Business Strategy - Jack

Five Forces Analysis - Jack

The auto repair industry is profitable.

Competitive Strategy - Jack

    Frank’s Auto Repair utilizes a competitive strategy based on differentiation, rather than cost, by offering high quality repairs such that customers will not have to return for service as quickly had they received the lowest cost repairs. This is a topic that arises often when discussing services with customers. Frank’s Auto Repair is transparent about their pricing and elaborates on the value gained from spending the extra money. Most customers appreciate this and are more inclined to spend more if it means saving money down the road, especially when coupled with strategies like a loyalty program, discounts for repeat customers, maintenance plans, and convenience services, all of which Frank’s Auto Repair employs.

    This competitive strategy based on differentiation and quality has several implications when it comes to handling threats from Porter’s Five Forces. The bargaining power of customers, threat of substitutes, threat of new entrants, and rivalries are all combated in a very similar way. This is done by offering high quality services and a customer-centered approach through loyalty points, complimentary multi-point vehicle check outs, pick-up and drop-off of both customers and their vehicles, and a personable in-shop experience. The bargaining power of suppliers is such a weak force in the auto industry due to how easy it is to change manufacturers or acquire after-market parts online for unique jobs.

Value Chain and Business Processes - Jack

    There are three major business processes at Frank’s Auto Repair which include the materials ordering process, operations process, and sales process. For this report, the focus will be on operations as a dynamic process and sales as a structured process. Operations at Frank’s Auto Repair have to be dynamic because every car is different. Anything beyond routine service check-ups and oil changes oftentimes require unique solutions. Sales is a very repeatable process at the shop.

Information Systems Support - Jack

    There are two main information systems at Frank’s Auto Repair used to facilitate business. The first is R.O. Writer which is an auto shop management software that gathers info about customers, parts, vehicles, suppliers, and billing into a central location. R.O. Writer’s utilization overlaps with both the operations and sales processes. The other program is called Podium which acts as an interface between the business and the customers. This program allows for communication to customers, automated messaging, service reminders, online review tracking, and scheduling among other things. Podium is used primarily in the sales process because it allows the business to easily contact customers and for customers to reach out and ask questions, provide feedback, or post reviews.

    One process at Frank’s Auto Repair that offers a competitive edge is their loyalty points program. Every dollar spent at the shop gives customers an equal amount in points. These points can be redeemed for discounts on future services. For a customer to switch shops, they’d have to forgo their earned points, which are really just unused discounts. Podium is the information system used to track these points.