Go Auto Services Swot Analysis

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Executive Summary

         The purpose of this analysis is to assist On the Go Auto Services, a mobile auto repair shop, with their start-up business plan and strategy. There are three sets of data in this report; a chart outlining car sales in Canada, a market research report on oil change services, and a table showing the average and median household income in Sudbury. Rationale and explanations as to why these data sets are important to the business, and a breakdown of the market they will potentially serve are included. This report also outlines the business’s strengths, weaknesses, threats and opportunities based on the current business environment.
        It is anticipated that this report and analysis will serve as beneficial to On the Go Auto Services as it pertains to the creation and development of their business plan as well as their successful introduction into owning and operating their mobile auto repair shop.

 Table of Contents

Problem Definition        1

SWOT Analysis        2

Strengths        2

Weaknesses        3

Opportunities        4

Threats        5

Data Set Collection        6

Data Set Analysis        6

Market Analysis        8

Exhibits        11

Bibliography        13

Problem Definition

        On the Go Auto Services is faced with the challenge of entering a currently unpenetrated and unexplored market in the area they wish to serve. This may cause difficulties for the company when it comes to market research and the gathering of secondary data. The purpose of this research is to help On the Go Auto Services establish an effective business strategy and begin creating a successful business plan.    

SWOT Analysis

Strengths

• On-site repairs and maintenance: On the Go Auto Services expert mechanics go to the vehicles location to perform many different types of auto repairs and maintenance. This differentiates the business from other auto repair businesses in the area.  
• Reduces customer stress: Because the On the Go Auto Services mechanics go directly to the location of the car, the driver’s anxiety and stress is reduced about having to bring the car to a shop in order for it to be fixed. This is a much safer option for their customers and will give them peace of mind.
• No direct competition in the area: There are currently no “mobile mechanics” operating in the Greater Sudbury Area, which gives On the Go Auto Services the chance to gain full market share and attract plenty of customers.
• Experienced mechanics: The company has plans of hiring nothing but fully licensed and highly experienced mechanics that are passionate about the automobile industry. This will create a brand that is sophisticated and trusted.  
• Advanced technology and products: On the Go Auto Services is avid about having state-of-the-art technology and products to ensure effective and above-average service in order to build trust and loyalty from their consumers.

Weaknesses

• High operating/transportation cost: The equipment required to start-up On the Go Auto Services is quite expensive. The company requires multiple trailers equipped with hydraulic lifters, air compressors, battery chargers, strut compressors, etc. which will be quite pricy. They also require a transportation budget to travel to the location of the car that needs repairing. On the Go Auto Services may be more difficult than most to start-up because of the cost of the equipment and transportation.  
• May take time to gain clientele: A lot of people may be loyal to their current mechanic since they know how they operate and not willing to put trust into new, unknown mechanics. Because of this, it may take time for On the Go Auto Services to gain a customer base.
• Many indirect competitors: While the company has no direct competition in the area, there is a large number of mechanics and auto repair shops in Greater Sudbury that already have an established client base and will be indirectly competing with On the Go Auto Services.
• No reference: Although having no direct competition is considered a strength for On the Go Auto Services, it may also in some way be a weakness. There is no reference in the Greater Sudbury Area that the business can research to help guide them in their venture. This may pose a challenge when creating a business plan and strategy.  
• Limited flexibility in pricing: Because of the high cost of transportation and operation, On the Go Auto Services will have limited flexibility in the pricing of their services and therefore has limited strings to pull when it comes to attracting and retaining customers.

Opportunities

• Introducing a new service: In today’s society, people are always looking for new, innovative things, especially when it comes to products and services. On the Go Auto is taking advantage of this opportunity and will attract customers by introducing an unprecedented and original service in their area.
• Growing population in Greater Sudbury Area: The population in the Greater Sudbury is continually rising, along with the population of people who own vehicles. By locating themselves in this area, On the Go Auto Services is taking advantage of the opportunity of attracting and retaining new clients each year.
• Development of proprietary products: A possible opportunity for On the Go Auto Services is to eventually create their own brand-name products such as windshield wipers, mud flaps, decals, etc. once they have established a trusted brand within their community.
• Development of additional stores: Another opportunity that the business could take advantage of in the future would be the development of additional stores and expansion of the locations they serve in the Northern Ontario Area.
• Strategic partnerships/alliances: Creating a coalition with a well-known and trusted automobile or auto service company could be a great strategy for On the Go Auto Services. Taking advantage of this potential opportunity could be very beneficial to the business in regards to building trust and differentiating themselves.  

Threats

• Changes in laws/regulations: A change in laws and regulations regarding automotive repairs could definitely negatively affect On the Go Auto Services. For example, it is possible for new laws/regulations to pass that could prevent mechanics from working on vehicles in driveways or public properties such as parking lots.
• Changes in capital: Potential changes in the cost or the availability of On the Go Auto Services capital and financing could also be a huge threat to the business and their service capabilities.
• Economic downturn: It is a well-known fact that a negative shift in the economy such as recessions and high unemployment rates will negatively affect consumer purchasing/spending. This is a threat to every business, and On the Go Auto Services is no exception.
• Growing use of alternative transportation: People everywhere are aware of the environmental crisis the world is currently facing, and many are starting to do something about it. In the years to come, people may start turning to alternative methods of transportation such as walking, bicycles, buses and subways whether it be because of their mindfulness for the environment, or because of the growing population which would allow for different methods of traveling. This would threaten the vitality of On the Go Auto Services.
• Emergence of competitors providing similar services: Another more likely threat for On the Go Auto Services would be the arrival of competitors providing “mobile mechanic” services in the Greater Sudbury Area. This would threaten the business as the competitors would be targeting the same market.

Data Set Collection

Data Set Analysis

         The selected data sets were considered as relevant and beneficial because they provide information to better understand the viability of On the Go Auto Services. To illustrate, as we can see in Figure 1: Car Sales in Canada(Statista) (Statista), it’s good to know which vehicle brands sell the most in order to have an idea, for example, which types of parts the business will most likely need to stock up on regularly, or which brand our mechanics should emphasize their knowledge on. In  REF _Ref526269274 \h Figure 2: Oil Change Services Market Research CITATION Wor17 \l 4105 (World) (World), it is revealed that demand is going up for oil change as more and more Canadians are travelling by car, especially if there are added bonuses such as tire rotations. With On the Go Auto Services, consumers won’t have to budge and will profit from our delivery convenience which won’t only be a bonus but a catch. In  REF _Ref526269306 \h Figure 3: Sudbury Income, CITATION Sud18 \l 4105 (Sudbury) (Sudbury) we see average and median household income statistics for Sudbury. This data set can help us keep our price range from exceeding reasonable limits and can give us an idea what customers would be willing to spend.
        The selected data sets align with our problem definition and support our group’s analysis even though it is not specific to our business model because there has never been anything like it. Therefore, we must collect the data we see most suitable to help us develop a strategy in line with the information we gather about related markets and such. This can guide us through a path never taken before which is our principal challenge.  REF _Ref526269250 \h Figure 1: Car Sales in Canada CITATION Sta18 \l 4105 (Statista) (Statista), which shows an overwhelming lead by Ford, is useful in that it can lead us to consider partnering with the company or spotlight special focus to their drivers for instance.  REF _Ref526269274 \h Figure 2: Oil Change Services Market Research  CITATION Wor17 \l 4105 (World)(World)is helpful to know that industry is in demand and that road cars are increasing. According to their findings, Ontario is the most populated province and includes more than 40% of used car dealers, so we’re starting in a good place to pierce a fresh market.
        To confirm the quality of the information we gathered, our group took steps to compare and contrast what was collected by searching the same data sets (themes/subjects) multiple times on different databases. We compared several different trusted articles and websites when reviewing car sales in 2018 and doing so confirmed the validity of what was discovered.
        We believe timeliness is a crucial factor with secondary data if it is to benefit any research project regardless of the industry. A span of 1 to 3 years seems reasonable for us in the auto industry. There are some businesses that have administrative systems maintained in real time but in our case we really just need a solid understanding of the latest type of consumer behaviour in this sort of market, how often, on average, maintenance is required, to what extent consumers educate themselves on vehicles, how loyal or satisfied they are with their mechanics, etc.
        Our group took steps to confirm the completeness of the information and that it was originally collected for a similar purpose by making sure there was sufficient data for the research purposes and by looking deeper into what was posted to the databases. All three datasets show to have collected enough numbers, the samples are full. Furthermore, on Statista, we couldn’t access the sources (we need to pay to access that information) but we do know that it is a trusted database recommended by our teachers and educational institutions and even then, we compared what we had with other similar data as described in question 3 to assure consistency. We got the household income in Sudbury from Sudbury’s website itself and Ibis World was another sure, trusted source.