Carsome: Analysis of Business Opportunities and Challenges

This project provides a comprehensive business analysis of Carsome, a rapidly growing online car platform in Southeast Asia. It examines Carsome's business model, including customer acquisition, selling processes, and business development strategies. The analysis utilizes the Timmons model to assess entrepreneurial opportunities and the VRIO framework to evaluate resources and capabilities. The project identifies key issues such as customer acquisition difficulties, lengthy selling processes, and challenges in business development. It offers recommendations for improving customer satisfaction, expanding the market, and managing the business effectively. Furthermore, the project includes a timeline outlining the importance and implementation of various strategies, along with alternative plans to maintain a strategic advantage. The conclusion emphasizes the need for Carsome to adhere to recommended strategies, develop strong teams, and capitalize on expansion opportunities.

Management

Background of the
company
Carsome is headquartered in Malaysia
The company is considered as the fastest
growing online car in South East Asia
The expansion of the company can be attributed
to the fact that it helps in connecting customers
on a worldly basis
The services provided by Carsome includes
inspection, valuation, bidding, payment as well
as logistics
The services provided is usually under 24 hours
from the complaint made

Issues faced by the company
The biggest issue faced by the company is on
the selling of its car
Issues faced by Carsome includes:
Acquiring the
customers
Developing business
Process of selling the
car

Contd..
Acquiring customers: Searching the customers that
can be made as a target for the purchase of the car. It
requires for the seller to move from one place to
another
Process of selling the car: The process of selling a car
can be lengthy owing to the search of customers,
completing the necessary paper works and inspection
Developing business: Development of business can be
critical if the process of selling is difficult. It may involve
running in loss for sometime before proper stability

Contd..
Acquiring the
customers
Make direct
engagement Build relationships Implement feedback

Contd..
Undertake licensing Identify customers Inspect the cars
before launch
Process of selling the
car

Contd..
Developing business
May engage in loss Provide outsourcing
of people
Develop
management

Analysi
s
The analysis of the opportunity that can be
derived by Carsome in Malaysia can be
analysed via the application of the Timmons
model.
The Timmons model states that entrepreneur
business does not begin with the plan of the
business
It is of the belief that entrepreneurship is
opportunity driven
For Carsome, this type of entrepreneurship
opportunity is required to be grabbed by the
employees

Timmons model
Communication
Business plan
Fits and Gaps
Creativity Leadership
Founder
Resource
s
Opportuni
ty
Team

Opportunity
The new development of the company can be
seen as an opportunity for increasing its
business
Comply with the legal laws of Malaysia
regarding the sale of cars
Reach the entire number of the population of
Malaysia
Contd..

Resources
Funded by the investors
Good quality workers
Involvement of local as well as foreign
workers
Readily available technological advancement
Contd..

Team
Teamwork between the employees
Every team in each departments are aligned
with one another
The teams involved at Carsome includes
production team, manufacturing team,
technical team, human resource team as well
as sales and financial team
Contd..

Creativity
Provides simple value of the product
Ensures that creativity is accounted for using
local technologies
Possess the ability to change the mass
marketing strategies of the world
Contd..

Leadership
Leadership can be considered as one of the
important aspects for Carsome
Carsome follows a democratic style
leadership
It allows meeting to be held between
employees and employers
It entertains ideas
For Carsome leaders take the upper hand
ahead of the managers
Contd..

Communication
Internal communication between the
employees and departments are strong
External communication with the customers
need to be increased
Feedback provided by customers are valued
Contd..

For understanding the value that Carsome can
have in the industry, it is necessary to conduct a
VRIO analysis
The VRIO analysis helps to understand the value
that a resource or capability can create
The rarity of the resource or capability is also
identified
The rate at which it can be imitated in the
market in analysed
The opportunity derived from the launch of the
product can be predicted
Contd..

VRIO analysis
Resource Value
(V)
Rarity
(R)
Imitabilit
y (I)
Opportunit
y (O)
Impact
Human
resource
8 8 5 9 Highly
competiti
ve
Use of
latest
technolog
y
8 7 8 8 Provides
advantag
e
Safety
precautio
n
measures
9 5 8 7 Can be
substitute
d

Application of the model
Acquiring customers: Customer acquisition was
correlated with the development of the human
capital. More human management meant more
time in searching and communicating with
customers
Process of selling the car: Process of selling cars
can be improved by analysing the quick manner in
which legality of the cars can be identified
Developing business: Analyse the quality of the
business and ensure that competitive level be
attained for the development of the business

For managing the business: Outsource the
business to gain better opportunities. Add
more departments
For managing the employees: Keep the
employees motivated and establish an
experienced recruitment facility
For maintaining customer satisfaction:
Enhance external communication with the
customers
For expanding the market: Make an initial
yet less investment in the foreign market
Recommendation

Performance matrix
Criteria Outsource Increase
departments
Cost effectiveness 5 3
Ease of
implementation
6 6
Business impact 3 9
Total 14 18
Business

Contd..
Employees
Criteria Motivation Recruitment
facility
Cost effectiveness 7 5
Ease of
implementation
4 4
Business impact 6 7
Total 17 16

Contd..
Customer satisfaction
Criteria Identify needs Maintain
communication
Cost effectiveness 4 8
Ease of
implementation
6 6
Business impact 5 7
Total 15 21

Contd..
Expansion
Criteria Low investment in
foreign market
High investment in
local market
Cost effectiveness 3 8
Ease of
implementation
7 5
Business impact 6 4
Total 14 17

Alternate plan
For managing the business: Recruit
experienced and efficient managers so that
business activities can be kept safe
For managing the employees: Provide legal
holidays and ensure requirement of the
employees be met
For maintaining customer satisfaction: Scan
the market for potential market developers
For expanding the market: Analyse the
external factors and the internal capabilities of
the organisation

Timeline
Business
Months
Importance
Low
Medium
High
3 6 9 1
2
Outsource
Increase
department

Employees
Contd..
Months
Importance
Low
Medium
High
3 6 9 1
2
Motivation
Recruitment facility

Contd..
Customer satisfaction
Months
Importance
Low
Medium
High
3 6 9 1
2
Identify
needs
Maintain
communication

Contd..
Expansion
Months
Importance
Low
Medium
High
3 6 9 1
2
Low foreign
market
investment
High local
market
investment

Based on the analysis conclusion can be
made about the opportunities of Carsome
The company need to maintain the
recommended strategies strictly
Carsome need to develop proper teams for
sustainable development
Alternate plans can help Carsome to maintain
potential strategic advantage
It possess the opportunity for expansion and
domination
Conclusion

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y
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