A1 Mobilized Oil Change and Tire Services - Paper Example

2021-07-30 10:01:33
7 pages
1739 words
University/College: 
Boston College
Type of paper: 
Business plan
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Company summary.A1 motorized oil change and car services is a private business offering solutions in Comprehensive car care, where we change the engine oil, replace the oil filters and go a step further to inspect the engine for any leaks or malfunctions. Aside from oil servicing, the company will offer tire solutions to clients and this will include but not limited to offering new tires of various recognized brands, puncture repairs, wheel balancing, pressure balancing, rims installation and selling and tire installation. The business is situated in Ashland, Oregon.

Market Analysis.Many people place great value in the general outlook and smooth functioning of their cars. Car lubrication places a vital role in ensuring a car operates smoothly without knocking.it is, therefore, necessary to frequently check, replace and maintain smooth oil flow within the engine. Over 50% of the people in Ashland have at least one car in their household and 63.55% use a car as means of transport to work (Muller, 2014).

With the median household income being $63,356 per annum, it means that majority of the population can afford to pay for the services offered.6.7% of all light trucks, SUV's and cars are manufactured in Tennessee with an average of 800,000 vehicles in 2016.automotive manufacturing is one of Oregons income generator with over 22.9billion in foreign investments. This stats go to show that Oregons auto industry is booming with plenty of markets. Therefore, Ashland is set to gain plenty of customers from the booming auto industry.

According to a report ran by Esri as of 2016, there are 22,598 people that live in Ashland. The market that Sparkle and Shine will be examining are those individuals who are between the ages of 25 and 75 years of age. This accounts for 60.8% of the Ashland population and translates into 13,740 individuals. Also, the average household income is $68,684. This is good for A1perpetual growth because the higher the average household income correlates to more money being spent on auto services and tire services.

Market Potential

Total market potential will be based on the population of Ashland, target market, and a number of forecasted vehicles in Ashland. The total market potential does not include tourists during the tourist season in Ashland. Furthermore, 84% of all households own a car in the United States so that is the number used in computing total market potential (google).

Sales Potential

Table 1.2

Ashland, Oregon Ashland, Oregon Total Market Potential 4,212,556

Percentage rate of using auto services 50%

Ashland, Oregon Sales Potential: 2106278

Sales Forecast

Table 1.3

Sales potential 2106278

Direct competition 70%

Average market share 10%

A1 market share 5%

Sparkle and Shine sales forecast 105313.9

Target market.For the business to boom, it requires repetitive or loyal customers for constant income generation. With the majority of Ashland populations being middle-aged people the target market will be:

Business owners - especially new car owners who require some guidance to good services.

Retired people- they have a lot of free time to take their cars for service any time of the week since they are not limited by the employment factor.

Car dealerships-car dealerships are always willing to spend money in order to ensure their cars are in perfect condition and appealing to the customers. They will, therefore, be a vital client in ensuring that the business is constantly generating income.

Logistic companies-haulage companies and transport service industry offer a good percentage of the market as the delivery trucks require frequent servicing to prevent breakdowns which may inconvenience their business.

Truckers and long distance travellers will require a reliable and affordable service of their vehicles and a1 is just the place to be.

Strategy and implementation summary.

In order to attract loyal clients the business needs to maintain a competitive edge over other related businesses.the sales strategy for the business will be through;

ensuring consistency in service and product quality

offering discounts to some of-of the products and also coming up with specific days where the services are offered at a discount.

Promotions through the media, local newspapers.

Offering online appointments where our clients dont need to physically come to the business premises to book appointments.

Creating an app where our loyal clients can subscribe and in case of any emergencies, the owner can alert the specialists and also give them directions to their location.the app can also help in the further interaction between the team and the clients through queries, suggestions or recommendations (Muller, 2014)

Offering door-to-door services.in this case, the client doesnt need to come to the business premises, only the technicians and specialists will go to the car owners home and do the services from there.

Offering complimentary services such as wheel balancing, supplying new tires of various known brands(offering a variety).

Supply of custom made rims, bolts, and nuts.

The A1 strategic position is based on evaluating the following factors:

Industry Trends and Opportunities

Customer Needs

The Competitive Environment

Our Strengths

Risks analysis

Industry trends and opportunities

The auto mechanics and servicing industry have grown drastically over the last half a decade. Individual businesses have increased the demand for good services thus raising the income and profit generated. As car ages, the need for frequent servicing increases, because routine check-ups and repair are even more necessary in order for the car to function properly. This has also profoundly supported the business.

Demand for cars has also increased more, and more people are buying cars every day. Cars have become a necessity to every household form the convenience it offers. This has greatly improved business. Therefore, based on this trend, the industry is said to grow spontaneously over the coming years. And each year, better and more efficient methods of ensuring proper servicing are emerging. This way, lower operational costs and improve trends.

Customer needs

Customer satisfaction is essential for steady growth of a business.it is a very important factor and A1 will constantly keep on improving its service delivery in order to ensure the customers remain loyal.A1 recognizes that in order to win our customers heart we have to be versatile, dynamic in offering high standard customer services.the companys main target will be the citizens of Ashland who own an automobile, which is a large target market, but a justifiable one. All ages of people that can drive the search for such services because of their convenience. The citizens of Ashland need a reliable tire and engine services that are efficient, non-self-service, and environmentally conscious. A1 motorized oil change and car services will provide all of this and will be a desirable place to get your car engine and tires checked (Taylor, 2015).

Strength

A1 business is a field generally regarded as a blue collar job. This gives it an advantage to other service delivery outlets. The market of auto-services is not well exploited, especially so in Ashland, Oregon. For the company to fully exploit the market, it will rely on our strengths which include;

Strong customer service skills to maintain good rapport with our clients.

Strong communication skills for easy translation of complex technical matters to simpler terms that the client can easily understand.

Problem-solving skills. This involves quick analysis of arising matters and coming up with viable relevant solutions.

A solid work ethics. This involves honesty, accountability, credibility, and efficiency.

Leadership- savvy leadership skills that will ensure the workers and the company, in general, is on toes.

Modern/up to date technology; since vehicles and technology are constantly evolving, A1 guarantees up to date technology in all our services with an effort of keeping up with the current trends.

Expert services and professionalism delivered through A1s team of experts and specialists to ensure customer satisfaction

Risk Analysis

The largest risk for A1 will be the emergence of new competitors into the market. Some of the new players in the business are which are bound to be potential threats are electric cars. With the increase in electric cars production, government incentives on electric cars and the going green initiatives, internal combustion engines are literally headed to their extinction. The exit on the internal combustion engine will come as a big blow to the oil and lubricants business. This is due to the fact that internal combustion engine relies heavily on oil and lubricants for their proper functioning (Taylor, 2015).

Competition from other established service providers such as Bridgestone tires, Ashland service centre will be a huge risk to the growth of the business.

Management strategy.Proper management is vital for the smooth operation of the company/business and therefore a personnel plan is vital.

Based on statistics, business will be more on weekends than weekdays when most people are home and therefore will rely on temporary and part-time help to supplement the work demand.

Full-time specialists and technicians will be hired to offer unwarranted services to the clients.

An administrative assistant will be needed to manage the paperworks and process orders

An IT expert to monitor the apps and other network related services.

Cleaners.

Barriers to Entry.Capital requirements.

The capital requirements needed for opening an auto dealing business are moderate.however several factors such as the location of the business, municipal regulations, the kind of equipment to be bought might lead to an increase in the capital requirements. For instance, the purchase of a good state of the art toolset would cost between 10,000-20000 dollars. If the business will have to displace an existing business a goodwill of substantial amount will be required (Marusyk and Phoenix, 2015).

Technological Factors

With the improvement of technology opening an auto shop will need state of the art technological equipment. This is especially useful in quality of customer service delivery. With the ever-changing technology, the business will need to upgrade every once in a while to keep up with the ever-growing competition (Marusyk and Phenix, 2015).

Regulatory Issues

Municipal regulations such as county taxes, operation fees, insurance fees and other municipal regulation fees will act as a barrier if not well taken care of.

Environmental regulations which are set to ensure no natural resources are misused, proper damping and prevention of harmful contaminants into the atmosphere.

Supply and Distribution.Due to various customer preferences, distribution and supply will be challenging to get the various products. A wide range of products will be essential in order to meet the customer needs. Therefore a regular supply of tires from different manufacturers, the supply of wide range of filters from different manufacturers and suppliers of oil in large volume.References

Marusyk, R. W., & Phenix, H. (2015). U.S. Patent Application No. 14/864,440.Muller, F., & Winter, P. (2014). U.S. Patent Application No. 10/996,759.Taylor, R. (2015). U.S. Patent Application No. 14/671,660.

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