A FEASIBILITY STUDY ON

ESTABLISHING AN AUTO REPAIR

SHOP WITH MOBILE APPLICATION
Dorithy Joy P. Angeles and John Ramel T. Cacas, and Moises Bryan J. Toregoza

Abstract - ACT! Auto Repair Shop is an auto repair shop Application implementing auto repair shop and
accompanied by a mobile application so that riders in services in Tagaytay, Cavite.
Tagaytay City can contact whenever their vehicles have
encountered problems along the way. This service provides II. MARKETING STUDY
auto repair shop services with just a click from the mobile
application. Whenever a client requires services, an Service Background
experienced mechanic will come to aid from the main office
Auto repair business is amongst the highly
with full knowledge of what the client needs by the
information provided by the client from the mobile
thriving and profitable easy to setup auto services
application. ACT! Auto Repair Shop also accepts walk-in related business idea can successfully start. Car
repairs and will provide quality service as well. repairs are one business that never goes into
extinction. This is because daily, fleets of cars
I. INTRODUCTION are being added to the garages of people and so
As time goes by, modernization progresses; along with whether it is a brand-new car or a fairly used one,
this, people's need for more convenient means of it can be sure that sometime in the future car
transportation increases. Presently, a significant number repair would be inevitable. With the introduction
of people own a vehicle, either a car, motorcycle or any of technopreneur ship, almost everything
other kind. Vehicles are simply machines; at times they nowadays can be found in mobile applications
fail at the most unexpected situations. Worse scenario ranging from services to products.
is, when the unanticipated failure happens at an ACT! Auto Repair Shop is to provide
unfamiliar place, when seeking assistance from others is professional auto repair, maintenance and other
almost impossible, and when there is no vulcanizing or auto repair related services that will assist
repair shop within reach. In order to address difficulties businesses, individuals, households and non-
during unforeseen troubles among vehicles, an auto profit organizations who own automobiles in
repair shop mobile application is necessary. ensuring that their automobiles are always in
Background of the Study good shape through a simple click from their
smart phones.
Modernization is continuous. In relation to this, there
many people who own different types of vehicles like ACT! Auto Repair Shop provides a wide range
cars, motorcycles or any other kinds. However, failure of auto repair services. These include:
among these vehicles is inevitable. There are instances
 vulcanizing;
that there is no one or nothing available to help in fixing
 battery charging;
the trouble. Consequently, the drivers can contact mobile
 radiator cleaning;
applications of auto repair shops and services which can
 hose replacement;
locate the motorists’ whereabouts and to help as quick as
 brake pad replacement;
possible in cases of vehicle malfunctions like flat tire,
 alternator replacement;
overheated engine, and the likes. Hence, the researchers
 alternator repair;
came up with the idea of establishing a Mobile
 overhaul starter; and
 battery replacement.
Each job or project will be on a reservation basis; FD (AS) stands for Forecasted Demand (Annual
although the company will accept a small percentage of Sales)
drive-in repair work. FS stands for Forecasted Supply
UMS stands for Unsatisfied Market Share
Service Rationale
CAP (AS) stands for Capacity (Annual Sales)
ACT! Auto Repair Shop offers a wide range of services. MS stands for Market Share
It is ultimately the goal of the company to offer a one-
Service Strategy
stop facility for all auto servicing needs, including
brakes, transmission, and others. In this way, the It can be related to anything about vehicles,
company can offer greater perceived value for the driving, community, and shop such as:
customer than many other shops which specialize in
- driver safety tips;
certain areas.
- car maintenance advice;
The industry is highly competitive with suppliers having -  traveling tips;
a great deal of power in setting and negotiating the - traffic news;
prices of their products and services to repair shops. In - photos of staff and location;
addition, because the customers see the service as - customer satisfaction stories;
undifferentiated with little value separation between - info about local events;
competitors, buyer power is also high. The barriers to - support for community initiatives; and
entry are moderately low, and the large number of - offer specials and coupons for likes and
competitors in this field, including substitutes that the shares
pricing for such services is very competitive. The only Pricing Strategy
way to have an advantage in this industry is a low-cost
leadership principal applied aggressively or to create Setting a low price to enter a competitive market
and raising it later. It creates customer base
higher switching costs through the building of strong
quickly due to low price of product because all
business to customer ties. other factors take backseat when price offered by
Market Share the company for a product is low as majority of
customers are price conscious.
Market share refers to a company's portion of sales
Promotions Strategy
within the entire market in which it operates. It is the
percentage of the market for a product or service that a Send Regular Emails - Use Wi-Fi Marketing or a
company supply. written form to collect email addresses from
Table 2.1 Market Share customers and launch an email newsletter.

YEAR 2021 Send Personalized Service Reminders and Deals

FD (AS) FS UMS CAP (AS) MS via Email or Text - Send targeted, personalized
60,103,592 1,388,000 90% 4,536,000 7.55% reminders and deals to customers through either
YEAR 2022 email or SMS.
FD (AS) FS UMS CAP (AS) MS
61,093,176 1,536,000 90% 4,672,080 7.65% Encourage Customers to Write Reviews -
YEAR 2023 Another way to leverage user-generated content
FD (AS) FS UMS CAP (AS) MS to connect with more customers is by collecting
62,086,656 1,684,000 90% 4,812,242 7.75% and posting reviews about the business.
YEAR 2024
FD (AS) FS UMS CAP (AS) MS Create a Follow-Up Program - Another way to
63,076,240 1,832,000 90% 5,004,732 7.93% stay in touch with customers is following up with
YEAR 2025 the customers after visiting the location.
FD (AS) FS UMS CAP (AS) MS Use In-Store Digital Signage to Promote
64,067,772 1,980,000 90% 5,204,921 8.12% Products and Services - Digital screens allow to
customize waiting area television programming, quickly combine diverse issues into an easy-to-understand
update promotions, deliver animated and video format. Generally, a factor rating system is a
advertisements, and use programming as a silent, weighted list of factors with the greatest
continuous salesperson. relevancy to the area and a range of values for
Location Strategy each factor. This method involves qualitative and
quantitative inputs, and evaluates alternatives
Consider the Importance of the Location - The based on comparison after establishing a
customers have to find the specific location of the composite value for each alternative.
business in order to take advantage of the services
provided by insurance company. Hence, it might be able Machines and Equipment Suppliers
to save some money by not targeting the most premium
business locations. Companies that manufacture goods that are used
in the production process of an automobile or
Make It Convenient for Customers - In addition to
become part of an automobile, such that supply
simply choosing a location that is easy to find, auto
goods directly or indirectly to an automobile
repair businesses should also consider how many
customers need to drop their vehicles off and then have manufacturer and synonymous. The role of a
options for walking to restaurants or other transportation supplier in a business is to provide high-quality
options. products from a manufacturer at a good price to a
distributor or service establishments.
Use Signage to Attract People - It is best to choose a
location that’s right on a main road so that people Stores that sell tools and other items used in
driving by can see it and know exactly where are when automotive parts, equipment, machines and the
customer need automotive services.  likes:
III. TECHNICAL STUDY - Autopards Aftermart
Service Information - Oreo Auto Supply
- New Banawe Auto Supply
ACT! Auto Repair Shop aims to provide professional Other Category:
auto repair, maintenance services and other auto repair
related services that will assist businesses, individuals, - Shopee
households and non-profit organizations who own - Lazada
automobiles in ensuring that their automobiles are - Mybenta.com
always in good shape. Service and Maintenance Schedule

Demographical Segmentation Since the mission of ACT! Auto Repair Shop is

to response for emergency call, the shop is open
Demographical Segmentation illustrates the geographical for 24-hour. At 24- hour auto servicing, the
variables and its descriptions. The target markets of the company can offer its best to the customers.
study are the residence and motorists within Tagaytay Company handles every service; maintenance,
City, Cavite. tires and repairs with the best parts, prices and
Psychographic Segmentation people around. With this, the company believes
that the customers will notice the establishment.
The ACT! Auto repair shop, a center for highly thriving
and profitable easy to setup auto services within Scheduled maintenance tasks such as routine
Tagaytay City. It also offers a wide range of services. It inspections help detect minor problems before
is ultimately the goal of the company to offer a one-stop developing into system failures. Since ACT! Auto
facility for all auto servicing needs, including brakes, Repair Shop is open from Monday to Sunday,
transmission, wheel alignment, etc. operating 24-hours, cleaning maintenance would
strictly schedule every working day. A brief
Factor-rating systems are probably one of the most downtime can result in significant losses due to
widely used location selection techniques, because it can halted productivity and routine maintenance
would be scheduled regularly performed in order to - advertising and promotion expenses will
make sure each asset performs as needed. Each of these be P10,000 annually for five years; and
machines needs to be perfectly calibrated to perform its - waste management expenses were to
function at precisely right moment in exactly the right P2,800 annually for five years.
way. Initial Capital Requirements

Waste Management The amount of PHP 890,866.00 is composed of

supplies, property, machines and equipment,
Waste reduction, the combination of waste prevention
advance rental and security deposits and one year
and recycling efforts, makes good financial sense. In
working capital is needed as an initial
addition to financial advantages, waste prevention
requirement to start up the business.
benefits the environment, benefits society, and company
establishes itself as a good community citizen, Sources of Funds
providing immeasurable, lasting rewards.
For a business to commence, funds must be
Waste reduction begins by understanding what is being sources either through equity or capital
purchased, how goods are used, and then is put to use by investment of the partners or both. In this case,
finding ways to eliminate, reduce, reuse, and recycle the proponents elected the use of only equity to
materials. finance the business wherein each partner will
contribute an equal amount of Php 300,000.
IV. FINANCIAL STUDY
V. MANAGEMENT STUDY
Financial Assumptions
This business shall be named ACT! Auto Repair
To determine the possible future revenues and
Shop and is initially established as a partnership
expenditures of the company, ACT! Auto Repair Shop
with three (3) stakeholders who engage in a
assumes the following:
business project by securing contracts. Profits
- the business will adopt the calendar year will be shared equally among partners and legal
operation starting 2021 of January; agreements will be made that sets forth the
- working days are 7 days in a week; 4 weeks in a decision-making, admission of future partners
month; and dissolution of partnership. Transfer of shares
- workers will work 8 hours in a day; is subject for the unanimous approval of all
- the overall projected investment cost is partners.
P890,866.00;
- employee salaries are expected to increase to
2% every year; NAME NATIONALITY ADDRESS
- fixed assets will be depreciated over their life
span in accordance with depreciation table in ANGELES, FILIPINO MARAGONDO
the appendices with zero residual value; DORITHY JOY N, CAVITE
- useful life of 10 years for the office supplies, P.
equipment and machines; CACAS, JOHN FILIPINO TRECE
- repairs and maintenance will be 5% of the total RAMEL T. MARTIRES
carrying amount of the Property every year; CITY, CAVITE
- unused supplies at the end of the year are 5% of TOREGOZA, FILIPINO DASMARINAS,
the total supplies available for use during the MOISES LAGUNA
BRYAN J.
year. Supplies purchases will increase 10%
Table 5.1 Owners’ Information
every year.
- raw materials inventory will be maintained at Our Vision
10% of the cost of sales;
ACT! Auto Repair Shop will be the preferred shop on encourage potential entrepreneurs to engage to
Tagaytay City by providing extraordinary customer that such industry, and eventually offer more job
exceeds customer expectations. opportunities and increase employment rate as
well. The contribution of this proposed project is
Our Mission
to add values to the income and savings of the
Auto Repair exists to help our customers care for and Philippine economy.
extend the life of their automobile investment.
ACT! Auto Repair Shop will contribute to the
VI. SOCIAL ECONOMIC STUDY community by bringing growth and innovation in
which the business was established. Job openings
Social Desirability Generation of Employment from the business will helps to increase the
economic growth by giving opportunities to the
The Philippines is seen booking the highest
unemployed people who are starting to look for
unemployment rate in Southeast Asia. To be able to
jobs and to employed people who lost their jobs
help the employees to meet their future needs. Working
and are looking for new ones. ACT! Auto Repair
at a job, vocation or career is one of the critical pieces
Shop may also participate in activities such as
for most of our lives. A job provides income that need
sponsoring or organizing a humanitarian
to pay for our basic needs. A job does more than
donation.
provide income for a person. A job also provides people
with a sense of fulfillment, productivity, and VII. CONCLUSION
purpose. Job openings from ACT! Auto Repair Shop Marketing Aspect
will give opportunities to the unemployed people
especially in Tagaytay City, Cavite who are starting to ACT! Auto Repair Shop is a business that
look for jobs. provides vehicle repair and other services to
customers or vehicle owners. Revenues are
Economic Desirability Tax Generation generated from replacement part and mechanic
labor sale. The services can be in more detail,
The business contributes to the government revenues in
such as emergency or scheduled maintenance,
the form of taxes paid. ACT! Auto Repair Shop will
brake repair, transmission, wheel alignments,
have the obligation to pay the right amount of taxes to be
rims and tires and also comprehensive engine
able to help bear the government. The tax collected is
repair. The researchers conducted a survey
used for the betterment of the economy and all living in
among 365 respondents from different motorists
it. These tax payments from the business would help the
who travel within Tagaytay City and gathered
localities as well as the economy in its future project
data to support the study. Data from the
especially for people that will benefit.
questionnaire revealed that 64.4 % male and 35.6
Corporate Social Responsibility % female motorists pass through the area. In
terms of age, 39.5 % is 22-26 years old; 23.6 % is
Every company manages its business processes to 27-31 years old; 12.1 % is 32-36 years old; 11 %
produce an overall positive impact on society. Corporate 17-21 years old, and others is 13.8% respectively.
social responsibility is the practice of integrating social When it comes to purpose for visiting Tagaytay
and environmental goals into business operations. The City, 67.7 % of the respondents are tourists; 16.2
ACT! Auto Repair Shop will conduct activities for % of the respondents come for work- related
employees such as seminar, trainings and team concerns; 9.6 % of the respondents are residents
buildings. It may also participate in activities such and below 10 % of the respondents visit their
sponsoring or organizing a humanitarian donation. relatives.
Impact Assessment
The researchers determined that there is 100%
As this business would positively affect the income gap between the demand and supply for this kind
generation of the Philippine economy, this would also
of services. ACT! Auto Repair Shop has no direct The business is composed of a project manager,
competitors that provide the same services. two officers- in - charge, technician and
marketing assistant. ACT! Auto Repair Shop will
With this, the proponents sought the marketability of the provide the detailed compensation and benefits to
proposed business to enter the market. The Gross profit the employees and believes that having qualified
individuals to fill positions contributes to the
of the company will be derived from deducting all the
overall success of the company.
costs.
Socio-economic Aspect
Technical Aspect
The ACT! Auto Repair Shop is not only for the
It appears based on the available information that profit purposes but also for the improvement of
Location 2 at 1000 Luksuhin – Mangas Road, Alfonso, the welfare of the people through integrating
Cavite, Philippines has the greatest composite value. social and environmental goals into business
operations. Assessing the contribution of the
business in providing benefits to the economy,
There are three possible locations for the business:
environment and community helps the business to
Location 1 is at 154 Tagaytay – Nasugbu Highway,
have a high probability of success and be
Tagaytay, Cavite; Location 2 is at 1000 Luksuhin – accepted by the society.  People tend to have their
Mangas Road, Alfonso Cavite; and Location 3 is at 18 vehicles serviced at a shop close to their home or
Madison St. Alfonso, Cavite. The ACT! Auto Repair place of employment. As a result, in an area
Shop is located in a 00 sq. m at 1000 Luksuhin – Mangas where new homes are being built or new
Road, Alfonso, Cavite, Philippines. The location was businesses are opening local business growth can
selected through considered rated using Factor Rating. It be positively impacted. 
appears based on the available information that Location ACKNOWLEDGEMENT
2 at 1000 Luksuhin – Mangas Road, Alfonso, Cavite,
Philippines has the greatest composite value. The success of this feasibility study would not
have been achieved without guidance and help of
The evaluated suppliers that have the lowest unit price several individuals who contributed and
extended their valuable assistance in the
offered for the raw materials and equipment is New
preparation of this study. 
Banawe Auto Supply at 22 Banawe St. Quezon City, 111
Metro Manila; and for the supplies is Shopee. First and foremost, the proponents would like to
extend their utmost gratitude to their research
The operating time of ACT! Auto Repair Shop is twenty- adviser; Engr. John Paolo P. Severino who was
very helpful, supportive and greatly shares
four (24) hours.
knowledge to them with patience and diligence
in helping them in completing the necessary
Financial Aspect works throughout the study. Deepest gratitude is
The financial study on the proposed business ACT! Auto also due to the members of the panel of
Repair Shop is a viable business. The proponents examiners, Engr. Annalyn P. Romero, Engr.
projected that the initial capital requirements cost is Php Jelyn M. Rodriguez, Engr. Joseph Vincent E.
890,866.00 to operate the business. The proponents David, and Engr. Laarnie P. Carlos for guiding
successfully created financial statements that will them and sharing great ideas that enable them to
represent the performance of the proposed business improve and complete the research study. 
within the five-year term. Assumptions are used to Special thanks also to Ann D. Famuleras and
determine the possible future revenues and expenditures Aldren Narzoles for all-out support, guidance
of the company. The proposed business is financially and sharing their knowledge. 
viable with a payback period of ten months.
The researchers would like to express their love
Management Aspect and gratitude to their beloved family whom they
owe a lot and became their constant source of
The ACT! Auto Repair Shop is a general partnership support and encouragement, for their
type of business that consists of three business owners.
unconditional understanding and motivation that inspire
them in the duration of their studies. 
Above all, the researchers would like to give their
sincerest and warmest appreciation to the Lord and
Savior, ALMIGHTY GOD, in securing their safety and
furnishing them the necessary resources that leads for
the accomplishment of this study and became their
constant source of their strength, knowledge, skills,
patience, health, and blessing, who always hears their
prayers, guides their path throughout the journey in life
and make this research study a success.