Faben Venture Concept – Vinyl Wrap Application Center
Introduction: I have always had an interest in automobiles, and consider myself an automotive enthusiast. Following the automotive aftermarket for a while, I realized there is a unique, not fully utilized market available: vinyl wrap for privately owned vehicles.
Opportunity: The identified market for this venture are individual automotive enthusiasts, such as myself. Individuality is the unmet customer need that necessitates my venture. Current economic forces create the opportunity for my venture. According to statista.com, the revenue generated from the automotive body, paint, and interior repair market was 29.26 billion dollars in 2012. The expected revenue for this year is 34.43
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The primary source of income is the vinyl wrap application, which I will charge $15 dollars a square foot. A full body wrap will cost between $1,500 to $5,500, depending on quality of material, and complexity of design. My service will differentiate from the competition because I will utilize an assembly line approach that will shorten the installation to less than one day, rather than the normal two to three days. I will produce the vinyl wrap utilizing the current industry materials and technology. The main competitive disadvantage my business concept will encounter is public perception of vinyl wrap being an inferior product to paint. To counteract this perception, I will vinyl wrap my shuttles to display, and demonstrate that vinyl is a great alternative to paint. To prove this point, I have provided personal photographs of two vehicles: A blue Dodge Challenger with vinyl stripes and a white Ford Mustang with painted stripes. Though neither vehicle has a full body vinyl wrap, this example demonstrates how close vinyl simulates paint. As for the lifespan of vinyl, Fellers points out, “Typical outdoor vehicle wraps are good for 3-5 years, wrapped vehicles stored primarily indoors can last indefinitely” (1). Fellers also notes, “The single most important benefit of wrapping over custom painting is that a wrap can often be easily removed or repaired. In fact, wraps are often used to ‘protect’ the original
The industry estimates that architectural coatings and sundries (brushes, paint removers, thinners, etc.) created sales of $12 billion in 2004. The architectural paint coatings segment is also considered to be projected between the 1-2% increase per year. The demand level for this segment is reflected by the level of home improvements
Considering the high retail price of luxury vehicle Fisker Karma Sedan and prospective buyer behavior of electric passenger cars, we define the market for Sanger Automotive dealership are people living Lee and Collier counties with annual HH income exceeding $100,000.
The success of the automotive parts manufacturing industry is, at its core, is derived from the health of the automotive industry as a whole.
BDC is to review information from RR and propose an alternate PVC free sheet product. All seams are to be welded.
Look at your vehicle. What if your used car could look like it did when it came off the line years ago? What if you could spend just one weekend and as little as $60.00 to make your car look new again? Unfortunately, people dismiss the task of painting their own car immediately because they feel that they won’t have the skill, money or time to do it. On the contrary, painting your car can be one of easiest and most cost effective repairs you can make on your vehicle. With a little research and a trip to the hardware store, anyone can do it. Knowing how to paint your own vehicle will enable you to restore it to its prime and substantially increase its retail value even if you have little available resources
Given the current economic climate, I think the automotive industry is going to be faced with a multitude of economic challenges in the next five years. As an oligopoly market, the auto industry is highly dependent on strategic decision-making, and the demand for dynamic innovation and supply at decreased-cost levels. Competition, possibilities of turning substitutes into compliments, and shifts toward higher demand in services are seemingly leading factors that face the current automotive industry in the immediate future. But first, we should not ignore the political forces at play within the market.
Down the road Gill recognizes that the future of the Approved Auto Repair program will be certifying dealerships. The future development in cars will require up-to-date technology to sustain these vehicles. If these independent shops (many who are AAA approved shops) do not keep up they will go out of business. As a result, it is crucial to expand AAR to include dealerships. The exchange will still provide member discounts and allows for the shop to surpass the recurring complaints of
Autozone, the top retailer in the United States has always based its strategy on DIY customers with cars over seven years old (Parnell, 2014). As technology has evolved, cars have become more difficult to work on, hence, a new target market of do-it-for-me is continuing to grow. Sales of 2.3 billion were reported for the second quarter of 2017, and the company cited higher supply chain and shrink costs (Landis, 2017).
For Cleveland County which covers Flair Body Works stores in Moore and Norman had 4,802 total crashes in 2014. This number also includes fatal crashes and injury crashes. In addition, in Oklahoma County there was a total of 18,868 total crashes reported in 2014 where the Norman store is located. However, 18,868 is not the final number, this number will have to be multiplied by two because there is at least two people per accident making the total number of vehicles needing repair at least 37,736 vehicles. With that many vehicles plus the average collision claim being just over three thousand dollars, the total between Oklahoma and Cleveland County is 9.4 million dollars a month in possible repairs. Now this is the maximum number possible. For some people the accident totals their car, deciding then to acquire a new one instead of paying for repairs. However, if all vehicles get repaired then the max amount is 9.4 million dollars for accident repairs in the Cleveland and Oklahoma Counties. This sounds like a big number, however, in the market of auto repairs there are too many suppliers, therefore, the power of buyers kicks in. Just pulling a simple google search for auto repair shops inside those two counties brings up a list of over 100 shops around the metro area. Therefore, for Flair Body Works to stay competitive they need to either implement low cost leadership strategy, have product differentiation, or have a focused niche strategy. Thus setting them apart from the competition and gaining more of the market
Midas is an automotive business is a business that prides itself on customer relationship and reliability. Unlike a full service auto repair company, Midas services are a narrow range of service, such as, muffler repair, brakes and shock replacement. Just recently Midis decided to add tune-ups to their product line. In this essay, we will discuss the anticipation impacts (both positive and negative) upon operating efficiencies and recommend solution to minimize the negative impact. We will discuss whether or not operating practices should change to accommodate the tune-ups. We will also examine the reason, why input should be gathered from the shop owners and why type of input gathered. Last we will describe the process and steps needed to launch this new program.
For our initial strategy we wanted to choose a product line that would be most intriguing to customers in this poor economy. To initiate this we focused our products around better gas mileage, safety, and quality. In order to do this we needed to evaluate consumers’ needs and desires when making a high involvement purchase such as a car. We believe the best target market for this type of car would be a middle class family that does not have as much disposable income due to the recession in our economy.
The automotive industry designs, develops, manufactures, markets and sells motor vehicles, and is one of the world’s most important economic divisions by profits. This analysis focuses on the industry, specifically, manufacturers of automobiles. There are five competitors in the StratSim environment: Firm A, B, C, D, and E. Industry sales in the most recent year were 4.3 million units, with expected growth in the next year. Within this industry, there are seven-vehicle classes: Economy, Family, Luxury, Sports, Minivan, Truck, and Utility. There are two new classes with potential – if properly marketed.
The proliferation of packaging products and poor product education has caused confusion among end users. US consumers have traditionally viewed packaging supplies as a cost-saving resource. Consequently, packaging engineers are accorded high status and influence roughly 40% of material purchase decisions. The US market is experiencing strong growth, driven in part by the growth of the coated and uncoated bubbles segment. However, AirCap's market share remains stagnant (Appendix A).
Automotive Builders, Inc. (ABI) is a company that consistently changed its production lines and strategic goals relative to the needs of the times, starting out producing diesel engine parts for tractors in the 1940’s, switching over to the production of parts for military vehicles during World War II, and then, after the war, settling into its current placement in both the automobile and tractor industry. Due to the downturn in the economy and stiff and superior competition in both quality and price rising up from the Japanese who had recently entered into the industry, ABI is trying to find productive and innovative ways to improve sales and guarantee placement as the number one company in its
The company understands the risks for working with U.S. auto industry especially during the recession in 2008, so they venture out to produce four new business units to minimize it by looking into investing on early-stage opportunities.