7 Domains of Mullin's Model - PDF

7 Domains by Mullins in Car-
wash start-up

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
4 major domains ..............................................................................................................................1
Macro level market attractiveness: .............................................................................................1
Macro level industry attractiveness: ...........................................................................................2
Micro level- sector benefits and attractiveness ...........................................................................3
Micro level sustainable advantage ..............................................................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES ...............................................................................................................................6

INTRODUCTION
The business environment consist of all micro and macro factors which can influence the
success and continuity of the business operations. For the new start up ventures the analysis of
these factors becomes more significant as it helps to develop feasible and less risk involvement
in the business plan. Mullin's seven domain models helps business to evaluate the impact of 7
critical factors on business planning and activities for the new start up (Schaltegger, Lüdeke-
Freund and Hansen, 2016). The report will provide an analysis of 4 domains of Mullin's model
for a new car wash start up.
4 major domains
Mullin's model emphasis on three main domains namely market, industry teams on which
business planning will depend.
(Darshan, 2019)
The market and industry domain analysis of proposed car wash setup is as follows:
Macro level market attractiveness:
Theoretical aspect: To achieve the growth targets it is necessary that services provided must be
capable to attract the customers. The macro or the external business factors plays a significant
role in this aspect. This domain considers the external business factors which makes the targeted
market suitable for the business venture.
Application: The car wash centre will also provide interior cleaning services including dash and
window cleaning, carpet vaccuming. The self service bays will also be available for the
customers. The venture is providing all types of washing services and thus profitability and
investments depends upon the nature of services. Many customers prefer automatic washing due
1
Illustration 1: Mullin's 7 domain model

to quick servicing while many prefer hand cleaning so that better quality is achieved (Neumeyer
and Santos, 2018). The business site is located in the area in which 70% of households have cars.
In addition to this the availability of 4 car dealers also provides an estimated 40% of business. In
future the region is also proposed to have commercial buildings. Thus, more customers are likely
to develop as most of the business groups find it hard to manage time for car wash services.
Thus, service facility near them will definitely attract them towards car wash centre. On the basis
of market analysis it is expected that business will have around 5-7% growth per year. The
investors are expected to receive a return of 15%.
(Source: Macro Environment, 2019)
Macro level industry attractiveness:
Theoretical aspect: The analysis of competitive forces is essential as it assists business in
retaining success. This domain particularly deals in analysing the external factors which makes
the car washing business highly profitable (Schaltegger, Burritt and Petersen, 2017). These
factors assist in understanding the existing trends and barriers in car washing business sector.
Application: In the nearby region there are only 2 major competitors. One of them is quite new
and has very limited service option. It has only handwash option of car washing. The second
competitor is well established. However, its high prices despite less satisfactory services. Thus,
2
Illustration 2: Factors influencing macro level
market attractiveness

in terms of competitive threats venture will not have strong threat. The capital will be needed to
renovate the tunnels and to construct the service bays and equipments rooms. The large portion
of the capital is required to purchase the equipments, cleaning chemicals, supplies, water
reclamation system. The capital is required to support the operation for the first 3 months.
Micro level- sector benefits and attractiveness
Theoretical aspect: To offer quality and satisfactory services business must target a specific
customer segment so that customer needs can be meet more specifically. The services provided
by the car wash centre must have some unique factor which can attract the customers. Micro
level describe the internal factors which can control the operations (Mueller and Shepherd,
2016). Thus, the domain is associated with the internal organisational features which will help
business to achieve advantages.
Application: The proposed venture will deliver full service car wash in fully automatic tunnels.
The shampoo and fragrance dispensing machines will also be available to the customers. Along
with the full service car wash customers will also have choices for exterior conveyor wash, self
service and in-bay automatic car wash services. The automatic wash services will increase the
investment cost but it will also eliminate the labour costs and delay in services due to labour
issues. The proposed venture will buy an existing car wash location and thus land acquisition
cost will be lower. The business will target owners of different types of cars. Since the location
3
Illustration 3: Macro elements influencing industry attractiveness

of the car wash site has around 4 car dealers in 10 mile radius they will be also potential target
for the business.
(Source: Elements of Micro Environment, 2019)
Micro level sustainable advantage
Theoretical aspect: It is also essential for the business to analyse the sustainability options. It
means the unique selling proportion must also help business to survive in the competitive market
in future as well (Svensson and Wagner, 2015) . The business is profitable and thus competitive
threats are quite common. However, the unique strategies and service quality can help to sustain
the position in the market.
4
Illustration 4: Factors influencing micro sector attractiveness

(Source: Will your company pass the sustainability stress tests?, 2019)
Application: The wide range of services provided by the venture will act as the most influential
driving force in retaining customers for the long term. As the demand of sustainable
development is increasing in future venture will also incorporate techniques to reduce the water
consumption by using advanced chemical agents. It will contribute to water conservation as well
as better cleaning outcomes to our targeted customers. The services are also categorised as
deluxe wash, basic, undercarriage wash as well as exterior vehicle wash. Thus, it will be feasible
for the business to target on different types of customers within market segment.
CONCLUSION
It can be concluded from the above discussion that launching a new business can be risk
taking and thus prior investments suitable market analysis must be conducted. In order to set up a
new business the market suitability, trends and competitive risks must be identified so that
venture can be made more successful. It has been also analysed from the discussion that both
macro and micro environment must be taken into account for the successful implementation of
the business venture.
5
Illustration 5: Sustainable advantage

REFERENCES
Books and Journals
Mueller, B.A. and Shepherd, D.A., 2016. Making the most of failure experiences: Exploring the
relationship between business failure and the identification of business
opportunities. Entrepreneurship Theory and Practice. 40(3). pp.457-487.
Neumeyer, X. and Santos, S.C., 2018. Sustainable business models, venture typologies, and
entrepreneurial ecosystems: A social network perspective. Journal of cleaner
production. 172. pp.4565-4579.
Schaltegger, S., Burritt, R. and Petersen, H., 2017. An introduction to corporate environmental
management: Striving for sustainability. Routledge.
Schaltegger, S., Lüdeke-Freund, F. and Hansen, E.G., 2016. Business models for sustainability:
A co-evolutionary analysis of sustainable entrepreneurship, innovation, and
transformation. Organization & Environment. 29(3). pp.264-289.
Svensson, G. and Wagner, B., 2015. Implementing and managing economic, social and
environmental efforts of business sustainability: propositions for measurement and
structural models. Management of Environmental Quality: An International
Journal. 26(2). pp.195-213.
Online
Darshan J., N., 2019. Mullins' Seven domains model to analyse business environment and
success. [Online]. Accessed through <http://crmneeds.com/mullins-seven-domains-
model/>
Elements of Micro Environment. 2019. [Online]. Accessed through
<https://www.toppr.com/guides/commercial-knowledge/business-environment/elements-
of-micro-environment/>
Industry Attractiveness. 2019 [Online]. Accessed through
<http://www.planware.org/pwe1/pwe05.htm>
Macro Environment. 2019. [Online]. Accessed through
<https://www.toppr.com/guides/business-environment/introduction-to-business-
environment/macro-environment/>
Will your company pass the sustainability stress tests?. 2019 [Online]. Accessed through
<https://www.bearingpoint.com/en/our-success/thought-leadership/will-your-company-
pass-the-sustainability-stress-tests/>
6

7

8

9

10