DESCRIPTION OF THE BUSINESS

The Auto Repair market has a lot of competition, almost all offer repair and service features.
Very few have fully stocked parts owing to the proposed 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 us to turnaround jobs at a faster rate than the competition.
Wheel alignment and balancing facilities are also provided by our workshops along with their
primary services.

Our Business addresses the unmet need of having a quality auto repair workshop that
provides:

 Quick and quality repair & maintenance services;

 Wheel Alignment and Balancing Facilities
 High Pressure Cleaning Services;
 Easy access to new and used retail parts to meet the demands of the customer

The Auto Repair & Service Workshop business is a viable business provided that it is
operated with a good business acumen that involves having a thorough knowledge and
experience of the repair and service operations and also 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.
Market Entry Timing
The Ethiopia automobile industry has registered a considerable growth over the past couple
of
years. It was further estimated that the car industry experienced a growth rate of 51.4%
during
2009 to 2012(E.C) signifying an increasing demand for cars which is expected to continue in
the future (albeit at a lesser rate).
Unlike many countries, the Ethiopia car industry is unique in the sense that once the car
comes
on the road it is expected to run for an indefinite period requiring major repair and
maintenance
services throughout its operational life. Moreover there is a considerable demand for wheel
alignment and wheel balancing services, which is required by almost every car, whether new
or old. The roughness of the roads and continuous friction causes a continuous disruption to
the alignment and balancing of the wheels which require adjusting at least once every two
weeks for proper upkeep and maintenance.
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Conclusively it can be said that there exists an ample demand for quality repair and service
workshops in Ethiopia and also that the existing scenario provides conducive opportunities
for
entry into this business venture.
1.2 Process flow
The Auto Workshop that provides mechanical and denting & painting services follows a
basic
process flow as follows:
Mechanical Services:
Fig 1: Diagram of basic process flow for mechanical repairs
The above diagram illustrates the basic process flow for mechanical repairs. The customer
comes in with the mechanical problem wherein a job card is prepared based on the problems
faced by the customer. The foreman then checks the car to check for any additional problems.
The customer is then provided with time and cost estimates depending on the whether the
parts
need to be repaired or replaced. On agreement of the customer the job is allocated by the
foreman. It is necessary to test run the car before it is finally delivered to the client.
Denting & Painting:
Fig 2: Diagram of basic process flow for denting and painting
The above diagram illustrates the basic process flow for denting and painting. After the
estimation of time and cost the car is given to the Head Denter who reshapes the car back into
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form and hands it over to the painter. Initially the reshaped body is prepared for painting by
applying coating and then patches are filled which are then smoothened by rubbing. The body
is then painted and left for drying after which finishing touches and waxing is done to ensure
proper shine. In case of accidents, irreparable parts are replaced before making the final
delivery to the customer. However subletting activities can also take place during this process
on need basis.
PRODUCTS AND SERVICES
ENE will offer a wide range of services. It is ultimately the goal of the company to offer a onestop
facility for all auto-servicing needs, including brakes, transmission, wheel alignment, etc.
In this way, the company can offer greater perceived value for the customer than many other
shops, which specialize in certain areas.
The industry is highly competitive with suppliers having a great deal of power in setting and
negotiating the prices of their products and services to repair shops. In addition, because the
customers see the service as undifferentiated and a "commodity" with little value separation
between competitors, buyer power is also very high. Finally, the barriers to entry are
moderately low, and the large number of competitors in this field, including substitutes (such
as do-it-yourself work) means that the pricing for such services are very competitive. The only
way to have an advantage in this industry is a low cost leadership principal applied aggressively
or to create higher switching costs through the building of strong business to customer ties.
ENE will hire trained and certified mechanics that are able to prove they have superior
customer awareness and interaction. It is the company's professional people who will fulfill the
firm's contracts and goals. The largest part of the company's expenses will be in labor costs.