A FEASIBILITY STUDY ON
ESTABLISHING AN AUTO REPAIR
SHOP WITH MOBILE APPLICATION
Dorithy Joy P. Angeles and John Ramel T. Cacas, and Moises Bryan J. Toregoza
Abstract - ACT! Auto Repair Shop is an auto repair shop
accompanied by a mobile application so that riders in
Tagaytay City can contact whenever their vehicles have
encountered problems along the way. This service provides
auto repair shop services with just a click from the mobile
application. Whenever a client requires services, an
experienced mechanic will come to aid from the main office
with full knowledge of what the client needs by the
information provided by the client from the mobile
application. ACT! Auto Repair Shop also accepts walk-in
repairs and will provide quality service as well.
I. INTRODUCTION
As time goes by, modernization progresses; along with
this, people's need for more convenient means of
transportation increases. Presently, a significant number
of people own a vehicle, either a car, motorcycle or any
other kind. Vehicles are simply machines; at times they
fail at the most unexpected situations. Worse scenario
is, when the unanticipated failure happens at an
unfamiliar place, when seeking assistance from others is
almost impossible, and when there is no vulcanizing or
repair shop within reach. In order to address difficulties
during unforeseen troubles among vehicles, an auto
repair shop mobile application is necessary.
Background of the Study
Modernization is continuous. In relation to this, there
many people who own different types of vehicles like
cars, motorcycles or any other kinds. However, failure
among these vehicles is inevitable. There are instances
that there is no one or nothing available to help in fixing
the trouble. Consequently, the drivers can contact mobile
applications of auto repair shops and services which can
locate the motorists’ whereabouts and to help as quick as
possible in cases of vehicle malfunctions like flat tire,
overheated engine, and the likes. Hence, the researchers
came up with the idea of establishing a Mobile
Application implementing auto repair shop and
services in Tagaytay, Cavite.
II. MARKETING STUDY
Service Background
Auto repair business is amongst the highly
thriving and profitable easy to setup auto services
related business idea can successfully start. Car
repairs are one business that never goes into
extinction. This is because daily, fleets of cars
are being added to the garages of people and so
whether it is a brand-new car or a fairly used one,
it can be sure that sometime in the future car
repair would be inevitable. With the introduction
of technopreneur ship, almost everything
nowadays can be found in mobile applications
ranging from services to products.
ACT! Auto Repair Shop is to provide
professional auto repair, maintenance and other
auto repair related services that will assist
businesses, individuals, households and non-
profit organizations who own automobiles in
ensuring that their automobiles are always in
good shape through a simple click from their
smart phones.
ACT! Auto Repair Shop provides a wide range
of auto repair services. These include:
 vulcanizing;
 battery charging;
 radiator cleaning;
 hose replacement;
 brake pad replacement;
 alternator replacement;
 alternator repair;
 overhaul starter; and
 battery replacement.
Each job or project will be on a reservation basis;
although the company will accept a small percentage of
drive-in repair work.
Service Rationale
ACT! Auto Repair Shop offers a wide range of services.
It is ultimately the goal of the company to offer a one-
stop facility for all auto servicing needs, including
brakes, transmission, and others. 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 with little value separation between
competitors, buyer power is also high. The barriers to
entry are moderately low, and the large number of
competitors in this field, including substitutes that the
pricing for such services is 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.
Market Share
Market share refers to a company's portion of sales
within the entire market in which it operates. It is the
percentage of the market for a product or service that a
company supply.
Table 2.1 Market Share
FD (AS) stands for Forecasted Demand (Annual
Sales)
FS stands for Forecasted Supply
UMS stands for Unsatisfied Market Share
CAP (AS) stands for Capacity (Annual Sales)
MS stands for Market Share
Service Strategy
It can be related to anything about vehicles,
driving, community, and shop such as:
- driver safety tips;
- car maintenance advice;
-  traveling tips;
- traffic news;
- photos of staff and location;
- customer satisfaction stories;
- info about local events;
- support for community initiatives; and
- offer specials and coupons for likes and
shares
Pricing Strategy
Setting a low price to enter a competitive market
and raising it later. It creates customer base
quickly due to low price of product because all
other factors take backseat when price offered by
the company for a product is low as majority of
customers are price conscious.
Promotions Strategy
Send Regular Emails - Use Wi-Fi Marketing or a
written form to collect email addresses from
customers and launch an email newsletter.

YEAR 2021 Send Personalized Service Reminders and Deals

FD (AS) FS UMS CAP (AS) MS via Email or Text - Send targeted, personalized
60,103,592 1,388,000 90% 4,536,000 7.55% reminders and deals to customers through either
YEAR 2022 email or SMS.
FD (AS) FS UMS CAP (AS) MS
61,093,176 1,536,000 90% 4,672,080 7.65% Encourage Customers to Write Reviews -
YEAR 2023 Another way to leverage user-generated content
FD (AS) FS UMS CAP (AS) MS to connect with more customers is by collecting
62,086,656 1,684,000 90% 4,812,242 7.75% and posting reviews about the business.
YEAR 2024
FD (AS) FS UMS CAP (AS) MS Create a Follow-Up Program - Another way to
63,076,240 1,832,000 90% 5,004,732 7.93% stay in touch with customers is following up with
YEAR 2025 the customers after visiting the location.
FD (AS) FS UMS CAP (AS) MS Use In-Store Digital Signage to Promote
64,067,772 1,980,000 90% 5,204,921 8.12% Products and Services - Digital screens allow to
customize waiting area television programming, quickly
update promotions, deliver animated and video
advertisements, and use programming as a silent,
continuous salesperson.
Location Strategy
Consider the Importance of the Location - The
customers have to find the specific location of the
business in order to take advantage of the services
provided by insurance company. Hence, it might be able
to save some money by not targeting the most premium
business locations.
Make It Convenient for Customers - In addition to
simply choosing a location that is easy to find, auto
repair businesses should also consider how many
customers need to drop their vehicles off and then have
options for walking to restaurants or other transportation
options.
Use Signage to Attract People - It is best to choose a
location that’s right on a main road so that people
driving by can see it and know exactly where are when
customer need automotive services.  likes:
III. TECHNICAL STUDY
Service Information
ACT! Auto Repair Shop aims to provide professional
auto repair, maintenance services and other auto repair
related services that will assist businesses, individuals,
households and non-profit organizations who own
automobiles in ensuring that their automobiles are
always in good shape.
Demographical Segmentation
Demographical Segmentation illustrates the geographical
variables and its descriptions. The target markets of the
study are the residence and motorists within Tagaytay
City, Cavite.
Psychographic Segmentation
The ACT! Auto repair shop, a center for highly thriving
and profitable easy to setup auto services within
Tagaytay City. It also offers a wide range of services. It
is ultimately the goal of the company to offer a one-stop
facility for all auto servicing needs, including brakes,
transmission, wheel alignment, etc.
Factor-rating systems are probably one of the most
widely used location selection techniques, because it can
combine diverse issues into an easy-to-understand
format. Generally, a factor rating system is a
weighted list of factors with the greatest
relevancy to the area and a range of values for
each factor. This method involves qualitative and
quantitative inputs, and evaluates alternatives
based on comparison after establishing a
composite value for each alternative.
Machines and Equipment Suppliers
Companies that manufacture goods that are used
in the production process of an automobile or
become part of an automobile, such that supply
goods directly or indirectly to an automobile
manufacturer and synonymous. The role of a
supplier in a business is to provide high-quality
products from a manufacturer at a good price to a
distributor or service establishments.
Stores that sell tools and other items used in
automotive parts, equipment, machines and the
- Autopards Aftermart
- Oreo Auto Supply
- New Banawe Auto Supply
Other Category:
- Shopee
- Lazada
- Mybenta.com
Service and Maintenance Schedule
Since the mission of ACT! Auto Repair Shop is
to response for emergency call, the shop is open
for 24-hour. At 24- hour auto servicing, the
company can offer its best to the customers.
Company handles every service; maintenance,
tires and repairs with the best parts, prices and
people around. With this, the company believes
that the customers will notice the establishment.
Scheduled maintenance tasks such as routine
inspections help detect minor problems before
developing into system failures. Since ACT! Auto
Repair Shop is open from Monday to Sunday,
operating 24-hours, cleaning maintenance would
strictly schedule every working day. A brief
downtime can result in significant losses due to
halted productivity and routine maintenance
would be scheduled regularly performed in order to
make sure each asset performs as needed. Each of these
machines needs to be perfectly calibrated to perform its
function at precisely right moment in exactly the right
way.
Waste Management
Waste reduction, the combination of waste prevention
and recycling efforts, makes good financial sense. In
addition to financial advantages, waste prevention
benefits the environment, benefits society, and company
establishes itself as a good community citizen,
providing immeasurable, lasting rewards.
Waste reduction begins by understanding what is being
purchased, how goods are used, and then is put to use by
finding ways to eliminate, reduce, reuse, and recycle
materials.
IV. FINANCIAL STUDY
Financial Assumptions
To determine the possible future revenues and
expenditures of the company, ACT! Auto Repair Shop
assumes the following:
- the business will adopt the calendar year
operation starting 2021 of January;
- working days are 7 days in a week; 4 weeks in a
month;
- workers will work 8 hours in a day;
- the overall projected investment cost is
P890,866.00;
- employee salaries are expected to increase to
2% every year;
- fixed assets will be depreciated over their life
span in accordance with depreciation table in
the appendices with zero residual value;
- useful life of 10 years for the office supplies,
equipment and machines;
- repairs and maintenance will be 5% of the total
carrying amount of the Property every year;
- unused supplies at the end of the year are 5% of
the total supplies available for use during the
year. Supplies purchases will increase 10%
every year.
- raw materials inventory will be maintained at
10% of the cost of sales;
- advertising and promotion expenses will
be P10,000 annually for five years; and
- waste management expenses were to
P2,800 annually for five years.
Initial Capital Requirements
The amount of PHP 890,866.00 is composed of
supplies, property, machines and equipment,
advance rental and security deposits and one year
working capital is needed as an initial
requirement to start up the business.
Sources of Funds
For a business to commence, funds must be
sources either through equity or capital
investment of the partners or both. In this case,
the proponents elected the use of only equity to
finance the business wherein each partner will
contribute an equal amount of Php 300,000.
V. MANAGEMENT STUDY
This business shall be named ACT! Auto Repair
Shop and is initially established as a partnership
with three (3) stakeholders who engage in a
business project by securing contracts. Profits
will be shared equally among partners and legal
agreements will be made that sets forth the
decision-making, admission of future partners
and dissolution of partnership. Transfer of shares
is subject for the unanimous approval of all
partners.
NAME NATIONALITY ADDRESS
ANGELES, FILIPINO MARAGONDO
DORITHY JOY N, CAVITE
P.
CACAS, JOHN FILIPINO TRECE
RAMEL T. MARTIRES
CITY, CAVITE
TOREGOZA, FILIPINO DASMARINAS,
MOISES LAGUNA
BRYAN J.
Table 5.1 Owners’ Information
Our Vision
ACT! Auto Repair Shop will be the preferred shop on
Tagaytay City by providing extraordinary customer that
exceeds customer expectations.
Our Mission
Auto Repair exists to help our customers care for and
extend the life of their automobile investment.
VI. SOCIAL ECONOMIC STUDY
Social Desirability Generation of Employment
The Philippines is seen booking the highest
unemployment rate in Southeast Asia. To be able to
help the employees to meet their future needs. Working
at a job, vocation or career is one of the critical pieces
for most of our lives. A job provides income that need
to pay for our basic needs. A job does more than
provide income for a person. A job also provides people
with a sense of fulfillment, productivity, and
purpose. Job openings from ACT! Auto Repair Shop
will give opportunities to the unemployed people
especially in Tagaytay City, Cavite who are starting to
look for jobs.
Economic Desirability Tax Generation
The business contributes to the government revenues in
the form of taxes paid. ACT! Auto Repair Shop will
have the obligation to pay the right amount of taxes to be
able to help bear the government. The tax collected is
used for the betterment of the economy and all living in
it. These tax payments from the business would help the
localities as well as the economy in its future project
especially for people that will benefit.
Corporate Social Responsibility
Every company manages its business processes to
produce an overall positive impact on society. Corporate
social responsibility is the practice of integrating social
and environmental goals into business operations. The
ACT! Auto Repair Shop will conduct activities for
employees such as seminar, trainings and team
buildings. It may also participate in activities such
sponsoring or organizing a humanitarian donation.
Impact Assessment
As this business would positively affect the income
generation of the Philippine economy, this would also
encourage potential entrepreneurs to engage to
such industry, and eventually offer more job
opportunities and increase employment rate as
well. The contribution of this proposed project is
to add values to the income and savings of the
Philippine economy.
ACT! Auto Repair Shop will contribute to the
community by bringing growth and innovation in
which the business was established. Job openings
from the business will helps to increase the
economic growth by giving opportunities to the
unemployed people who are starting to look for
jobs and to employed people who lost their jobs
and are looking for new ones. ACT! Auto Repair
Shop may also participate in activities such as
sponsoring or organizing a humanitarian
donation.
VII. CONCLUSION
Marketing Aspect
ACT! Auto Repair Shop is a business that
provides vehicle repair and other services to
customers or vehicle owners. Revenues are
generated from replacement part and mechanic
labor sale. The services can be in more detail,
such as emergency or scheduled maintenance,
brake repair, transmission, wheel alignments,
rims and tires and also comprehensive engine
repair. The researchers conducted a survey
among 365 respondents from different motorists
who travel within Tagaytay City and gathered
data to support the study. Data from the
questionnaire revealed that 64.4 % male and 35.6
% female motorists pass through the area. In
terms of age, 39.5 % is 22-26 years old; 23.6 % is
27-31 years old; 12.1 % is 32-36 years old; 11 %
17-21 years old, and others is 13.8% respectively.
When it comes to purpose for visiting Tagaytay
City, 67.7 % of the respondents are tourists; 16.2
% of the respondents come for work- related
concerns; 9.6 % of the respondents are residents
and below 10 % of the respondents visit their
relatives.
The researchers determined that there is 100%
gap between the demand and supply for this kind
of services. ACT! Auto Repair Shop has no direct
competitors that provide the same services.
With this, the proponents sought the marketability of the
proposed business to enter the market. The Gross profit
of the company will be derived from deducting all the
costs.
Technical Aspect
It appears based on the available information that
Location 2 at 1000 Luksuhin – Mangas Road, Alfonso,
Cavite, Philippines has the greatest composite value.
There are three possible locations for the business:
Location 1 is at 154 Tagaytay – Nasugbu Highway,
Tagaytay, Cavite; Location 2 is at 1000 Luksuhin –
Mangas Road, Alfonso Cavite; and Location 3 is at 18
Madison St. Alfonso, Cavite. The ACT! Auto Repair
Shop is located in a 00 sq. m at 1000 Luksuhin – Mangas
Road, Alfonso, Cavite, Philippines. The location was
selected through considered rated using Factor Rating. It
appears based on the available information that Location
2 at 1000 Luksuhin – Mangas Road, Alfonso, Cavite,
Philippines has the greatest composite value.
The evaluated suppliers that have the lowest unit price
offered for the raw materials and equipment is New
Banawe Auto Supply at 22 Banawe St. Quezon City, 111
Metro Manila; and for the supplies is Shopee.
The operating time of ACT! Auto Repair Shop is twenty-
four (24) hours.
Financial Aspect
The financial study on the proposed business ACT! Auto
Repair Shop is a viable business. The proponents
projected that the initial capital requirements cost is Php
890,866.00 to operate the business. The proponents
successfully created financial statements that will
represent the performance of the proposed business
within the five-year term. Assumptions are used to
determine the possible future revenues and expenditures
of the company. The proposed business is financially
viable with a payback period of ten months.
Management Aspect
The ACT! Auto Repair Shop is a general partnership
type of business that consists of three business owners.
The business is composed of a project manager,
two officers- in - charge, technician and
marketing assistant. ACT! Auto Repair Shop will
provide the detailed compensation and benefits to
the employees and believes that having qualified
individuals to fill positions contributes to the
overall success of the company.
Socio-economic Aspect
The ACT! Auto Repair Shop is not only for the
profit purposes but also for the improvement of
the welfare of the people through integrating
social and environmental goals into business
operations. Assessing the contribution of the
business in providing benefits to the economy,
environment and community helps the business to
have a high probability of success and be
accepted by the society.  People tend to have their
vehicles serviced at a shop close to their home or
place of employment. As a result, in an area
where new homes are being built or new
businesses are opening local business growth can
be positively impacted. 
ACKNOWLEDGEMENT
The success of this feasibility study would not
have been achieved without guidance and help of
several individuals who contributed and
extended their valuable assistance in the
preparation of this study. 
First and foremost, the proponents would like to
extend their utmost gratitude to their research
adviser; Engr. John Paolo P. Severino who was
very helpful, supportive and greatly shares
knowledge to them with patience and diligence
in helping them in completing the necessary
works throughout the study. Deepest gratitude is
also due to the members of the panel of
examiners, Engr. Annalyn P. Romero, Engr.
Jelyn M. Rodriguez, Engr. Joseph Vincent E.
David, and Engr. Laarnie P. Carlos for guiding
them and sharing great ideas that enable them to
improve and complete the research study. 
Special thanks also to Ann D. Famuleras and
Aldren Narzoles for all-out support, guidance
and sharing their knowledge. 
The researchers would like to express their love
and gratitude to their beloved family whom they
owe a lot and became their constant source of
support and encouragement, for their
unconditional understanding and motivation that inspire
them in the duration of their studies. 
Above all, the researchers would like to give their
sincerest and warmest appreciation to the Lord and
Savior, ALMIGHTY GOD, in securing their safety and
furnishing them the necessary resources that leads for
the accomplishment of this study and became their
constant source of their strength, knowledge, skills,
patience, health, and blessing, who always hears their
prayers, guides their path throughout the journey in life
and make this research study a success.