Business Skills of Dars Ltd
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6477 Downloads I Published: 08 Feb ,2017
The name of the business is Dars Ltd which is mainly engaged in the business of selling commercial vehicles. These vehicles include cars and other machines under automotive sector. Company offers high quality and superior vehicle products for the customers (Lewis Reynolds, and Lancaster, 2007). The business has two subsidiary services also which includes automotive repairing and valet services for its customers. Following business has been selected because vehicles are the most essential thing for an individual in order to perform day to day operations.
The automobile industry is of dynamic nature. At constant intervals new types of things and trends are being emerged. Among them the latest trend is car wash and valet services. These things are mode of attraction for the car passengers. According to the market scanned it has been identified that customers are quite fascinated about these kind of services. They prefer to use the services because it offers them the chance to get their car clean in more effective manner.
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Reason for selecting location: UK automotive industry is producing effective results. Further in UK it has been seen that demand for repairing and valet services have risen significantly. It is due to increase in the sale of the cars within UK automobile industry.
The major activities that will be commenced by business will be including car body and mechanical repairs. Washing and polishing of cars along with tuning auto for used cars will be done. Other than these service areas, the other major operations will be including selling of cars.
The main aim of company with its mission is to provide excellent automotive care and services to all of our customers irrespective of whether they need to buy used cars, require major body work or get a simple wash and wax of their own cars.
Strong services for the customers who wants basic advice on car maintenance, information about our services, discount offers on future repairs and maintenance and many other operations related to automobile industry.
The following trends are prevailing in the automotive industry
Increasing fuel prices – As fuel prices are rising, there is a high concern for the environment and due to which more energy efficient vehicles are increasing in demand.
Weak spending capacity – People are holding their cars longer as they are tight on their financial budget (Automotive Industry Analysis - Cost & Trends, 2015).
Less preference to used cars – Growth in the used car sales are lower than the new car sales.
High demand for auto repair and valet services – Auto repair will continue to play a big role in the industry. There is a high demand for specialized parts and for repairing the hybrid & electric cars. There is a very high demand for car wash services also. The fuel stations are giving these services free for the customers in order to achieve competitive advantages.
Low availability for hybrid car repair shops – At present there is low supply of shops which are capable of fixing hybrid cards.
The Global automotive industry consists of large network of companies which are focused on manufacturing, developing, innovations, supplying, distributing etc. It is a very large scale to handle and a leading driver of economic growth. From the above forecast it can be estimated that the sales volume of the industry will go on higher level in the near future (Automotive Industry Analysis - Cost & Trends, 2015). The volume of sales and value of manufacturing is increasing significantly day by day. Hence from this trend it can be interpreted that the new business are having great opportunities to achieve success. This is because if sales of commercial vehicles will increase then demand for services like car wash and sales valet will also increase. People will come to avail such kind of services in high number.
The selection of an appropriate target market is essential for a business. The target market for this new business is middle class customers who are capable of affording vehicles. This target group has been selected because the vehicles of the company are specifically designed for middle class consumers so that they can afford it. Further they are also offering services like automatic repairing and valet (Allio and Randall, 2010). This will be added advantage for them and it will attract them towards purchasing the product. However people of high income class can also buy these services.
The services are segmented on the basis of demographic and geographic characteristics. The business is mainly targeted at middle class consumers who can afford the services provided by the company (Bangs, 2002). Moreover, the customers will be segmented by the type of cars they are carrying irrespective of small hatchbacks to a luxury sedan or a heavy duty SUV's. Along with this perspective, the geographic area will be considered as well. The company have to open its outlets in the manner that it can cover the maximum market area of the city (Wilso and Gilligan, 2012).
For the new car owners, they might not be using company garage repairs service, but they will bring there to wash and valet services. The primary motive behind providing such services to these customers is to promote regular use to wash and valet service that results to recurring serving opportunities by the firm (Barringer, 2012). As soon as the warranty over cars for services runs out, the objective of entity will be to sell excellent service at competitive price. On the basis of geographic segmentation, it has been observed that US is the biggest market which is followed by UK. In the initial stage, company is planning to cover the area of UK that has quite large market for automobile sector.
The new services is targeted at customers of all age groups. Discounts will be given to first 20 customers who will reserve their orders for repair and car wash. It is expected that this will help in attracting the customers towards the services.
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Conclusion and justification
From the following report, it has been concluded that car wash is the latest trend in the automotive industry. In order to gain customers for the new business, Dars Ltd is required to convert its strengths into its opportunities. It has been observed that car washes services are becoming highly popular as people wants to hold their cars longer and desires to maintain their cars in a good condition (Sahlman, 2008). Therefore Dars Ltd may include full service, exterior or stationary automatic car washes into the business. The originally of the business is that it also offers car wash services which is the USP (Unique selling point) of the new business. The business idea is justified and it can be applied in the real business scenario. In order to provide justification and feasibility of implementing the following business idea, there are special services for all the luxury cars owners that proves our company to be special from others. It can be concluded that new business has many opportunities. It is expected that this will aid them in achieving growth and development for the Das Auto. Apart from that business conditions in UK are favourable for the project.
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