Essay about Xpresso Lube

819 Words Aug 16th, 2009 4 Pages
A) Background of the Company

Xpresso Lube is set up by Charlie Green. Charlie is a man of different talent. He has the knowledge of oil-change from his family members and also good in musician. Xpresso Lube was found because Charlie had an unpleasant experience while getting his car oil changed. He witnesses the lube technician was trying to “ripped off” an elderly lady. From that incident onwards, it gave him a clear idea of setting up his own oil-change station. From the oil change business, Charlie, wants to move customers in an out as quickly as possible. Speed of the service is the way how Xpresso Lube differentiates themselves from their competitors. Charlie designed the environment for his Business different the traditional
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Xpresso Lube at the same time provides a shuttle service to nearby University and State Capital to further allow the scheduling oil changes
 Perishability: The number of car lifts at the shop limits Xpresso Lube’s capacity. This oil change business also owns an auto repair facility next door so the two businesses can deploy mechanics between them to best utilize labor capacity.
 Intangibility: When an oil change is done, the customer cannot actually see the process and, after the service, the car’s performance probably will not be noticeably different.
 Heterogeneity: Different cars provide some variability in the oil change routine. Customers even come in for the coffee alone.

3. Characterize Xpresso Lube in regard to the nature of the service act, the relationship with customers, customization and judgment, the nature of demand and supply, and the method of service delivery.
 Xpresso Lube primary functions are changing oil. Changing oil services are the tangible action performed on the car but their secondary services is serving coffees and recognize the personal needs of customers.
 Xpresso Lube’s focus on fostering customer trust and provide pleasant waiting environment to have more long term customers.
 There is a significant demand fluctuation based on the obvious convenience of having the work performed after work or during the weekend. This peaked demand pattern can easily exceed Xpresso Lube’s

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