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Based on the given information and Pro Forma Income Statement for a hybrid auto care center business, would you pursue the opportunity by considering the
Based on the given information and Pro Forma Income Statement for a hybrid auto care center business, would you pursue the opportunity by considering the MIMIMUM CRITERIA
Customer benefit Lower price than equivalent service at the dealer Greater expertise. We service only hybrid-powered vehicles and have all the right equipment. Market size Currently (2004) 220,000 vehicles on the road- oyotas and Hondas. Ford planning to enter the market beginning 2005; GM and DaimlerChrysler to follow in 2006-2007. Industry estimates point to 1.7 million on the road by 2007, and 2.6 million by 2010 Market growth rate As of 2004, calculated at 23 percent compound annual rate Market share . Share of service business within a 20-mile radius estimated at 18 percent during the first five years. Competitors Main competition would be dealers, who would get most of the business during warranty periods. Other new hybrid specialty shops likely to open to service the rising demand. Few neighborhood garages would have the training or equipment to provide service. Customer awareness of need * Will become obvious as warranty periods expire and the high cost of dealer service becomes clear Customers All owners of hybrid-powered vehicles of all makes and models. Reaching customers Advertising to list of hybrid owners in the service area Free informational owner clinics "Understanding Your Hybrid Vehicle") Product utility Cost and qualityStep by Step Solution
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