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Popular Motors

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Submitted By sundeepkbabu
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Popular Motors- Service division. Porter’s five force model. 1. Threat of New Entrants
There are lot many service companies right now competing with popular.
MGF and VTG are the other authorized dealers for Hyundai.

It is evident that with the increase of sales of Hyundai cars by Popular, there is an increase in cars serviced by Hyundai .
When we analyse the barriers to enter- it is relatively easier for the new entrants as they can service other car brands also, the capital requirements are not so large, there is practically no switching costs to buyers, the access to distribution (spare parts) are not that difficult.

2. Determinants of supplier power.
The supplier concentration is moderate. The Hyundai cars sold by popular automatically becomes the customers of services. The customers select the company based on the service they provide. Therefore it is important for Hyundai to help their dealers’ good service stations. The buyers switching cost is practically nil. The supplier can easily extend its service wing by supplying spare parts to the market. There is no near chance of forward integration from Hyundai .

3. Rivalry among existing firm
There are set of big authorized dealers- MGF, VTG etc as well as many small and big players.
The big players include- My car from TVS. The number of small players who service Hyundai is large.
The biggest advantage of servicing cars at Popular or any other authorized service centre is genuine parts and better service. The advantages that other players give to the buyers are flexible servicing.
The capacity of the firm is fixed and requires further capital investment to expand.
The exit costs for a player is not high as this sector is growing (car sales is increasing at the rate of 10-13% ref- SIAM ). And the real estate sector is difficult to handle.

4. Determinants of buyer power.
The number of buyers is very high compared to the sellers. But to acquire sufficient orders at a given time is the difficulty that the company faces.
The product differentiation is also very high- santro, santro zing, i10, i20, eon, verna, elantra, etc.
The buyer has a command as there as are many options before him.

5. Threat of substitute.
The substitute constitute of the unauthorized dealers and local mechanics.
The relative quality is low as they lack the costly machineries that these high tech

The Existing System

The existing system consists of online booking for cars.

This is definitely a help to the buyers. But here the buyer need to take his vehicle to the service station himself.
This is a problem area because the customers may find it difficult to find time for this. Many small players are winning market due to their better customer relations , that they built through picking and delivery of vehicles from your door step.
The popular Motors deals emergency helps do not provide towing services. In the west this is a major service that most service providers give.
Popular motors also do not specify any custom tasks and rates in their website. If it provides various packages that the customers.

The Suggested System

When we analyze the various options , I personally feel that door step picking and delivery will be appealing to the customers and a way to differentiate its services from the competitors.
There has been instances of vehicle robbery in the name of taking it to servicing. Popular motor can handle it in a professional way and overcome customer fears about such instances.
The model that is in my mind is similar to western union money transfer. When we complete a transaction we get a secret Id that we will give to our relatives. Our relatives can go to western union outlet in their town give the secret Id and identification proof and collect the money.

vehicles need.
The switching cost for the buyers is low.

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