Entrepreneurship: TRAC Roadside Assistance Feasibility Analysis Report

This report presents a comprehensive feasibility analysis for Top Road Assistance Company (TRAC), a new venture in the vehicle roadside assistance services market, primarily targeting the central and western regions of Saudi Arabia. The analysis covers the industry landscape, including market size, growth projections, and competitive dynamics. It details TRAC's target market, segmentation, and positioning, focusing on middle and higher-middle-income consumers in Tier 1 and Tier 2 cities. The report outlines the company's service offerings, including passenger towing, mobile mechanic services, and trip routing. It also includes a SWOT analysis, break-even analysis, and cost-benefit analysis to evaluate the financial viability. Furthermore, the report covers the design and development plan, operational plan, and growth strategy, including expansion into other regions and foreign markets. Finally, it provides an overview of the company's organizational structure and management team.

ENTREPRENEURSHIP
BY

COMPANY DESCRIPTION
• TOP ROAD ASSISTANCE COMPANY (TRAC) IS A NEW COMPANY
ENTERING INTO THE VEHICLE ROADSIDE ASSISTANCE SERVICES.
• THE COMPANY WILL SET UP ITS HEADQUARTERS IN RIYADH
• MAJORITY OF THE OPERATIONS OF THE COMPANY WILL BE
FOCUSED ON THE CENTRAL AND WESTERN REGION IN THE
SAUDI ARABIA.
• THREE MAJOR SERVICES PROVIDED
• PASSENGER TOWING SERVICES
• MOBILE MECHANIC SERVICES

INDUSTRY ANALYSIS
• THE GLOBAL VEHICLE ROADSIDE ASSISTANCE MARKET IS EXPECTED TO
GROW AT A CAGR OF 4% DURING 2019 TO 2023 (MARKETWATCH.COM,
2019).
• THERE HAS BEEN INCREASE IN PURCHASE OF VEHICLES IN COUNTRIES SUCH
AS UAE, INDIA, QATAR AND BRAZIL AFFECTS THE GLOBAL PASSENGER
VEHICLE SEGMENT
• THE VEHICLE ROADSIDE ASSISTANCE MARKET IN SAUDI ARABIA IS EXPECTED
TO REACH SAR2.1 BILLION BY THE END OF 2024 (BUSINESSWIRE.COM, 2018).
• THERE WAS A SIGNIFICANT DECLINE IN REVENUE IN THE INDUSTRY BETWEEN
THE YEAR OF 2014 TO 2017 DUE TO THE ECONOMIC CONDITIONS AND
WEAKENING OF OIL PRICES WHICH AFFECTED THE DISPOSABLE INCOME OF
THE CONSUMERS (BUSINESSWIRE.COM, 2018).

ORGANISATIONAL CHART
Board of Directors
(MOUSAD/ABDULRAHAMN/NAZER)
CEO
Marketing
Manager
Finance
Manager
Operational
Manager
Executive and
Sales Manager
Human resource
manager
Customer Care
Supervisor Service Supervisor
Customer care employees Service providers

SEGMENTATION, TARGETING AND POSITIONING
• THE TARGET MARKET INCLUDES THE CONSUMERS IN THE WESTERN AND
CENTRAL SAUDI WHERE THERE HAS BEEN SIGNIFICANT IN SALES OF
AUTOMOBILES AND URBANISATION OF THE REGIONS.
• THE COMPANY IS TARGETING MIDDLE AND HIGHER MIDDLE INCOME
GROUPS AS THE TARGET CONSUMERS IN THE TIER 1 AND TIER 2 CITIES
IN THESE REGION
• THESE CONSUMER SEGMENTS HAVE HIGHER DISPOSABLE INCOME IN THE
MARKET.

SERVICE DEMAND
• APPRECIATION RECEIVED DUE TO VARIETY OF SERVICES
• LOCAL CONSUMERS DO NOT HAVE THE ACCESS TO MECHANICS
AT ALL TIMES
• NEGATIVE FEEDBACK ON GIVING FIRST PRIORITY TO THE
MEMBERS

BREAK EVEN ANALYSIS
Year 0 Year 2 Year 4 Year 6
-$200,000.00
-$100,000.00
$0.00
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00

COST BENEFIT ANALYSIS
1 2 3 4 5 6 7 8 9
-$1
$0
$1
$2
$3
$4
$5 Cost Benefit Analysis: Option 1
Year

SWOT ANALYSIS
Strength Weaknesses
 New innovative approach
 Infrastructural capabilities
 Strong business model
 Competitive pricing
 Faster delivery services
 Unknown brand
 Lack of experience in the
market
 Lack of consumer base
Opportunities Threats
 High demand in the market
 Increase in consumers
using vehicles
 Expansion in the foreign
market
 Expansion in the other
regions within Saudi Arabia
 High market competition
due to presence of large
number of companies.
 Changes in the government
rules and regulations
 Changes in the political
stability

DESIGN AND DEVELOPMENT PLAN
• THE DESIGN AND THE DEVELOPMENT PHASE FOCUSED
ON FOLLOWING ASPECTS:
• DESIGNING THE WORKSPACE,
• SERVICE REQUIREMENT
• DEVELOPING THE APPLICATION FOR BOOKING AND LIVE
TRACKING SERVICES.

OPERATIONAL AND GROWTH PLAN
OPERATIONAL PLAN
• FOCUSES ON THE DAY TO DAY SERVICE
OPERATION
• STARTS FROM THE DISTRESS CALL / APP
BOOKING
• NOTIFICATIONS
• LIVE TRACKING FACILITY
• PAYMENT METHOD
GROWTH PLAN
• EXPANDING INTO OTHER REGIONS
IN SAUDI ARABIA
• EXPANDING TO FOREIGN MARKETS
• FRANCHISING AND