MMAS SWOT Analysis

1515 words (6 pages) Essay in Business

23/09/19 Business Reference this

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RUNNING HEADER: MURACA’S MOBILE AUTO SERVICE

Introduction

 The new business venture in which we will evaluate is Muraca’s Mobile Auto Service’s (MMAS). MMAS will provide the clients with affordable, convenient, and expert vehicle servicing at the requested place of the client. MMAS will be only a phone call away to ensure top auto care professionals can turn familiar places like homes, workplace, or gym parking lot into a full-service automotive repair center! MMAS will ensure every mechanic working on a vehicle is a certified Automotive Service Excellence (ASE) mechanic.

 MMAS will specialize in common maintenance practices similar to tune-ups, oil changes, diagnostic tests which will present more critical fixes upon demand. At MMAS we will always do our research, so our customers know we will give them the best advice possible, for instance, 85% of vehicles driving on today’s roadway either need their serpentine belt replaced or some maintenance done on their vehicle to ensure the longevity and safety of the vehicle remains unscathed (English, 2010).

Peace of Mind

 At MMAS we know not everyone takes care of their vehicles as the vehicle manufacturer’s state one should be in the automotive manual. Most of the time a vehicle will give individuals a problem while on the roadway at the most inconvenience of times costing at least a $100 minimum to tow the broken vehicle to a garage in which people are unsure of what type of service they may provide. MMAS can save an individual not only an added expense but also a peace of mind knowing their vehicle is in the excellent care of certified ASE mechanics.

 A customer owning a Ford F-350 and the vehicle starts to overheat due to a cracked radiator can cause havoc on a truck of that magnitude. The cost of a new radiator for the vehicle is on average $250.00, and if the owner does not stop driving the overheated vehicle, it will cause more damage than the vehicle has already sustained. A tow truck to take this type of vehicle can run north of $150, and the vehicle needs to be delivered to a diesel engine mechanic which may or may not be in the area. MMAS would make the location of this vehicle with not only an ASE certified mechanic but a certified ASE diesel mechanic, ensuring the vehicle is repaired on sight and if not MMAS will tow it free of charge giving the consume complete peace of mind.

Mission Statement

“To give the normal person convenient, affordable and expert vehicle servicing conveniently on their time and at their place!”

Logistics

 MMAS is being set to begin in the fourth largest city in America, Houston, TX area and will start with five mobile vehicles with certified ASE mechanics onboard, with a command center which will also keep an inventory of supplies for each vehicle, and more importantly a place where customers can reach our staff or have face to face interaction with staff. MMAS command center will also have multiple garages to house vehicles transported to our facility due to not being suitable to be fixed on sight.

 MMAS will use funds obtained through a small business loan and since MMAS is veteran owned and operated the loan can be allocated through the Veterans Affairs small business loans which can give added perks to MMAS including an astronomical difference in interest percentage saving us and in return we save the consumers. Veteran Affairs wants to ensure all veterans are set up to be successful and advised a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis shall be concluded to ensure the company can be profitable.

 SWOT presents a broad review of the strengths and weakness in a strategic environment while further highlighting these possibilities and threats that might already exist inside the working environment, and this analysis can be valuable in creating strategic alternatives and future courses of action options (Johnson, Whittington, Scholes, Angwin, Regner, 2014).

MMAS SWOT Analysis

Strength

Internal factors seem to be positive for MMAS. First identified item would be using certified Automotive Service Excellence (ASE) mechanics at MMAS. I placed this as a strength due to several top competitors in the automotive service industry not using ASE certified employees. An example of local competitors, Quick Lube oil changes facilities have a certified ASE mechanic as their manager, and his responsibility is to supervise non-certified mechanics working on vehicles to ensure nothing is getting damaged but he will not always be able to watch all mechanics, and the damage may have already occurred.

Weakness

Weakness category is found in quadrant two, and it identifies internal factors which would be viewed as unfavorable to MMAS. The first weakness with MMAS is never owning a business and having no idea the in and out of the everyday expenses of owning a business, for instance, having employees, or ensuring proper insurance for any damages that may occur during repairs of consumers vehicles. Stats are not great for the first time business entrepreneur stating, fewer than one out of every ten self-owned businesses are prosperous (Blodget, 2010).

Another weakness is having a significant startup cost for a company of this kind. Costs are calculated at $110,000 for machinery and $154,000 for a building/support functions, equaling $264,000 start-up costs, that is not taking in an account, employee salaries, and insurance. According to Glassdoor.com, a reasonable hourly rate for a certified ASE mechanic is $20/hr., which adds to $192,000 to pay five mechanics affecting the start-up cost to rise to an astronomical amount of $456,000.

Opportunities

 Opportunities are located in quadrant three and recognize external factors and could be viewed as a favorable factor for MMAS. The most significant probability connected with this business would be having an opportunity to grow. Amidst of very scarce to no competition, the ceiling is high for this business to develop with the fitting advising and financial support. Another opportunity is advertising while servicing vehicles everywhere we can service vehicles including major roadways and businesses. Having our vehicles continuously mobile allows us to advertise by having mobile billboards known as vehicles with our company’s name. If we wanted to have an opportunity away from MMAS as a whole, it would able to patent our vehicles making our vehicles one of a kind to ensure we can work on almost any vehicle no matter where and no matter the problem.

Threats

 Threat is the last of the four quadrants, and are external factors that are perceived as unfavorable to the business existence. The biggest threat to MMAS is Amazon, due to creating a service for mechanics to service vehicles at the consumers home or office. Amazon also makes an in-depth criminal history for every mechanic they will have a partnership, and money is handled through Amazon allowing no cash to be given to mechanics. Amazon gives consumers the peace of mind ensuring they will get the best service available.

Although I used Amazon’s service and a technician never came out multiple times causing Amazon to give me credit because of my horrible experience and this gave me the idea of MMAS. The last threat identified was the deficiencies of costs recognized and can be seen as a threat to the business. The undiscovered start-up expenses and the demand for this sort of service would be viewed as a threat to this company if not profitable but this could be any business.

SWOT Quadrant

Conclusion

After conducting the SWOT analysis, I have settled that I still have some further preparation to do on start-up expenses and sustainment expenses before advancing forth with this business adventure. I have presented a comprehensive breakout of prices below. Furthermore, I would look at recognizing a rough estimation of the need for this type of service. I think there are sufficient strengths and opportunities in this industry to proceed with a plan of action to discuss with a financial and business management firm to understand some more calculable numbers to guarantee I have all the pieces accounted for and before reviewing my business model to ensure it fits the new amounts.

References:

  • Blodget, H, (2010). DEAR ENTREPRENEURS: Here’s How Bad Your Odds of Success Are, retrieved from http://www.businessinsider.com/startup-odds-of-success-2013-5, accessed 24 Jan 19
  • English, B. (2010). 85% of Cars Need Repair or Preventive Maintenance, retrieved from www.britishamericanauto.com, accessed 24 Jan 19
  • Johnson, G., Whittington, R., Scholes, K. Angwin, D., Regner, P. (2014). Exploring Strategy Text & Cases, (10th ed). Accessed 25 Jan 19

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