University Business Report: AutoGuru's Innovative Model

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This report provides a comprehensive analysis of AutoGuru, an innovative car servicing provider in Australia, by deconstructing its business model using the Business Model Canvas framework. The report begins with an executive summary highlighting AutoGuru's unique offering of payment after service and its transformation of the car servicing booking process. The analysis delves into the building blocks of the business model, including customer segments (primarily the mass market in Australia), key partners (mechanics and car repair companies), value proposition (simple car booking and servicing), key activities (marketing and service offerings), channels (above the line and digital marketing), revenue streams (car booking and afterpay), cost structure (web hosting, advertising, admin, and stock), key resources (human resources and data), and customer relationships (direct marketing and social media). The report further explores interrelationships between these building blocks, emphasizing partnerships, pricing strategies, and the use of technology. Critical success factors, such as user-friendliness and innovative services, are identified, along with potential downside risks like insurance issues and online security threats. The report concludes by suggesting potential business model changes, such as employee training and post-training tests, and emphasizes the company's growth potential. The report is based on MGMT20143 assignment requirements.
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Running head: BUSINESS REPORT ON AUTOGURU
Business report on Autoguru
Name of the student:
Name of the university:
Author note:
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BUSINESS REPORT ON AUTOGURU
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.
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BUSINESS REPORT ON AUTOGURU
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
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BUSINESS REPORT ON AUTOGURU
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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BUSINESS REPORT ON AUTOGURU
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.
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BUSINESS REPORT ON AUTOGURU
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
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BUSINESS REPORT ON AUTOGURU
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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BUSINESS REPORT ON AUTOGURU
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,
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BUSINESS REPORT ON AUTOGURU
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
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BUSINESS REPORT ON AUTOGURU
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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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 from https://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). Representation and analysis of enterprise models with semantic
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). Small business management: Entrepreneurship and beyond. 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.
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BUSINESS REPORT ON AUTOGURU
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.
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Running head: BUSINESS REPORT ON AUTOGURU
Appendices
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