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UNIVERSITY OF CHITTAGONG
MBA program

Assignment topic: Automobile repairing business.

Name: Tusher Saha
ID: EV213071050
Batch: 18th (EV-MBA)
Section: B
Subject name: 612- Business Fundamental
Date: 01.04.2021
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Introduction

The automobile repairing industry in Bangladesh is growing at a very bright prospect. The
market potentiality, existing condition of automobile repairing business industry, recent
problem in automobile servicing business & solution of them. There is a chance of significant
improvements in customer service and financial profitability. To understand the situation of
automobile business in Bangladesh, various survey of customers, owners of different
automobile workshop; technicians involved in this business and spare parts seller was
conducted. Data published from business organization has been used for analyzing the
situation. I will try my best for executing them for the improvement in current service quality
level and improve my business performance.

Business Plan
The Auto Repair market has a lot of prospects as well as competition, almost all offer repair
and service features. Very few have fully stocked parts owing to the problem of tied up capital
in case of non-utilization of these parts. However, quick availability of parts supports the
service and repair departments by allowing them to turn around jobs at a faster rate than the
competition. The Auto Repair & Service Workshop business is a viable business if it is
operated with a good business acumen that involves having a thorough knowledge and
experience of the repair and service operations and managing the jobs with the right type of
skilled manpower. When these factors combine with good customer relationship management
and effective business development skills, the business is expected to give considerable profits
which are expected to grow over the years. The entrepreneur with potential investment
opportunity in setting up and operating an Auto Repair & Service Workshop offering various
services. This feasibility gives insight into various aspects of a Workshop setup including both
technical and general information for each service offered. Another critical factor is that the
entrepreneur must have effective marketing skills. These marketing skills should enable the
entrepreneur to carryout business development activities to target his potential customers and
to maintain his existing client base. Operating Profile by Shop Type.
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Skilled & Experienced Manpower

The knowledge and experience of the entrepreneur is not sufficient to run the business
smoothly. Provision of quality repair and service facilities solicits skilled and experienced
workmen which are an integral component of this business. It is important that the manpower
hired should have the required technical capability and customer relationship management
skills. Unless the entrepreneur is not skilled and does not possess the required know-how, he
would not be able to properly hire and manage the manpower. The automobile repairing
industry in Bangladesh is growing at a very rapid pace. The Compounded Annual Growth Rate
of repairing of automobiles during the last five years has been 10.6%. The growth rate of
passenger vehicles, 4-wheelers, three wheelers & 2 –wheelers, which are the major auto
segments, are 14.2%, 10.1%, 5.07 & 20.2, respectively. As a result, the service demand has
also been growing enormously. Due to advancement in vehicle technology the service
requirement of vehicles has also become technology dependent. Demand of highly skilled
workers is on the rise. Hence, there is growing demand for organized service retailing. Many
professional groups are entering into this area to grab this business opportunity by setting
upbuilt brand service outlets. The average auto shop in the survey had 6 -12 bays with 8 -20
full time technicians, and 2-4 full time service advisors. The higher sales outcomes were in the
larger shops, especially those open seven days a week. The large shops see a higher number of
vehicles than the national average of 3,709 annual transactions.

Industry trends
This is a large market that has seen an upturn in the last few years. Previously in Bangladesh
there was numerous no. of auto repair workshop which is called as garage. As illiterate
technicians: low quality machineries & service and tendency to corruption in those garages
soon customer is looking towards a well-equipped and trustworthy auto repair service center.
The beginning of year 2000 automobile repairing industry has gained so much popularity in
Bangladesh. Many new investors have come forwarded to invest in this industry. Now the
recently emerged & leading automobile companies of Bangladesh are given in the below.

Competition analysis
Competition in the repair and service market takes place along several dimensions. There is a
large degree of market segmentation in some sub-markets. For example, older cars are very
unlikely to be clients of authorized repairers. The competition for this sub-market mostly takes
place among independent Repairers. Similarly, for the very new cars, at least up to the present
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time, competition takes place mostly among authorized repairers and this is generally almost
exclusively intra-brand competition. Finally, there is competition between independent and
authorized repairers. The choice between these two types of repairers depends on the age of
the car, the make, and the type of fault, among other factors. The number of authorized repairer
contracts has increased. But this may not in fact reflect a true increase in the number of
competitors. From a competition perspective, thus, the increase in the number of authorized
repairer contracts could be considered neutral. Apart from the emergence of the stand-alone
authorized repairer (which is in part explained by the replacement of former sub-repairers), this
segment has seen relatively little evolution in terms of changes that may affect the degree of
competition among this type of repairers. In the independent segment the situation differs
markedly. There has been a rapid emergence of new formats, mostly reflecting the new
“franchise” approach adapted from the authorized segment into the independent segment. The
most important change is undoubtedly the drive by former stand-alone independent repairers
to become part of large repairer groups. Concurrently, consolidation across these groups is
taking place. These groups can offer low prices on parts (bulk buying, logistics, economies of
scale and scope) and better access to training, technical information, and parts distribution
systems. From the point of view of the more traditional segment of the independent service and
repair market, the rapid growth of these new organizational structures represents both a threat
and an opportunity. It is a threat in the sense that these groups compete directly with the
traditional independent repairers who generally have low investment capacity for either brand
recognition, technical information and tools or training, and are thus at a competitive
disadvantage. On the other hand, it is an opportunity because the costs of joining one of these
repairer groups are generally considered to be an order of magnitude smaller than those of
joining an authorized network. By joining, the former single-shop independents can enhance
their competitive position the authorized repairers.

Unfortunately, for most of these indicators can construct only approximate and indicative
values given the unavailability and/or unreliability of data. To assess the evolution of market
shares data on turnover of independent repairers and on turnover of authorized repairers is
needed. For independent repairers, a proxy turnover with the information from Euro stat on
total turnover of firms whose main activity is service, and repair of motor vehicles is done. For
the evolution of authorized repairers’ turnover, we received rather incomplete replies to our
questionnaire sent to vehicle manufacturers. In effect, it does not appear that turnover data is
recorded separately for car sales and car service and repair. This means that repairer turnover
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data, even for the few brands for which the information has been provided. The analysis of
market shares must in addition consider the evolution of the scope of repairs that independent
repairers are able to carry out. This scope is likely to be declining due to a lack of technical
information needed to repair increasingly complicated vehicles, including information
embedded in brand-specific Electronic repair tools.

Market size
Estimated market size for car service and repair show increase in.
(1) The growing size and average age of the Bangladesh’s car users.
(2) The evolution of repair processes –replacing parts instead of repairing them –and the higher
cost of parts in general.
(3) Vehicles have become more reliable, leading to increased service intervals.
(4) Measures adopted to increase road safety.
(5) Traffic control measures and reduced mileage per vehicle in some cases

Market needs analysis

The no of vehicle is overpopulated as the country is overpopulated. In some cases, many people
hold more than 2 or three cars in his own accordance. With the number of vehicle standard
workshop or repairing business are not growing simultaneously. Every day more than
thousands of vehicles are brought for repairing either for maintenance work or accidental
works. Now the following table is given to show the number of customers visited per day in
the workshop.
Table 3: Various customer visiting at various level of automobile company per day.

Types of Customer Top Level Company Local & midlevel

Individual customers 350 650
Business organizations 250 150
Transport vehicles 200 850
TOTAL 800 1650
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Conclusion
A comprehensive public transport policy coupled with good infrastructure is needed in
Bangladesh to meet the needs of its ever-increasing population. Automobile technology is in
the state of evolution. Introducing a new technology takes time to mature. Once the whole
infrastructure starts running smoothly, Dhaka will experience the pleasure of breathing cleaner
air. The government must gear up with its process of making the infrastructure available
anticipating the growing demands in future. In fact, a systematic study of demand–supply and
various components would be worthwhile.