New Enterprise Development and Small Business: Case Study

New Enterprise development and small business

 

1. A.  I have selected RUB-DUB CAR WASH which is located in Epsom, Auckland. They are providing exterior Auto car wash service and interior grooming services to the customers. (RUB-DUB CAR wash)

No.	Services Name
1.	Standard Wash
2.	King Wash
3.	Standard Valet(Include interior vacuum and standard wash)
4.	Sliver Wash(include interior vacuum, window cleaning, dash cleaning and door clean)
5.	King Wash( include king wash, and silver wash, use cream for dash and doors and mat cleaning)
6.	Mat cleaning door zam and mat cleaning ( Extra services that any customer buy)

1. B. Prices comparison with competitors

   WASH (exterior)	       Price	Competitors services Name(city car groomer)	        Prices	Second competitor(Care-fe)	Prices
STANDARD WASH	     $18	Super valet	   $98 4*4 $115	Wash wax ‘n’ Dry	$23 4*4 $33
KING WASH	    $ 23	Executive valet	$149 4*4 $169	Car-fe express ‘n’ Sine	$28 $38
STANDARD VALET	    $ 40	Car- fe special	$40 4*4 $50
SILVER VALET	    $ 50	Standard groom and polish	$110 4*4 $135	Car-fe dual shine	$150 4*4 $180
KING VALET	   $ 70	The works	$205 4*4 $240	Car-fe Black pearl classic	$200 4*4 $240
Extra services	Car-fe ultimate	$85 4*4 $100
Car-fe new car	$60 4*4 $70
Extra services	$15

Our company only is one company that provides AUTO CAR WASH and the cost is just $18 and $23. However, car- fe provide hand wash which cost $23 and for 4*4 cost is $33 which more than our company. We do not charge differentially prices for any 4*4 cars so the prices are always same for all cars. Secondly, we provide basic grooming and wash services that cost is less than competitors. whereas, the company weakness are that they are not providing more offer to the customer but car-fe has more option for the customers.  For more comparison we can visit competitor website where we can see their latest updates as per pricing www.citycargroomers.co.nz  , www.car-Fe.co.nz.

1.C. Position of product

  Organization’s services take good position in market as I mentioned about pricing so it belongs to low pricing with high quality because we also give sureties to customer that there will no damage in your car during exterior wash. Addition to this the company has professional worker for interior services thus attain 1 to 2 years grooming experience.

1.D Where does it purchase the product or its components? Are there other options for sourcing?

Name of Materials	Name of supplier or company	SUPPLIER LOCATION
Chemicals	Pacer car clean products	33 Ha Cres,Wiri,Auckland 2104
Vacuum Machines	Tommy car wash system	581 Ottawa Ave #300, Holland, MI 49423, USA
Car wash equipment (brush, high presser hose, pump system, tanks, spray guns)	Tommy car wash system	581 Ottawa Ave #300, Holland, MI 49423, USA
Interior cream	Pacer car clean products	33 Ha Cres,Wiri,Auckland 2104
Air Pressure Pump
Carpet cleaner	Pacer car clean products	33 Ha Cres,Wiri,Auckland 2104

1.E product to the buyer

To get services, buyer needs to reach are location which is 131, Epsom, Auckland. There is no any advance booking for customer so customer has to visit our office to select any offer. This is like first come-first-serve basis. However, there is helpline number for customer for any enquiry regarding any services that is +6496300950 OR mail [email protected]

2.A Market for the product

As per the interview that held with the manager. He mentioned that they do not have exact idea about the total market share of their company in market place but as per their records the approximately 45% customer like getting their services as compared to the competitors in North island area.

The most demanded service is King Valet among the customers they prefer bacuse it include everything like wash, mat cleaning and interior cleaning.

2B. impact of economic situation

The economic fluctuation has big impact on a business so each of organization need to introduce the strategies to handle the situations which will help to reduce the impact so I founded same factors that impact our company in current situation.

• Inflation: The inflation rate has been increased by 0.12 percentages as compared to 2016 so as per the current situation the businesses are impacted by fluctuation in inflation. The current biggest impact for our company is the prices of chemicals are boomed up by suppliers because they are from America but due to New Zealand dollar rate is going down as compared to America so we are spending more money for thus chemicals

(Treading Economics)

• Taxes:  the cooperative tax is stand at 28% which is still same to the 2015 so at the current situation taxes will not impacting our selling. (Business income Tax)

• Wages: As per the new polices government has decided to increase the wages of employees from $15.25 to $15.75  which is good for workers perspective but It will put more load on business. In our company 12 employs working so the company has to pay approximately $150 more to them. However the manager is now doing meetings with owner every month to discuss when we should increase the price for grooming services to cover up the situation. (current minimum wages)

2c. growth can be anticipated over three years

In next three years company can introduce so many things which help them to increase the Return of Investment. I think company need to come with new plain for stability and continuous growth

Following are the way which can help them:

• Increase the staff: I think there should be one more employee because some time the car wash is too busy but due to less staff they have to wait more. However, if they will hire one more then they will able to done more cars in day

•  Online booking: the bookings will he help us to just get estimation that how much customers will come for the services and according to this manager can arrange staff. Moreover, customer will also not trouble when busy.

• Give more offers: if the more offer will provided like, customer need to refer three friends for services thus will get 10% discount and when all of three customer get car wash services then the main customer can be able get free silver valet services. This one of the marketing strategy for marketing.

2d  Market strategies

The Business strategies are needs of company to stability in growth for long term perspective and following are the two strategies are used by our company marketing services (Business income Tax)

a.Ladies Day Tuesday

It is special offer for ladies if they come on Tuesday and purchase standard valet then it will be upgraded into King Valet services

b. Free Upgrade Thursday

If anybody buy standard wash and silver valet then it will upgraded into king valet (RUB-DUB CAR wash)

2. E. impacting market

1. Environmental regulations

Water treatment: as rub dub is a Car Wash Company and they need to use water for exterior wash. However, as per the New Zealand council low a car wash company must do treatment of water which can contain chemicals and other waste with water. (Environmenral Factors)

2. Political climate:

The New Zealand political system is based on British system and there is stable government. Moreover, The World Bank ranked second New Zealand for easiest to start and operating small businesses and the taxes for rate are good as compared to international market. (Stablity and Security)

3. Influx of immigrants:

The migration has positive reflection for our company as more migrant means more cars as results the demand for grooming will increase and the another factor is there will be more skilled employees thus can help us to grow our company. (Ecomic overview)

4. Technology:

Technology has big impact on businesses like, Automotive car wash has saved our for exterior that was taking approximately 15 mints but auto car wash take only 5 to 7 mints.

5. Other environmental factors: Car Wash Company is also affected by weather. If weather is not good then company has to stop work as nobody come for the wash service.

3.A WHO BUY THE PRODUCT

1. As per geographical term the approximately 75% people are living in North island thus are getting our regular services and 15% are staying in city central area and other are from different companies thus have contracts with manger to groom their cars when new car will be imported from outside the country for their Yards. (RUB-DUB CAR wash)

2. Demographical Term: as per manager told in interview that they do not know the exact age but as per assumption the main buyer age is “between” 20 to 55 and mostly girls coming for the services from because of the one girls offer day. 95% are kiwis are now getting services however, other customer come up with from realizations like Punjabi, Gujrati and so on

3. Psychographic terms: the most of the customer belongs to the good families and as per the attitude the most of them worried about the environmental  problem so they always suggest to use eco-friendly chemicals that’s buy company focus them as well

4.A Direct competitors:

No	Direct competitors(locations)
1	The city car groomers(Penrose)
2	Clean car valet(new market)
3	Espresso car wash(New Market)

• The city car groomers have one advantage that they providing carpet shampoo services and door jambs services which are not available in Rub-dub and some time they offer discount and the services include so many things so as the results they can attract easily clients easily.

• Espresso Car Wash is franchisee which located in different places but the their new market car wash are the direct competitor for the Rub-dub and they promote hand wash services as the motive to convince more customer that hand wash is much better than the Auto car Wash.

• Clean Car Wash has started business in car parking near any mall because it is very easy to getting more customers. They are a direct competitors because they providing same services in almost same prices. They are stronger competitor for the company due to the location is just near to RUB-DUB

4. B. INDIRECT COMPETITOR

Indirect competitors Name
1	Car-fe’ valet and coffee

As per my research I get know about Car-fe Valet Company which is located in Greenlane. They have coffee shop along with the car wash. They providing different types of options for the customer’s attractants and the services take around 60 to 70 mints to finish because of extra staff. Whereas, in RUB-DUB, customer has to wait more than 60 mints. In Car-fe’ customer has option to buy and have entertainment sources like Television shows and music to listen but it is missing in RUB-DUB.

4.C Business strategies to maintain a competitive advantage

The first strategy to improve the quality of grooming is trough giving every week lesions to the workers for maintaining work quality which will give more satisfaction to the clients. Secondly, the company should put some entertainment sources for them so that they not feel bore in waiting room. Thirdly, company can start to save the information of customer so that they can get exact idea about how many customer obtain services as well as they can offer discount to the regular customers that help to connect more customers in future

Furthermore, They can introduce membership discount offer for instance if any client will be successful to get three customer than he or she will be entitle of free car wash service and three customer  will also gain 10% discount on each service that choose.

SWOT Analysis

5.A Strengths

• Low operating cost of auto Car Wash.
• The Leadership quality of entrepreneur.
• Past experience of entrepreneur in same business has one positive point.
• Equipments are easy to obtainable from marketplace.
• In target market, the company has a good relationship with the customers.
• Well trained worker thus have experience from 1 year to 2 years.
•   Good location.

5.1 Weakness

• Company lacking point is customer satisfaction because some time car wash is too much busy but due to ore they cannot groom properly the interior.
• Car wash has no special services so many individuals like to themselves at home.
• Workers are casual bases which mean they are not keeping themselves for long term with the company.
• Lack of support from the manager is one of the biggest concern in workplace.
• Some time Auto car wash’s brush do damages to the side mirrors if employ do not close them before start.
• Customer services are need to improve more.

5.2 Opportunity

• Internet booking will help to connect more people in large market area.
• People interests are increasing toward automotive car wash.
• Business can exceeded easily if start home services where employees will wash or groom the cars at home for the older person or thus are unable to go outside due to busy schedule.
• The business can exceeded if include like truck, boat wash.
• Can introduce the new technology or equipments which will helpful for the organization.

5.3 Threats

• There more people giving the interest to open Car Wash Company so that means the number of compotators are increasing that can give those treats.
• Competitors can reduce the prices are compared to the Rub-Dub prices then it will effect company’s market Share
• The more market products and equipments are introduced to the market that easy to use at home so if start to use product at home then it will affect the sale of market
• Suppliers can take more time deliver the containers of chemicals which may affect company’s work

Identify the most important issues and challenges faced by the company which may hinder its survival and/or success

CRITICAL ISSUES

6.A  The issues

• The car wash is also depending upon the weather situation like, some time customers do not visit for services because of rainy weather.
• Employees are continuously leaving jobs because they thing it is very hard job as manager told me that 7 workers leave the job within 2 months.
• Damages to the cars are also one of the biggest issues in company.

6.A.1 Challenges

• the company main challenge to hire skilled worker as people are not giving interest in this field so company has to hire others thus will get training.
• Parking space is not enough for work place because some time it is too much busy and at the same time customer trouble to get parking.
• The continuous growth for further years and getting stability in the number of customer is one of the challenges.

6.B Strategies

The following are the strategies are be implemented for resolving the issues and challenges.

1. Inspections of car wash machine: it helps to make sure that everything is working properly and another benefit is to reduce the chances of dames to the exterior by brush.
2. Proper contracts: to make sure those employees will not leave the job in short time of period.
3. Feedback: there is a one option of feedback option for the customers thus getting services. Secondly, the advantage of the feedback is that will give them suggestions to keep continuous growth.

(n.d.). Retrieved 03 08, 2017, from RUB-DUB CAR wash: http://www.rubadub.co.nz/

Business income Tax. (n.d.). Retrieved 03 09, 2017, from inland Revnue: http://www.ird.govt.nz/business-income-tax/bit-income-tax-index.html

current minimum wages. (n.d.). Retrieved 03 09, 2017, from Emplyment New Zealand: https://employment.govt.nz/hours-and-wages/pay/minimum-wage/minimum-wage-rates/

Ecomic overview. (n.d.). Retrieved 03 10, 2017, from New Zealand immigration: https://www.newzealandnow.govt.nz/investing-in-nz/opportunities-outlook/economic-overview

Environmenral Factors. (n.d.). Retrieved 03 010, 2017, from Auckland City Council: http://www.aucklandcouncil.govt.nz/en/search/pages/search.aspx?k=environmental%20factors

Stablity and Security. (n.d.). Retrieved 03 10, 2017, from New Zealand Now: https://www.newzealandnow.govt.nz/investing-in-nz/stability-security

Treading Economics. (n.d.). Retrieved 03 09, 2017, from New Zealand Inflation rate: http://www.tradingeconomics.com/new-zealand/inflation-cpi

( another information received from interview)