SPRING 2022 GRADUATION THESIS S-CAR A CAR CARE SERVICES Supervisors: Group members: Nguyen Quoc Bao (Mr) SS140294 : Tran Duy Thong* Vu Tung Linh (Mr) SS130338 : Lai The Nam SS130050 : Nguyen Thi Tuyet Minh SS130021 : Nguyen Le Minh Han SS130028 : Ngo Thanh Phuong 1 Acknowledgement In the process of completing this report, the team received a lot of help from everyone. First of all, the group would like to express their sincerest thanks to all individuals and organizations who wholeheartedly supported the group to complete this graduation thesis in the most practical way. Besides, it is indispensable for the support of two lecturers Nguyen Quoc Bao and Vu Tung Linh. Thank you for your enthusiasm in the process of supporting, giving many good and useful comments so that the team can complete this report to the fullest.
At the same time, the group also received many valuable comments from lecturers in the thesis grading committee of FPT University. All the valuable comments and encouragements of the teachers are great things to motivate the team. S-car would like to thank each member for their efforts in completing the graduation thesis. The group's project will have many shortcomings and limitations.
We hope that the authors will accept all valuable comments from readers. Once again, the team would like to thank everyone. 2 TABLE OF CONTENT CHAPTER 1: PROJECT INTRODUCTION 6 1. S-car - A Car care Service 7 1.
Market Problem Identification 7 1. Problems of Garage Owners 7 1. Problems of Car Users 8 1. Products and Services 11 CHAPTER 2 : MARKET ANALYSIS 16 2.1 Automobile Industry Overview 16 2.2 Automobile market in Vietnam 22 2.1 Car users Segmentation 31 2.
Customer journey 35 CHAPTER 3: COMPETITIVE ANALYSIS 38 3. Overview of competitors: 38 3.3 Technology Applies 46 3 CHAPTER 4: COMPANY & PRODUCT 48 4. Introduction: Mission and Vision 48 4. Business Model Canvas 48 4.3 Product Development 54 CHAPTER 5: KEY ACTIVITIES PLAN 55 5.1 Start-up Co-founder Team 86 5.3 Business Operation Plan 88 5.2 Operation Management Tools 89 i.
Operation Tracking Tool: 89 5.1: Garage owners list: 91 5.5 Human Resources Plan 94 5. Employees and Organization structure 94 5.2 The performance evaluation 98 5. Compensation and benefits 98 5. Corporate culture 100 CHAPTER 6: EXPANSION PLAN 101 CHAPTER 7: FINANCIAL PROJECTION 102 7.
Revenue Stream from Commission 102 4 7. Financial Statement Analysis 114 7. Balance Sheet 114 CHAPTER 8: RISK MANAGEMENT AND CONTINGENCY PLAN 116 5 CHAPTER 1: PROJECT INTRODUCTION 1. Background Owning a car has always been a trend in the world in general and in Vietnam in particular.
By 2025, the autonomous vehicle market will be worth some 400 billion U. dollars, globally, according to data provided by KPMG. According to an article by the Euromonitor International, over the period 2016-2025, the global automobile sector is expected to grow at a 5% compound annual growth rate (CAGR). Over the next five years, emerging nations are expected to lead demand growth for vehicles, while developed economies are expected to remain subdued due to crowded markets for new cars.
Asia Pacific is forecast to be the fastest growing automotive producing region globally by 2025, generating nearly 60% of global automotive output. With such rapid growth, car warranty facilities and garages are also making a big explosion. Over the past few years, automobile maintenance in Vietnam has been increasingly emphasised. Vietnam is also gradually presenting itself as a country of information technology, which also makes it easier for technology projects to reach the community.
However, in this market, there is still a lack of management methods that can apply technology to not only car information such as identity, condition and maintenance record but also allow car owners to choose and refer to many car repair garage systems with diverse services and products. Integrating technology into vehicle diagnostics and management is believed to be an effective way to repair vehicles. By digitizing the storage and management of car information through a cloud database, car owners will save time and effort in managing that information. In addition, providing a platform to help car owners easily choose a reputable garage is also a feature that brings convenience to car owners.
Beside that, in the context of Covid-19 pandemic, Social distancing has been in place for quite some time. And this has formed the habits of post-pandemic consumers, customers tend to have the habit of going online to look for information and solutions about services and goods they want 6 to buy more. This creates more opportunities for an online platform to help connect car owners and garages like S-car. Because of the above reasons, S-car was established, targeting the car repair and maintenance market, specifically, the niche market is old and used cars.
S-car - A Car care Service S-Car was established to provide convenience, safety and transparency in choosing a place for car maintenance and repair. Understanding that waiting for car maintenance takes a lot of time, the pre-booking feature was created to optimize customers' valuable time. Moreover, information about reputable garages is still fragmented across the Internet when users have to search for information from articles and groups to online forums and then choose a garage to trust, the garages review feature was formed to give user a multi-dimensional views with the support from S-Car in fraud cases to ensure the safety of users. Moreover, to avoid the loss of service history manuals, S-Car also offers an Electronic Maintenance Record feature (EMR) , which can track and retrieve vehicle repair histories by both car user and garages (via S-Car app) when necessary.
Market Problem Identification S-car have two main customer segments: Garages and car users so the problem identification part is also divided into 2 sections: problems from garage owners and problems from car users. Problems of Garage Owners Based on the online interviews with ten garages located in Da Nang City and two garages in Ho Chi Minh city, information storing method and car repair history are concluded to be the problems of garage owners ● Unable to manage appointments effectively 7 The first problem that we noticed when interviewing is that many garages do not have an effective appointment management tool. Quang Anh, owner of garage Hoang Anh Luc - a large garage in Da Nang city said that he often receives customers booking appointments directly via phone number or from Zalo, then will make notes in a book for staff to handle these problems. However, there were times when he couldn't remember to record all of those appointments, besides, customers who did not make an appointment also made up a large percentage.
Therefore, he shared that it is difficult to optimize car repair slots in the garage and if it is during peak hours, it can lead to customers having to wait for a long time or even lose customers. The second issue is operating costs. Maintaining the garage and running it requires a lot of capital. They have to pay for equipment, facilities for personnel.
Giau - owner of Khai Giau garage, Ho Chi Minh City, said that his garage is using 2 people just for answering phones, quoting and arranging maintenance schedules. Therefore, digital transformation is sooner or later for him to streamline his management. ● Vehicle's maintenance history From the interview, Mr. Quang Anh also shared the insight that it will be difficult to repair a car when not fully grasping the maintenance history of that car, because a car has a lot of parts with different levels of detail.
Therefore, without a complete vehicle maintenance history, the mechanic also spends time figuring out what is wrong with the car and sometimes the repair does not meet the customer's needs, causing them to return many times. Problems of Car Users ● Lack of comfort in choosing a reputable and suitable private garage Currently, there is no application to connect garage and car owners in the most convenient way. According to the survey, we found that the majority of customers will google and search for garages near their home, which can lead to incorrect information because most of what customers search for are articles. Advertisement reports are paid for by registered garages, not by users.
In addition, customers will post on forums and communities on social networking platforms to find information 8 about reputable garages or repair places, in addition, they also go to car forums such as autopro, autodaily for more information. Value Proposition for Car owners S-Car is an application that provides useful and convenient solutions to help connect car users with owners while bringing values of transparency, safety and high informativeness. ● Transparency According to staffing and training policy, S-Car will provide a professional working team knowledgeable about the Vietnamese car market to give the best assessments to select reputable garages into the system. In addition, common goods such as wax, coolant, car wash liquid,.
or common services such as car wash, engine cleaning,. will be publicly priced, which will help customers have time to choose the right service for their financial ability. And users who have experienced the service will make public reviews to accumulate incentives from S-Car. Moreover, each car will have a particular car ID, which enables the customers to look up their Car information, or Car maintenance's history by entering the Car ID account on the S-Car application.
● High informative To ensure that customers have the most convenient and seamless experience and avoid the trouble of having to search for too much information on their own when looking for a garage. The S-Car team will work directly with garage partners to ensure quality before putting it into the system, displaying a transparent list of garages, divided by area and city. Each customer account will be set up with electronic maintenance records (EMR) about the vehicle they own. When customers use the service, the garage will be accessed in order to shorten the time to diagnose the car's fault or give car care suggestions, buy and sell automotive parts more conveniently.
9 ● Safety S-Car provides customers with safety when using our service, with an electronic maintenance record (EMR) feature, which not only increases convenience because the information is stored in the cloud, but also a tool that help S-Car to protect the customer’s vehicles when there are dishonest or fraud car repair and maintenance cases from garages. Value Proposition for Garage owners As a platform that connects businesses and consumers, S-Car will enhance service efficiency with technology. Core features and values are designed to make the garage easy to find, attract potential customers and lessen effort to manage customer documentation. ● Effectiveness With the vision of being an effective, scientific and logical connectivity platform, S-Car's founding team worked with 10 garage business owners in Da Nang city and Ho Chi Minh city to understand and empathise for how a garage operates and problems that a garage can encounter at every stage of operation.
Since we already have certain insights into the needs of garage owners, We recommend a pre-booking feature to optimize repair slots in the garage. Through the evaluation and estimation with Mr. Khanh - owner of Ninh garage, this feature can help increase 20-30% output capacity for his garage. ● Relationship RLO Training/Bottom-Line Impact Group facilitator John Wafler, 2017 observed that “for many years, the auto repair industry has assumed average attrition rates in most independent shops at 20–25 percent.
With better tracking systems implemented, we are actually measuring rates as high as 50–60 percent for many independent shops”. Therefore, S-Car provides a combination of tools that allow monitoring and customer care more effectively to help the garage increase the retention rate. 10 According to a KPMG report, 75% of customers will prefer a brand when it has a loyalty program. S-Car provides a mechanism to accumulate points and exchange promotions when using services at garages.