This report evaluates the business model of Autoguru, a car servicing provider in Australia, and discusses its unique value proposition, customer segments, key partners, and critical success factors.
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Running head: BUSINESS REPORT ONAUTOGURU Business report onAutoguru Name of the student: Name of the university: Author note:
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1 BUSINESS REPORT ONAUTOGURU Executive summary AutoGuru has become the first car servicing provider in Australia to offer payment after services function. The company has been able to transform the ways consumers are able to book a car service. Getting involved within partnership with mechanics and car service companies has led to emergence of exceptional deals, transactions along with trades in improving the productivity of the company. All the workshops of AutoGuru has complete control on setting their hourly rates along with parts pricing through which it can make adjustments any time for suiting the business needs. As the company also offers online car booking services it might face the risk of privacy liability due to online hacking and scamming threats. The company requires addressing such risks through protecting personal identifiable information to avoid disclosure of important information to unintended parties.
2 BUSINESS REPORT ONAUTOGURU Table of Contents 1.0 Introduction................................................................................................................................3 2.0 Business Model..........................................................................................................................3 2.1 Building blocks......................................................................................................................4 2.1.1 Customer Segments........................................................................................................4 2.1.2 Key partners....................................................................................................................4 2.1.3 Value proposition............................................................................................................4 2.1.4 Key activities..................................................................................................................4 2.1.5 Channels.........................................................................................................................4 2.1.6 Revenue Streams............................................................................................................5 2.1.7 Cost structure..................................................................................................................5 2.1.8 Key resources..................................................................................................................5 2.1.9 Customer relationships...................................................................................................5 2.2 Interrelationships...................................................................................................................5 2.3 Critical success factors..........................................................................................................6 2.4 Downside risks.......................................................................................................................7 2.5 Business model Changes.......................................................................................................7 3.0 Conclusion.................................................................................................................................8 References......................................................................................................................................10 Appendices......................................................................................................................................0
3 BUSINESS REPORT ONAUTOGURU 1.0 Introduction This report has aimed to evaluate an innovative company by deconstructing the business canvas model. The report has also developed critical success factors based on the company requirements, which is essential for the sustainability of the organization. AutoGuru, a Gold Coast start up, has developed an innovative way of connecting the drivers to the car repairing and services. AutoGuru has helped the consumers in understanding the amount they need to pay that are based on the cost of parts, labour rates and factory service times. The company has been able to transform the ways consumers are able to book a car service. Australia having one of the most diverse markets in respect to vehicle industry consisting of more than 54 car brands, 25000 variants and 900 models requiring repair and maintenance (Caetano et al., 2017). 2.0 Business Model AutoGuru has become the first car servicing provider in Australia to offer payment after services function. In future, the company hopes to directly deal with cars for effective predictive marketing. The company has used their above the line marketing to expand their business rapidly (Baldassarre et al., 2019). The company chose to establish their business in the South East Queensland to meet the demand with adequate supply. The mechanic market in that region is twice compared to the other regions.
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4 BUSINESS REPORT ONAUTOGURU 2.1 Building blocks 2.1.1 Customer Segments The major consumer segment of AutoGuru is mars market of Australia as the company has focussed to reach its services to as many people as possible as it offers connectivity between the car repairing services and every consumer who owns a vehicle(Kerzner & Kerzner, 2017). 2.1.2 Key partners The major business partners of AutoGuru include mechanics and the car repairing companies. Partnering with these companies facilitates the business in becoming efficient car servicing provider for consumer in need. 2.1.3 Value proposition The unique value proposition that is offered by AutoGuru is that it serves as the simplest car booking and servicing service for its consumers in Australia. The consumers can attain instant car booking and servicing facility through its website booking.com (Wild, Wild & Han, 2014). 2.1.4 Key activities The major business activities that are followed by AutoGuru in attaining competitive advantages include extensive marketing for increased consumer reach, unique and rapid service offerings and offering support to consumers regarding car maintenance (Parris et al., 2016). 2.1.5 Channels The major channels employing which the company attains increased market reach includes above the line marketing, predictive along with digital pay per click marketing.
5 BUSINESS REPORT ONAUTOGURU 2.1.6 Revenue Streams The major revenue streams of AutoGuru is through its diversified repairing and car booking services through offering after pay serves to consumers by means of which it is attaining an operating margin of 20% (Ovans, 2015). 2.1.7 Cost structure The cost structure followed by AutoGuru considers webhosting that accounts for 10%, advertisement taxes of 10%, admin or human resource of 30% along with stock 50% of the company’s revenue (Joyce & Paquin, 2016). 2.1.8 Key resources The major resources those contribute to competitive edge for the company includes human resources, current consumer and sales data along with industry analytics that facilitates in developing robust car repairing and booking services. 2.1.9 Customer relationships Effective consumer relationships are maintained by AutoGuru through direct and e-mail marketing along with highly responsive social media interactions. This facilitates in increasing awareness of services offered by the company. 2.2 Interrelationships Getting involved within partnership with mechanics and car service companies has led to emergence of exceptional deals, transactions along with trades in improving the productivity of the company. In addition, consultation with the trade union personnel’s facilitated in stabilising the financial performance of the company (Gollenia, 2016). Such support further facilitated in developing suitable pricing strategies of its offerings. Attaining the terms and conditions of such
6 BUSINESS REPORT ONAUTOGURU contracts serves as a factor in sustaining the stability with the shareholders and stakeholders. Through employing digital and pay per click advertising and predictive marketing bridged the gap between the consumers and the management. Efficient along with better technology use facilitated the employees in attaining trust, loyalty and reliance from consumers (Ovans, 2015). Return policy along with better access to users concerning the mobile applications served as value proposition that improves the company’s brand image. 2.3 Critical success factors The crucial success factor for AutoGuru is its simple car repairing and booking services offered to consumers. The unique and value added services offered by the company to its consumers in Australia makes it simpler for them to understand the exact amount they will require to pay through connecting them to quotes relied on factory service items, cost of the parts along with the labour rates of the local mechanics. With growing popularity and demand of the services offered by AutoGuru, the company developed its business as a creative agency that develops booking portals for consumers for attaining convenience in areas such as food delivery, tourism and home services (Dudin et al., 2015). Getting involved within partnership with mechanics and car service companies has led to emergence of exceptional deals, transactions along with trades in improving the productivity of the company. Another critical success factor that facilitated AutoGuru to train competitive edge over its business rivals in Australia and position itself as a sustainable company is its user-friendliness of consumer vehicle repairing and booking services. The company innovated its service offerings to serve as a platform for consumers where they can elect their vehicle and services when they require and AutoGuru showcase quotes from workshops within radius of five kilometres (Hatten, 2015). This makes it simple to get started through inviting mechanics through quoting jobs for
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7 BUSINESS REPORT ONAUTOGURU offering consumers with exceptional repeating services. All the workshops of AutoGuru has complete control on setting their hourly rates along with parts pricing through which it can make adjustments any time for suiting the business needs. 2.4 Downside risks In operating business sustainably within Australia, AutoGuru deals with certain downside risks related with insurance and safety, cost tolerance along with lack of innovative and adequate infrastructure. Being a newly established company, it might face the risks of insurance and safety issues regarding poor service delivery by mechanics. Such risks can result in leaks and spills of containment that can be hazardous in case it is not effectually cleaned up (Gollenia, 2016). This can affect ensuring sale car repeating services to consumers and in addressing such concern proper training of mechanics and employing highly skilled personnel is recruited within the company. Moreover, as the company also offers online car booking services it might face the risk of privacy liability due to online hacking and scamming threats. The company requires addressing such risks through protecting personal identifiable information to avoid disclosure of important information to unintended parties. 2.5 Business model Changes I have observed that there are several ways that can facilitate users to use the company’s application and account. I consider organizing a training course for the employees that is deemed to be advantageous in offering practical experience of employing the car servicing services. Making them to follow the steps themselves can facilitate them to become familiar with the current activities of the car repairing services. In addition, I would also consider change regarding providing employees with necessary training that can improve their exiting knowledge,
8 BUSINESS REPORT ONAUTOGURU skills and expertise in offering exceptional consumer service. Practical experience attainment can also facilitate in carrying out tasks in better manner. I would also recommend change regarding introduction of post-training tests for evaluating the ability of employees in ensuring practical application of acquired skills in conducting workplace activities. I would also have considered attending, meetings with the management panel in order to decide most suitable training courses. In addition, I would also recommend segmenting the training courses that can support the employees in attaining detailed knowledge regarding business activities. In the initial stage, I might consider making plans that can support me in developing effective business strategies as per consumer needs. Moreover, I might also consider analysing the efficiently of business plans with the shareholders and stakeholders. Moreover, I might also prefer circulating draft for the meeting to the director in attaining his approval for implementation of the training activities. Such approval can facilitate me in dealing with illegal instances. In addition, I would also inform the law authority regarding the developed plans that might provide me assistance with sustaining the legal business conducts. Conducing regular trainings and seminars for employees can ensure attaining sustainable infrastructural development. 3.0 Conclusion The report has developed critical success factors based on the company requirements, which is essential for the sustainability of the organization. It has been gathered from the report that AutoGuru has become the first car servicing provider in Australia to offer payment after services function. Being a newly established company, it might face the risks of insurance and
9 BUSINESS REPORT ONAUTOGURU safety issues regarding poor service delivery by mechanics. However, with growing popularity and demand of the services offered by AutoGuru, the company developed its business as a creative agency that develops booking portals for consumers for attaining convenience in areas such as food delivery, tourism and home services.
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10 BUSINESS REPORT ONAUTOGURU References Baldassarre, G., Daily, S., Busby, C., Busby, C., Daily, S., & Amarasekara, S. et al. (2019). Gold Coast startup AutoGuru connects drivers to transparent quotes on car repairs and servicing - Startup Daily. Retrieved fromhttps://www.startupdaily.net/2017/07/gold- coast-startup-autoguru-connects-drivers-transparent-quotes-car-repairs-servicings/ Caetano, A., Antunes, G., Pombinho, J., Bakhshandeh, M., Granjo, J., Borbinha, J., & Da Silva, M.M.(2017).Representationandanalysisofenterprisemodelswithsemantic techniques: an application to ArchiMate, e3value and business model canvas.Knowledge and Information Systems,50(1), 315-346. Dudin, M., Kucuri, G., Fedorova, I., Dzusova, S., &Namitulina, A. (2015). The innovative business model canvas in the system of effective budgeting.Asian Social Science,11(7), 290-296. Gollenia, L. A. (2016).Business transformation management methodology.Routledge. Hatten,T.S.(2015).Smallbusinessmanagement:Entrepreneurshipandbeyond.Nelson Education. Joyce, A., &Paquin, R. L. (2016). The triple layered business model canvas: A tool to design more sustainable business models.Journal of Cleaner Production,135, 1474-1486. Kerzner, H., &Kerzner, H. R. (2017).Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons. Ovans, A. (2015). What is a business model.Retrieved July,5, 2016.
11 BUSINESS REPORT ONAUTOGURU Parris, D. L., Dapko, J. L., Arnold, R. W., & Arnold, D. (2016). Exploring transparency: a new framework for responsible business management.Management Decision,54(1), 222-247. Wild, J. J., Wild, K. L., & Han, J. C. (2014).International business. Pearson Education Limited.
Running head: BUSINESS REPORT ONAUTOGURU Appendices
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