Lube Mobile Auto Repair Business Plan

This assignment explores the viability of establishing a mobile auto repair service called 'Lube Mobile' in Australia. It analyzes the market gap for such a service, evaluates its potential profitability through strategies like online marketing and price penetration, and considers its impact on the Australian automotive industry.

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Name of the Student
Name of the University
Author Note

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Abstract
The purpose of this paper is to develop a new business idea. It has been seen that most people
use their own vehicles for their benefits. The vehicles can break down and this will be very
problematic for the individuals. The Lube Mobile Auto repairing services will provide the
customers with the mobile repairing services that will benefit the customers in the best ways. The
benefits of the business idea have been discussed. The proposed business model canvas will be
discussed here along with the relationship between the nine building blocks. The various critical
factors for the success of the business idea have been highlighted. The feasibility of the business
idea has been discussed here as well.

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Table of Contents
Introduction......................................................................................................................................3
Market gap of problem....................................................................................................................3
Benefits from business idea.............................................................................................................5
Business model canvas....................................................................................................................6
Feasibility of the business idea........................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

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Introduction
The modern business environment is very much competitive from all the aspects. This is
why the various industries are looking to plan their success in a new and positive way. Many
challenges are posed in front of them because of the tough challenges due to the creativity and
innovation factors. It is very important to launch some new ideas into the business context so the
business organizations get the needed profits within their industry. As a result of the growing
competition, the organizations will definitely need to innovate some important processes to
generate new business ideas. The concerned industries must look forward to focus on the
innovation process. They have to look at the customer satisfaction process as well (Hill &
Brierley, 2017). It will be the first priority for all the entrepreneurs to generate some new
business ideas that will cater to the satisfaction of the customers (Best, 2012). They must be able
to ensure the fact that the new business idea should be very much effective for the benefits of the
customers. In this paper the business idea will focus on the Lube Mobile Auto Repair Services.
The organization was set up in the year 2015. This is a mobile application that caters to the
mobile application offering the customers with the online mechanical services. The feasibility of
their business idea, the critical success factors and the business model canvas for this online
mechanical business idea will be discussed.
Market gap of problem
It is very important to discuss about the market gap in this section. The paper focuses on
the auto repairing industry in Australia. Recently, a fall in the market share has been noticed in
this industry. There are several business organizations that work within the industry. However,
the revenue from the industry is distributed between the several auto garages and mobile auto
repairing auto repairing services. It has been studied and found that the auto repair shops are

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responsible for the revenue generation of the industry around 12-15%. This is why smaller auto
repair shops or the mobile mechanic businesses can contribute to the revenue generation of the
industry to a large number (Castillod, 2016). This can turn out to be a successful business as
well. Keeping this mind, the Lube Mobile has come up on the focus for a successful venture into
the automobile industry. This new mobile mechanic business can attain a high growth into the
business as well. The researches have conveyed that the customers are inclined for the mobile
auto repair services for the market gap already mentioned above. This is why it is very important
to prepare the business model canvas for the business idea already mentioned.
There is another cause for this business idea to be implemented. The per capita
disposable income within the country can be increased. The corporate facilities and profits are
also in the favor of establishing this business idea firmly into Australia. The consumers are
targeting to take the facilities from this business idea for the suitable maintenance in the mobile
auto repair services. The ‘do-it-yourself’ auto repair services can be compared in the context.
Another important thing in this context is the increasing disposable incomes (Izogo & Ogba,
2015). This disposable income level is very important because the consumer have to pay a high
amount of money for the repair of the automobiles and its maintenance.
The current problem is the fact that the professionals like the automobile engineers,
technicians and mechanics do not have the proper amount of money for renting the shops for
mobile auto repairing garage. This is why it is extremely important for them to begin the online
mobile auto repair services. A very uncertain thing about getting the orders is the fact that the
mechanics have to go around the highways to find any car, truck or bus is broken down. This is
tiring from both mental and physical aspects. They carry their toolbox for the maintenance of the
vehicles. However, these technical personnel must have the technological knowledge so they can

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offer proper auto repair services. The maintenance work will ensure the power change for the
development of the repairing services with an increased amount of service charge (Duffy, 2014).
Benefits from business idea
The benefits that are gained from the innovative business idea are very important factors
for the overall success of the business. The Lube Mobile Auto repair services have always
offered the value added facilities to the customers. They focus on meeting the demands of the
customers and they go through a thorough market research for the company as well. Only then
they are able to provide the customers the best services (Belz & Peattie, 2012). The demands of
the consumers are increasing so they have to keep this in mind as well. They have planned to
provide the customers with a range of facilities through the online mode that will prove to be
important for their advantage. The managers of the company will provide the sustainability for
the organization through online modes. They can provide the services with the introductory
letters with several attractive brochures to the customers with the various transport and logistics
companies.. This organization will provide the customers with the advantages like the repair
building, getting the contracts from the government regarding the maintenance of the vehicles.
They will look to make proper advertisements for their business and develop their business
model for the betterment of their services (Jobber & Ellis-Chadwick, 2012). This will be highly
important for gaining the competitive advantage over their rivals through the proper marketing
promotions through the magazines, advertisements through the TV channels and Radio stations.
They will also advertise their products through the digital marketing as well. The yellow page
advertisements will also be helpful for the business idea to get the best results regarding the sales
of their services (Armstrong et al., 2015).

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The company Lube Mobile auto repair services will look to focus on the different set of
customers that will be able to provide the better services within the budgets. One of the most
important things for the company is providing the automobile exhaust processes. Thus they can
be able to repair the automobile brakes and the automatic transactions through the online modes.
They will also provide the customers with the wheel alignment repairing services and automotive
electric value added services (Cuadros & Domínguez, 2014).
Some of the significant benefits from generating this business idea are looking after the
consumer satisfaction and providing them with the proper safety. They are planning to offer the
fleet service to the customers after they settle down with their business in a positive manner.
They are very keen to meet the consumer product expectations by the way that the mechanics
can provide them with the needed outcomes. The auto mechanics will be given the training and
thus they will become very highly skilled. This will cater to the needs of meeting the demands of
the customers. The auto repairing services will raise the revenue for the company.
Business model canvas
Key Partners Key Activities Value
Propositions
Customer
Segments
Key Resources

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Various
stakeholders like
the suppliers,
buyers,
investors,
advertising
agencies,
partners for the
joint venture
(Muhtaroglu et al.,
2013).
Providing the
customers with
the best benefits
as they will
identify the basic
requirements by
the customers
indeed.
Promoting the
services by
making many
advertisements
and getting the
attention of the
customers, they
will also opt to
operate in the
supermarkets
and setting their
pricing strategies
in the
competitive way
(Campbell, Coff &
Kryscynski, 2012).
The customers
will be the small
businesses and
households, the
people who are
in search of the
places for
changing the
vehicle engines
and repairing
them.
The brand value
of the business
has to grow,
they will follow
the trends and
design the
products
according to the
mechanical
knowledge of
the employees,
they wanted to
make sure that
the product
must be present
in the market.
The owners of
the company
want to serve
millions of
customers. They
want to develop
their retail

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model as well
(Chaffey & Ellis-
Chadwick, 2016).
Channels Cost Structure Revenue Streams Customer Relationships
Various
departmental
stores, their
official website
and mobile
application
software.
Salaries of the
employees, rents
for the offices,
garages, goods
costs, assets,
costs for their
advertising and
marketing,
corporate taxes
payable to
government
(Chaffey & Ellis-
Chadwick, 2016).
. Online sales
and the retail
sales.
They want to identify their
customers based on the culture and
target segments in the market,
providing the consumers with the
satisfaction by giving mobile
mechanic repair usages, arranging
for rewards programs and quality
management within the company.
Feasibility of the business idea
The business idea of the Lube Mobile auto repairing services can be considered as much
feasible indeed. This business can be able to attain the success properly. The automobile
repairing can be highly profitable if the marketing of the business is done online. If the company

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can implement this business idea in the best ways, they will be able to gain the highest profits
(Cuadros & Domínguez, 2014). The company will be very much successful in the automobile
industry as well. The business is expected reach the breakeven point in the second year after
being set up. The price penetration strategy should be helpful for the profits indeed. Thus the
online digital marketing and price penetration strategy can bring about the success in the
business operations of the company.
Conclusion
This paper has discussed about the justification of the innovation of the new business
idea. The chosen business idea is the Lube Mobile auto repairing services. This automobile
business will be highly profitable and feasible if the marketing of the business is being done
properly. The automobile industry in Australia is generally an open sector and this business idea
is generated to fulfill the market gap already occurred. The mobile mechanic business and auto
repairing services can really be profitable indeed. They can raise high revenues from business as
well.

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References
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction.
Pearson Education.
Belz, F. M., & Peattie, K. (2012). Sustainability marketing: A global perspective.
Best, R. (2012). Market-based management. Pearson Higher Ed.
Campbell, B. A., Coff, R., & Kryscynski, D. (2012). Rethinking sustained competitive advantage
from human capital. Academy of Management Review, 37(3), 376-395.
Castillod, J. J. (2016). Teamwork in the Automobile Industry: Radical Change or Passing
Fashion?. Springer.
Chaffey, D., & Ellis-Chadwick, F. (2016). Digital marketing. Prentice Hall.
Cuadros, A. J., & Domínguez, V. E. (2014). Customer segmentation model based on value
generation for marketing strategies formulation. Estudios Gerenciales, 30(130), 25-30.
Duffy, J. E. (2014). Auto body repair technology. Cengage Learning.
Hill, N., & Brierley, J. (2017). How to measure customer satisfaction. Routledge.