Business Report on The Lube Mobile: A Business Model Evaluation

This business report evaluates "The Lube Mobile," a mobile auto repair service company, focusing on its potential within the Australian market. The report begins with an introduction to the automotive industry and identifies the problem of market share concentration. It then outlines the benefits of ...Read More

Running head: BUSINESS REPORT ON “THE LUBE MOBILE”
Business Report on "The Lube Mobile"
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1BUSINESS REPORT ON “THE LUBE MOBILE”
Table of Contents
Introduction..........................................................................................................................2
Problem identification.........................................................................................................2
Generated benefits...............................................................................................................3
Proposed business model canvas.........................................................................................4
Feasibility evaluation...........................................................................................................7
Conclusion...........................................................................................................................7
References............................................................................................................................8

2BUSINESS REPORT ON “THE LUBE MOBILE”
Introduction
After the emergence of the automobile an overall business opportunities have been
developed within the automobile sector as well as mobile auto repair business (Carayannis,
Sindakis & Walter, 2015). The objective of this paper is to conduct an evaluation of a new idea
along with developing a new business model canvas for a new automobile company in Australia.
The Lube Mobile Company is selected in this paper that is established in the year 2015 as a
mobile application that offers online mechanical services. Feasibility analysis of this new
mechanic business will also be carried out for evaluating critical success factor of the
organization.
Problem identification
The Australian auto repair industry is observed to be an open sector which has decreased
market share level concentration within the industry. Even though a large number of automobile
companies operate within the industry, revenue is also distributed between several auto garages
as well as mobile auto repair businesses (Gudiksen, 2015). It is gathered that there is absence of
auto company or repair shop which is responsible for more the 10% revenue generated by the
company. Due to this reason, the mobile mechanic businesses as well as small auto repair shops
are accountable for a great percentage of successful businesses within the auto repair services
industry. In such situation, the new businesses on the “The Lube Mobile” is deemed to be
implemented for the cause that it is likely to attain high growth within Australian automobile
service industry (Heikkilä, Bouwman, Heikkilä, Solaimani & Janssen, 2016). Another cause for
which the proposed business model canvas of this automobile company is considered being

3BUSINESS REPORT ON “THE LUBE MOBILE”
suitable is because the businesses and the consumers have indicated increased demand for
mobile auto repair services.
Another cause for which the new business approach is required within the auto repair
industry is that as increased per capita disposable income as well as corporate profit facilitates
the consumers in choosing suitable maintenance and auto repair services (Naggar, 2015). This is
considered in comparison to “do-it-yourself” auto repair services. Increasing levels of disposable
income are estimated to develop significantly which supports the consumers to spend a high
amount on maintenance and repair of its automobiles. It is deemed to be vital for identifying
mechanics, automobile engineers and technicians those do not attain enough finance in order to
rent a shop for business in mobile auto repair garage. Another aspects that is found is regarding
the fact that the auto mechanic personnel are roam on the highways with their mechanic toolbox
in the search of vans, cars and trucks those are remained broken down (Rask, 2014). For
surviving within the competitive business surrounding as mobile repair and Maintenance
Company requires an increased technical knowledge this know-how is required in the area of
offering standard auto repairs as well as with maintenance jobs that focuses on sustaining proper
change for developing repair and servicing charges.
Generated benefits
The Lube Mobile Company took into consideration the demands of customer along with
market within which it has its business operations through providing exceptional value-added
services (Ryu, Seo & Cho, 2016). The auto repair organization has considered providing
exceptional advantage to its consumers through introducing its mobile auto mechanic sustenance,
services as well as repair garage by means of offering introductory letters with brochures to

4BUSINESS REPORT ON “THE LUBE MOBILE”
every partner haulage along with transport companies. The organization also focuses on
providing advantages regarding the auto repair biding, services as well as maintenance contract
from the government and the cooperate organizations (Spieth, Schneckenberg & Ricart, 2014).
Advertising the new businesses and the developed business model is deemed to be advantageous
within important business automobile magazines, radio along with TV stations and the
newspapers. This also considers listing the organization’s business in the yellow page
advertisements that facilitates its clients to obtain additional advantages.
Distinct packages concerned with different categories of customers in order to work with
their budgets as well as offering additional services (Terrenghi, Schwarz, Legner & Eisert,
2017). The advantages which will be provided by The Lube Mobile are repairing along with
replacing automobile exhaust processes that considers repairing automotive transactions as well
as automotive brakes. The Lube Mobile Company will also focus on offering advantageous
services that includes automobile wheel alignments repair services, automotive transactions as
well as automotive electric repair value added services.
Consumer safety and satisfaction is another major benefit that is offered by The Lube
Mobile auto repair Service Company. Additional considerations for the consumers which needs
fleet service might also be made sure by the organization. This is for the reason that the auto
mechanics provides with more than two options which can be made is sustaining constant
maintenance of consumer product expectations (Ryu, Seo & Cho, 2016). This is done in a way
that the auto mechanics with support of highly skilled employees focuses on providing auto
repair along with effective after sales services.

5BUSINESS REPORT ON “THE LUBE MOBILE”
Proposed business model canvas
Key Partners
 Joint venture
 Suppliers
 Investors
 Advertisers
 Associates
Key Activities
 Consumer
service by
means of
identification
of the
requirements
of the
customers
 Acquiring
raw
materials
along with
advanced
machinery
 Better
performing
Supply chain
management
Value Propositions
 Wide range of
promotions for
attaining
customer
attention
 Operating in
Supermarkets
 Competitive
pricing
Consumer
Relationships
 Identification
based on the
culture and
consumer
segmentation
and
Personalizatio
n
 Consumer
satisfaction by
means of
mobile
mechanic
repair usage as
well as
maintenance
garage
 Reward
programs
 Quality

6BUSINESS REPORT ON “THE LUBE MOBILE”
management
Key Resources
 Brand
 Identification
of trends in
order to
introduce new
products that
supports
mechanic
service needs of
the consumers
 Ensuring
presence of
product in the
market
 Serves around
24 million
consumers each
week
 Developing
trends along
with
Channels
 Departmental stores
 Websites
 Mobile apps
Consumer Segments
 Small
businesses
 Households
 Wide market
for consumers
those search for
repairing and
replacing
vehicle engines
 customers

7BUSINESS REPORT ON “THE LUBE MOBILE”
developing
modern retail
model which is
followed by
people in its
stores
Cost Structures
 Salaries
 Rent
 Assets
 Offices
 Taxes
 Cost of goods
 Advertising and marketing
Revenue Streams
 Online sales
 Retail sales
Feasibility evaluation
In analyzing the new business idea of The Lube Mobile, it has been depicted that through
conducing this business of mobile repair line is observed to attain huge success (Traganos et al.,
2015). Through implementing these new businesses, the organization is expected to successfully
compete successfully in the industry in which auto repair organizations operate. Relied on these
aspects related with the auto repair business it can be indicated that for positive business changes
growth an own price strategy must be implemented by the organization. This facilitates in
developing the new idea of maintaining “The Lube Mobile” increasing feasible that can make

8BUSINESS REPORT ON “THE LUBE MOBILE”
sure offering benefits of reaching a huge consumer base in a short time span (Wrigley & Straker,
2016).
Conclusion
The objective of this paper is to conduct an evaluation of a new idea along with
developing a new business model canvas for a new automobiles company in Australia. It is
gathered from the report that the Australian auto repair industry is observed to be an open sector
which has decreased market share level concentration within the industry. Even though a large
number of automobile companies operate within the industry, revenue is also distributed between
several auto garages as well as mobile auto repair businesses. Due to this reason, the mobile
mechanic businesses as well as small auto repair shops are accountable for a great percentage of
successful businesses within the auto repair services industry.

9BUSINESS REPORT ON “THE LUBE MOBILE”
References
Carayannis, E.G., Sindakis, S. & Walter, C., (2015). Business model innovation as lever of
organizational sustainability. The Journal of Technology Transfer, 40(1), 85-104.
Gudiksen, S. (2015). Business model design games: Rules and procedures to challenge
assumptions and elicit surprises. Creativity and Innovation Management, 24(2), 307-322.
Heikkilä, M., Bouwman, H., Heikkilä, J., Solaimani, S., & Janssen, W. (2016). Business model
metrics: an open repository. Information Systems and e-Business Management, 14(2),
337-366.
Naggar, R. (2015). The creativity canvas: A business model for knowledge and idea
management. Technology Innovation Management Review, 5(7), 50.
Rask, M. (2014). Internationalization through business model innovation: In search of relevant
design dimensions and elements. Journal of International Entrepreneurship, 12(2), 146-
161.
Ryu, J. M., Seo, Y. M., & Cho, H. J. (2016). A Study on Business Model of Fintech-Focus on
the Business model canvas. Journal of Digital Convergence, 14(3), 171-179.
Spieth, P., Schneckenberg, D., & Ricart, J. E. (2014). Business model innovation–state of the art
and future challenges for the field. R&d Management, 44(3), 237-247.
Terrenghi, N., Schwarz, J., Legner, C., & Eisert, U. (2017). Business model management:
current practices, required activities and IT support.

10BUSINESS REPORT ON “THE LUBE MOBILE”
Traganos, K., Grefen, P. W. P. J., den Hollander, A., Turetken, O., & Eshuis, R. (2015). Business
model prototyping for intelligent transport systems: a service-dominant approach. Beta
Wroking Papers, Eindhoven University of Technology.
Wrigley, C., & Straker, K. (2016). Designing innovative business models with a framework that
promotes experimentation. Strategy & Leadership, 44(1), 11-19.