Strategies for Developing Harry Auto Garage with Limited Capital

This report examines the development strategies for Harry Auto Garage, a small auto repair shop in South Eastern Melbourne, operating since 2015 with limited capital. The garage relies on word-of-mouth marketing and competitive pricing. The study aims to analyze external factors impacting the business and identify opportunities for growth. Key findings reveal that a lack of marketing expertise and capital hinder market expansion. Porter's Five Forces analysis assesses the competitive landscape, customer dynamics, and supplier power. Recommendations include implementing social media marketing, outsourcing non-core functions, leveraging pricing appeal, increasing service capacity, and fostering innovation to enhance the garage's market presence and profitability. The research methodology employed both primary data through interviews and secondary data from industry publications to provide a comprehensive understanding of the business environment and inform strategic recommendations.

How to develop small
business with less
capital
Harry Auto Garage

Executive Summary
 Harry Auto Garage is situated in South Eastern Melbourne in the
year 2015.
 Three main employees.
 The garage does not follow any marketing criteria.
 The company follows the mouth to mouth marketing for better
promotion.
 Low pricing is one of the biggest advantage.

Main Aim
 Analyze the external factors for the better upliftment of the
company, Harry Auto Garage.
 Thus, the external factors will be basically used in order to
evaluate the several options.

Introduction
 The company was started in the year 2015 situated in Australia.
 It operates as a very small scale mechanical shop which are very few in numbers.
 The basic customers for the company are the local and loyal customers.

 There is a huge competition in the market of automotive
mechanic companies.
 The company fails to gain market share because it fails to
expand the expenditure over the expenses.

Situation Analysis
 7-8 competitors.
 Some effective marketing techniques must be applied.
 Earlier, the company used to serve only 1-2 customers per day.
 Cab drivers who visit the garage once in a month are one of the
loyal customers of the company.

 Mouth to mouth advertising scheme has been used by the
company.
 The other competitors focuses on high amount of capital and
more number of employees.
 The company mainly focuses on the quality of the services
along with price.

Major stakeholders
 Stakeholders are those who basically emphasis on the major
decisions of the company.
 Stakeholders are always affected by the company either directly
or indirectly.
 The garage basically holds three major stakeholders which
include the owner, mechanic and apprentice.

 Thus, cab drivers who are considered as the major customers are considered to
be major stakeholder as well.
 It is also examined that the owner of the company has started the company by
taking loan from a bank.
 So, the bank is also considered to be stakeholder of the company, Harry Auto
Garage.

 Motivate and cultivate the performance of every employees in
order to develop the functional divisions of the company.
 The company also had to take permission from the local
municipal authority to set their business in the locality.

Research Objectives
 To examine the major factors which affects the growth and advancement of
garage.
 To examine the basic opportunities
 To gain profitability using a cost effective method in a better and effective way.
 To analyse all the situational factors related to customers, suppliers and major
competitors.

Research Methodology
 According to Kumar in 2019 (Kumar, 2019), Research methodology is the number
of strategies and steps taken by the company to focus on the specific topic.
 It helps to gain logical outcomes.
 Two research methodology were used i.e. primary and secondary.
 Primary research includes interviews and secondary data includes newspapers,
industry publications, articles and various journals (Quinlan, Babin, Carr and
Griffin, 2019).

 Sample size: 3
 Number of open ended questions: 5-6
 Qualitative data was collected from the responds of the
interviews.
 Quantitative data was collected from the figured and numbers.

Outcomes
 Moderate Internal rivalry exists inside the
company.
 There are huge number of competitors in the
market which creates a tough competition in
the market for the company.

 The availability of the substitute is very high.
 The threat of new entrants is moderate.

 The bargaining power of the buyers is moderate. Customers are
free to choose the most convenient garage according to them.
 The bargaining power of the suppliers is very low.

Results
 For now, there are 30 competitors in the garage industry situated in Melbourne
such as the Princes motor repair, Cox Auto services centre, ABS Collingwood,
Midas Kew, Rapid Tune Chadstone and so on.

 Lack of capital and low resources
is major obstacle for the company.
Along with this, lack of experts in
order to advertise the company is
also a major drawback for the
company.

Recommendations
 Social Media marketing
 Outsourcing
 Pricing appeal
 Increase the seating capacity
 Innovation and idea generation

References
Kumar, R., 2019. Research methodology: A step-by-step guide for
beginners. Sage Publications Limited.
Quinlan, C., Babin, B., Carr, J. and Griffin, M., 2019. Business
research methods. South Western Cengage.