This price will be kept as minimal as possible, although to serve the mechanics as well their expenses for reaching to the customer. Other than that, the actual amount for the repair will be charged. The customer will be able to pay directly to the technician or to pay the amount with the help of the application (Seeham, 2018).
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Foreign Market Analysis: in order to adopt an effective and efficient business strategy to increase their competitive advantage over rivals, the management will also analyze the strategies of similar foreign countries so that they can know about the unique business practices (Reto, 2017).
Environment Analysis: the management of the business will also do the market analysis, in accordance with, they will evaluate the places that are highly used by the people or the other areas in which there are no garages (Seeham, 2018). By having insight from it, the management will give priority to those places.
2 Business Canvas Model
Lean Canvas
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Designed for
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Designed by
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Date
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Problem
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Solution
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Unique Value Preposition
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Unfair Advantage
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Customer Segments
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The problems that is facing by the customers, for which this project is made are as follows:
1: Lack of Mechanics at every road
2: Vehicle Problems and the poor knowledge of people regarding fixing the vehicle
3: In the well developed areas of Australia, people have to go far to the garage to fix their vehicles.
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The solutions of the problems faced by the customers are as follows:
1: People must be provided with the facility of mechanics everywhere, any time.
2: There must be enough mechanics who serve the people instantly when they need it.
3: the online business will be started through which people will be able to book the mechanic to repair their vehicles.
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By having the facility of booking mechanic anywhere and anytime, people can increase the ease of their days traveling to workplaces.
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This is a unique business idea; there is no other organization that gives the facility of online mechanics. By having eased, customers will surely utilize this service.
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There will no specifically target market; all the people who have the vehicle will be allowed to use this service and will be equally valued by the mechanics.
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Existing Alternatives
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Key Metrices
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High-Level Concept
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Channels
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Early Adopters
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The concerned problems are solved by the mechanics who have the shops on the roads. People have to visit those shops and handover their vehicles to them. People have to ask for aid to their homes or hire the uber or use other public transport when there is no mechanic nearby, and they have to reach any place. There is no concept of online mechanics right now (Wise, 2017).
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There will be a team of online mechanics, from which the people can access through Facebook or WhatsApp at the hour of need. They have to dial a number and book a mechanic who will be available in the minimum possible time to fix their vehicle.
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A Facebook page will be made from the name of mechanics, from where the people can but the online mechanics.
A WhatsApp will be made with the customized number, from where the customers can directly hire the mechanic.
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Facebook and WhatsApp will be the channels through which the people can contact to the mechanics. There will be the official group on Facebook, and the direct contact through WhatsApp.
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The characteristics of the early adopters are as follows:
-The people who want to fix their vehicles in a hurry
-Upper-class people who like online services
-People who use to travel within the city on a daily basis.
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Cost Structure
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Revenue Structure
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Fixed Cost: Salaries of mechanics, cost of tools and vehicles
Variable Cost: Conveyance allowance of mechanics
Distribution Cost: Nill
People: Customers and Mechanic
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Sources of Revenues: Huge number of customers will end up generating more revenues
Revenue Model: E-Commerce
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|
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3 Ethical Consideration
Unlike My Auto Shop, Mechanics Online prefer sustainability of the environment in their business strategy. For this purpose, Mechanics online will buy electric motor bikes for their mechanics staff to reach at customer doorstep without leaving carbon footprints behind. This strategy will help the venture to bring innovation in the industry by adopting sustainable practices and become a corporate social responsible organization.
4 Conclusion
Starting a new venture requires a lot of time and an active mind to ensure a good start of business; it is difficult to earn massive profits in the beginning, but using the appropriate strategies can help in assuring the success of the business. OMS is one of its kind business that aims to bring something new in the industry and to assure customer satisfaction by using innovation and creativity. This application will help people to get grocery no matter where they are and what time it is. This paper precisely discusses the marketing as well as the financial plan of the business along with projecting the profit in upcoming years on base of investments done in that. To ensure the right measures and strategies are selected for the business, detailed market research has been completed that provides some effective information about the customers and their interests. To conclude, using the right promotional strategies and developing an effective marketing plan would help in making this business more widespread among customers.
5 Appendix 1: Startup Expense
According to the above projections, investment in the company is suitable. This investment will be acquired to purchase the equipment and to fulfill the operating expenses. Below are some projections on the initial level:
START-UP FUNDING
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Start-up Expenses to Fund
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30,000
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Start-up Assets to Fund
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50,000
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TOTAL FUNDING REQUIRED
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80,000
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Assets
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Non-cash Assets from Start-up
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500
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Cash Requirements from Start-up
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5250
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Additional Cash Raised
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$0
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Cash Balance on Starting Date
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5250
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TOTAL ASSETS
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5750
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Liabilities And Capital
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Liabilities
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Current Borrowing
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0
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Long-Term Liabilities
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0
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Accounts Payable (Outstanding Bills)
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1,000
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Other Current Liabilities (Interest-Free)
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0
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TOTAL LIABILITIES
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1,000
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Capital
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Planned Investment
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Investor 1
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10000
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Investor 2
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10600
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Other
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$0
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Additional Investment Requirement
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$0
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TOTAL PLANNED INVESTMENT
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20600
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Loss at Start-up (Start-up Expenses)
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(6100)
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TOTAL CAPITAL
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15650
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TOTAL CAPITAL AND LIABILITIES
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5750
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Total Funding
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80000
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6 Appendix 2: 12- Month profit & loss projection
Projected Income Statement
Profit & loss projection
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SALES
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|
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Local Shipments
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359
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15
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5385
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Nationwide Shipments
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539
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20
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10780
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Net Sales
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|
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16,165
|
|
|
|
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Direct Cost - Rider Incorporated
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|
|
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Local Shipments
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359
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10
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3590
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Nationwide Shipments
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539
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12
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6468
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The net cost of sales
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|
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26223
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Expenses
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|
|
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Chief executive officer
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1
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5000
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5000
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Marketing expense
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1
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375
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375
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Auto Rent
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10
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400
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4000
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Dispatchers
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12
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250
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3000
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Manager Operations
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2
|
500
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1000
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Head of operations
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1
|
1500
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1500
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Head of sales & marketing
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1
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1500
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1500
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Accountant
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4
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300
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1200
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Customer Support
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6
|
200
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1200
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Sales
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6
|
400
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2400
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Promotional marketing
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1
|
500
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500
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Social Media Expense (Facebook + WhatsApp)
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|
|
400
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Internet
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1
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200
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200
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TOTAL MONTHLY EXPENSES
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|
|
22275
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MONTHLY NET PROFIT
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|
|
3950
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7 References
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Amos, E., & Samuel, O. (2019). The effect of transformational leadership on intention to quit through perceived organisational support, organisational justice and trust. South African Journal of Economic and Management Sciences, 22(1), 1-8.
Ana, B. (2017). Impact of employees' training programmes on job satisfaction. Current science, 112(7), 1340-1345.
Andrew, S. (2016). The role of digital and social media marketing in consumer behavior. Current Opinion in Psychology, 17-21.
Atsushi, T., & Onosato, M. (2018). Effect of continuous improvement on the reporting quality of project management information system for project management success. International Journal of Information Technology and Computer Science (IJITCS) 10, no. 1, 1-15.
Ayub, I. (2017, 11 17). 700 new motorbikes hit city roads every day, multiply traffic problems. Retrieved from dawn.com: https://www.dawn.com/news/1370976
Bayan, F. (2018). Application of path-goal leadership theory and learning theory in a learning organization. Journal of Applied Business Research (JABR), 13-22.
Cuong, N., & Duong, A. (2020). The Impact of Training and Development, Job Satisfaction and Job Performance on Young Employee Retention. International Journal of Future Generation Communication and Networking, 13(3), 373-386.
Fabio, N. (2017). Project Selection Frameworks and Methodologies for Reducing Risks in Project Portfolio Management. In Project Portfolio Management Strategies for Effective Organizational Operations, 245-263.
Haroon, M., & Raju, V. (2019). The Impact of Training and Development on Intrapreneurial Behavior. Journal of Innovation and Management, 4(4), 81-89.
María, S., Ferrero, A., & Ugidos, A. (2019). Time management: skills to learn and put into practice. Education+ Training , 736-894.
Mojtaba, S., Bozorgi-Amiri, A., & Yousefi-Babadi, A. (2016). Project manager selection based on project manager competency model: PCA–MCDM Approach. Journal of Project Management, 1(1), 7-20.
Petar, J., & Beric, I. (2018). Analysis of the available project management methodologies. Management: Journal of Sustainable Business and Management Solutions in Emerging Economies 23, no. 3, 1-13.
Reto, F. (2017). Elements of strategic social media marketing: A holistic framework. Journal of Business Research 70, 126.
Seeham, Y. (2018). Firm-Specific Determinants of Capital Structure: Implication of Pecking Order Theory in Automotive Industry of Pakistan. Abasyn Journal of Social Sciences , 1-9.
Wise, M. (2017). Examining project learning, project management competencies, and project efficiency in project-based firms (PBFs). International Journal of Managing Projects in Business, 3434-3565.