Define and apply key concepts of innovation in commercial, digital, service, and social contexts.
Investigate cases of disruptive innovation in different business and social contexts by applying lean entrepreneurship principles.
Demonstrate an understanding of and apply the stages of the innovation process, including learn how to forecast the success and market diffusion of your innovation. using business model design logic.
Identify and discuss the technical, financial and organisational constraints to innovation in markets that occur in real-life through the use of teamwork and brainstorming.
Market gap or problem
The modern business environment is very much competitive from all the aspects. This is why the various industries are looking to plan their success in a new and positive way. Many challenges are posed in front of them because of the tough challenges due to the creativity and innovation factors. It is very important to launch some new ideas into the business context so the business organizations get the needed profits within their industry. As a result of the growing competition, the organizations will definitely need to innovate some important processes to generate new business ideas. The concerned industries must look forward to focus on the innovation process. They have to look at the customer satisfaction process as well (Hill & Brierley, 2017). It will be the first priority for all the entrepreneurs to generate some new business ideas that will cater to the satisfaction of the customers (Best, 2012). They must be able to ensure the fact that the new business idea should be very much effective for the benefits of the customers. In this paper the business idea will focus on the Lube Mobile Auto Repair Services. The organization was set up in the year 2015. This is a mobile application that caters to the mobile application offering the customers with the online mechanical services. The feasibility of their business idea, the critical success factors and the business model canvas for this online mechanical business idea will be discussed.
It is very important to discuss about the market gap in this section. The paper focuses on the auto repairing industry in Australia. Recently, a fall in the market share has been noticed in this industry. There are several business organizations that work within the industry. However, the revenue from the industry is distributed between the several auto garages and mobile auto repairing auto repairing services. It has been studied and found that the auto repair shops are responsible for the revenue generation of the industry around 12-15%. This is why smaller auto repair shops or the mobile mechanic businesses can contribute to the revenue generation of the industry to a large number (Castillod, 2016). This can turn out to be a successful business as well. Keeping this mind, the Lube Mobile has come up on the focus for a successful venture into the automobile industry. This new mobile mechanic business can attain a high growth into the business as well. The researches have conveyed that the customers are inclined for the mobile auto repair services for the market gap already mentioned above. This is why it is very important to prepare the business model canvas for the business idea already mentioned.
There is another cause for this business idea to be implemented. The per capita disposable income within the country can be increased. The corporate facilities and profits are also in the favor of establishing this business idea firmly into Australia. The consumers are targeting to take the facilities from this business idea for the suitable maintenance in the mobile auto repair services. The ‘do-it-yourself’ auto repair services can be compared in the context. Another important thing in this context is the increasing disposable incomes (Izogo & Ogba, 2015). This disposable income level is very important because the consumer have to pay a high amount of money for the repair of the automobiles and its maintenance.
Benefits from business idea
The current problem is the fact that the professionals like the automobile engineers, technicians and mechanics do not have the proper amount of money for renting the shops for mobile auto repairing garage. This is why it is extremely important for them to begin the online mobile auto repair services. A very uncertain thing about getting the orders is the fact that the mechanics have to go around the highways to find any car, truck or bus is broken down. This is tiring from both mental and physical aspects. They carry their toolbox for the maintenance of the vehicles. However, these technical personnel must have the technological knowledge so they can offer proper auto repair services. The maintenance work will ensure the power change for the development of the repairing services with an increased amount of service charge (Duffy, 2014).
The benefits that are gained from the innovative business idea are very important factors for the overall success of the business. The Lube Mobile Auto repair services have always offered the value added facilities to the customers. They focus on meeting the demands of the customers and they go through a thorough market research for the company as well. Only then they are able to provide the customers the best services (Belz & Peattie, 2012). The demands of the consumers are increasing so they have to keep this in mind as well. They have planned to provide the customers with a range of facilities through the online mode that will prove to be important for their advantage. The managers of the company will provide the sustainability for the organization through online modes. They can provide the services with the introductory letters with several attractive brochures to the customers with the various transport and logistics companies.. This organization will provide the customers with the advantages like the repair building, getting the contracts from the government regarding the maintenance of the vehicles. They will look to make proper advertisements for their business and develop their business model for the betterment of their services (Jobber & Ellis-Chadwick, 2012). This will be highly important for gaining the competitive advantage over their rivals through the proper marketing promotions through the magazines, advertisements through the TV channels and Radio stations. They will also advertise their products through the digital marketing as well. The yellow page advertisements will also be helpful for the business idea to get the best results regarding the sales of their services (Armstrong et al., 2015).
The company Lube Mobile auto repair services will look to focus on the different set of customers that will be able to provide the better services within the budgets. One of the most important things for the company is providing the automobile exhaust processes. Thus they can be able to repair the automobile brakes and the automatic transactions through the online modes. They will also provide the customers with the wheel alignment repairing services and automotive electric value added services (Cuadros & Domínguez, 2014).
Some of the significant benefits from generating this business idea are looking after the consumer satisfaction and providing them with the proper safety. They are planning to offer the fleet service to the customers after they settle down with their business in a positive manner. They are very keen to meet the consumer product expectations by the way that the mechanics can provide them with the needed outcomes. The auto mechanics will be given the training and thus they will become very highly skilled. This will cater to the needs of meeting the demands of the customers. The auto repairing services will raise the revenue for the company.
Various stakeholders like the suppliers, buyers, investors, advertising agencies, partners for the joint venture (Muhtaroglu et al., 2013).
Providing the customers with the best benefits as they will identify the basic requirements by the customers indeed.
Promoting the services by making many advertisements and getting the attention of the customers, they will also opt to operate in the supermarkets and setting their pricing strategies in the competitive way (Campbell, Coff & Kryscynski, 2012).
The customers will be the small businesses and households, the people who are in search of the places for changing the vehicle engines and repairing them.
The brand value of the business has to grow, they will follow the trends and design the products according to the mechanical knowledge of the employees, they wanted to make sure that the product must be present in the market. The owners of the company want to serve millions of customers. They want to develop their retail model as well (Chaffey & Ellis-Chadwick, 2016).
Various departmental stores, their official website and mobile application software.
Salaries of the employees, rents for the offices, garages, goods costs, assets, costs for their advertising and marketing, corporate taxes payable to government (Chaffey & Ellis-Chadwick, 2016).
. Online sales and the retail sales.
They want to identify their customers based on the culture and target segments in the market, providing the consumers with the satisfaction by giving mobile mechanic repair usages, arranging for rewards programs and quality management within the company.
The business idea of the Lube Mobile auto repairing services can be considered as much feasible indeed. This business can be able to attain the success properly. The automobile repairing can be highly profitable if the marketing of the business is done online. If the company can implement this business idea in the best ways, they will be able to gain the highest profits (Cuadros & Domínguez, 2014). The company will be very much successful in the automobile industry as well. The business is expected reach the breakeven point in the second year after being set up. The price penetration strategy should be helpful for the profits indeed. Thus the online digital marketing and price penetration strategy can bring about the success in the business operations of the company.
This paper has discussed about the justification of the innovation of the new business idea. The chosen business idea is the Lube Mobile auto repairing services. This automobile business will be highly profitable and feasible if the marketing of the business is being done properly. The automobile industry in Australia is generally an open sector and this business idea is generated to fulfill the market gap already occurred. The mobile mechanic business and auto repairing services can really be profitable indeed. They can raise high revenues from business as well.
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