Question

Lots of drivers (Male/Female) are facing huge challenges in terms of car maintenance and keeping their...

Lots of drivers (Male/Female) are facing huge challenges in terms of car maintenance and keeping their vehicles running smoothly. In todays global challenge of Covid-19, it is highly demanded that we get some services at the steps of our doors.
You are about to start your new business. Your target is a website or App that recruits tens of sharp talented mechanics, to serve different day to day tasks of car maintenance. Now you need to make a study using Porter model as following:

  1. Decide the Rivalry among companies in the industry
  2. What is the Bargaining power of suppliers?
  3. Is there any Bargaining power of buyers?
  4. How can you manage the Threat of new entrants?
    5. Threat of substitute products or services, would you be under the threat?

Homework Answers

Answer #1

Rivalry among companies in the industry:

It will be a weak force as there are rarely some firm which are offering such services at door steps. Generally, rivalry may be come from existing automobile companies as they may launch this potential business.  

Bargaining power of suppliers:

It will be strong one. As due to Covid 19 like situations companies selling auto parts , mobil oil and other instruments will lose its functioning then they might bargain for higher prices.

Bargaining power of buyers:

It will be weaker as customers or buyers have little or no options to get this at door steps in USA.

Threat of new entrants:

It will be higher one. New players will come due to low cost of entry to this specific auto service industry at door steps.  

Threat of substitute products or services:

Yes , new players, existing firms etc. will offer other form of getting this service. For example, By just one click , service men will come and do the needful about car services at door steps. This services may be offered with extended services offerings.

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