Course Name: Entrepreneurship
Course Code: MGT368
Section: 13
Semester: Summer 2023
Group Name: Team Menace
Faculty Name: Looksina Khan
Faculty Initial: LKK
Submission Date: 30th May 2024
Group Members:
SL
No.
Name
ID
1
Tamjeed Rahman
2231954030
2
Md Daud Bin Iqbal Chowdhury
2222360630
3
Md Emdadul Haque
2232020630
4
Syed Abu Mazhar Samid
2131685630
5
Shams-e-ara Mahmood
2011761630
Introduction....................................................................................................................................4
Nature of the Business................................................................................................................... 5
Statement of Financing Needed.................................................................................................... 6
Confidential Disclosure Agreement..............................................................................................7
Business Model............................................................................................................................. 10
Business Model Canvas........................................................................................................... 10
Social Goal & Eco-Friendly Goals.......................................................................................... 11
Ethical Goal..............................................................................................................................11
Financial Sustainability............................................................................................................11
Sustainability............................................................................................................................11
Porter's 5 Forces Analysis........................................................................................................... 12
Threat of New Entrants (Moderate).........................................................................................13
Bargaining Power of Suppliers (Workshops) (High)............................................................... 14
Bargaining Power of Buyers (little to moderate)..................................................................... 14
Threat of Substitutes (Moderate)............................................................................................. 15
Competitive Rivalry (Moderate)..............................................................................................15
PESTEL Analysis.........................................................................................................................17
1. Political Factors:.................................................................................................................. 17
2. Economic Factors:............................................................................................................... 18
3. Social Factors:......................................................................................................................18
4. Technological Factors:......................................................................................................... 19
5. Environmental Factors:........................................................................................................19
6. Legal Factors:.......................................................................................................................20
SWOT Analysis............................................................................................................................ 21
Strengths:................................................................................................................................. 21
Weakness:................................................................................................................................ 21
Opportunities............................................................................................................................21
Threats......................................................................................................................................21
Description of ventures................................................................................................................22
Service delivery model.................................................................................................................22
Complete Process Flow:.......................................................................................................... 23
Market plan (4P’s)....................................................................................................................... 25
Product..................................................................................................................................... 25
Pricing...................................................................................................................................... 27
Place.........................................................................................................................................30
Promotion.................................................................................................................................33
2
Organizational plan..................................................................................................................... 34
Form of ownership...................................................................................................................34
Principal shareholders..............................................................................................................34
Authority of principals.............................................................................................................36
Management-team background................................................................................................37
Organogram............................................................................................................................. 38
Assessment of risk........................................................................................................................ 39
Pure Risk..................................................................................................................................39
Speculative Risk.......................................................................................................................39
Contingency plans....................................................................................................................40
Assessment of Failure Scenarios....................................................................................... 40
Contingency Actions..........................................................................................................40
Pivot to a B2B Model........................................................................................................ 40
Financial plan............................................................................................................................... 41
Factors considered for projected sales growth:........................................................................41
Revenue Calculations...............................................................................................................41
Break-Even Analysis............................................................................................................... 43
References..................................................................................................................................... 45
3
Introduction
Doctor Mechanic is an innovative automotive service platform that connects vehicle owners in
Dhaka, Bangladesh, with nearby mechanic workshops. Our website and mobile app provide
users with a seamless experience booking automotive services, from essential maintenance to
complex repairs. By offering a user-friendly interface, transparent pricing, and a robust feedback
system, Doctor Mechanic aims to revolutionize the automotive repair industry in Dhaka.
Name of the business: Doctor Mechanic
Address of the business: Block A, Road 1, House 46, Flat 4B, Niketon, Gulshan.
Nature of the Business
Doctor Mechanic is a mobile app-based platform connecting car and bike owners in Dhaka,
Bangladesh, with local automotive repair workshops. Our core business is to provide a
convenient, efficient, and transparent solution for automotive maintenance and repair needs. We
offer comprehensive services, including oil changes, filter replacements, tire rotations, engine
repairs, brake system services, and emergency response assistance.
4
Our platform leverages technology to offer a seamless user experience where customers can
search for workshops, compare services, read reviews, book appointments, and make secure
payments. By fostering strategic partnerships with local workshops, we ensure that our
customers have access to high-quality services.
Statement of Financing Needed
As we prepare to launch Doctor Mechanic, we have determined the major financial
requirements for starting and running our business. We are fortunate to have a group of
five devoted founding partners who are willing to contribute their capital to the company.
The following are the several types of financial requirements:
1. Initial Capital Investment:
Our five founding partners will contribute 25,000,000 BDT to provide the seed
funding needed to develop and launch Doctor Mechanic. Each partner will
contribute 5,000,000 BDT, representing a 20% stake in the company.
2. Fixed Costs:
A portion of initial cash will be used to pay fixed costs, which include mandatory
expenditures such as office setup, office equipment, and securing intangible assets
associated with our IT-based operations.
3. Operational Costs:
The rest of the initial money will go toward operational expenses, mainly
marketing and promotional initiatives. These funds will assist us in introducing
Doctor Mechanic to the market, attracting clients, and establishing a solid
presence.
5
We are convinced we can launch and operate Doctor Mechanic effectively with our
founding partners' commitment and monetary contribution. While our initial focus will be
profitability and sustainability, as the firm expands and demonstrates its potential, we will
look into ways to attract external investors to help fund our development ambitions.
Confidential Disclosure Agreement
THIS AGREEMENT, dated 30th May 2024, by and between Doctor Mechanic, a business
corporation “Doctor Mechanic” and Looksina Khan.
WHEREAS, Doctor Mechanic and Recipient, for their mutual benefit and pursuant to a working
relationship which has been or may be established, anticipate that Doctor Mechanic may
disclose or deliver to a working relationship which has been or may be established, anticipate
that Doctor Mechanic may disclose or provide to Recipient documents, components, parts,
information, drawings, data, sketches, plans programs, specifications, techniques, processes,
software, inventions and other materials, both written and oral, of a secret, confidential or
proprietary nature, including without limitation any and all information relating to marketing,
finance, forecasts, invention, research, design or development of information system and any
supportive or incidental subsystems, and any and all subject matter claimed in or disclosed by
any patent application prepared or filed by or behalf of by Doctor Mechanic, in any jurisdiction,
and any amendments or supplements thereto (collectively, “Proprietary Information”); and
WHEREAS, Doctor Mechanic desires to assure that the confidentiality of any Proprietary
Information is maintained;
NOW, THEREFORE, in consideration of the preceding premises and the mutual covenants
contained herein, Doctor Mechanic and Recipient hereby agree as follows:
1. For sixty (60) months from the date hereof, Recipient shall hold in trust and confidence and
not disclose to others or use for Recipient's own benefit or the benefit of another any Proprietary
Information which is disclosed to Recipient by Doctor Mechanic at any time between the date
6
hereof and twelve (12) months thereafter. Recipient shall disclose Proprietary Information
received under this Agreement to person within its organization only if such persons (i) have a
need to know and (ii) are bound in writing to protect the confidentiality of such Proprietary
Information. This paragraph 1 shall survive and continue after any expiration or termination of
this Agreement and shall bind Recipient, its employees, agents, representatives, successors,
heirs, and assigns.
2. The undertakings and obligations of Recipient under this Agreement shall not apply to any
Proprietary Information which: (a) is described in an issued patent anywhere in the world, is
disclosed in a printed publication available to the public, or is otherwise in the public domain
through no action or fault of Recipient; (b) is generally disclosed to third parties by Doctor
Mechanic without restriction on such third parties, or is approved for release by written
authorization of Doctor Mechanic; (c) if not designated “confidential” at the time of first
disclosure hereunder, or is not later designated in writing by Doctor Mechanic within thirty (30)
days from disclosure to Recipient to be of a secret, confidential or proprietary nature; or (d) is
shown to Doctor Mechanic by Recipient, within ten (10) days from disclosure, by underlying
documentation to have been known by Recipient before receipt from Doctor Mechanic and/or to
have been developed by Recipient completely independent of any disclosure by Doctor
Mechanic.
3. Title to all property received by Recipient from Doctor Mechanic, including all Proprietary
Information, shall remain at all times the sole property of Doctor Mechanic, and this Agreement
shall not be construed to grant to Recipient any patents, licenses or similar rights to such
property and Proprietary Information disclosed to Recipient hereunder.
4. Recipient shall, upon request of Doctor Mechanic, return to Doctor Mechanic all documents,
drawings, and other tangible materials, including all Proprietary Information and all
manifestation thereof, delivered to Recipient, and all copies and reproductions thereof.
5. The parties further agree to the following terms and conditions:
i. Any breach by Recipient of any of Recipient's obligations under this Agreement will result in
an irreparable inquiry to Doctor Mechanic for which damages and other legal remedies will be
7
inadequate. In seeking enforcement of any of these obligations, Doctor Mechanic will be
entitled (in addition to other remedies) to preliminary and permanent injunctive and other
equitable relief to prevent, discontinue, and/or restrain the breach of this Agreement.
ii. If any provision of this Agreement is invalid or unenforceable, then such provision shall be
construed and limited to the extent necessary, or severed if necessary, to eliminate such invalidity
or unenforceability, and the other provisions of this Agreement shall not be affected thereby.
iii. In any dispute over whether information or matter is Proprietary Information hereunder, it
shall be the burden of Recipient to show both that such contested information or matter is not
Proprietary Information within the meaning of this Agreement and that it does not constitute a
trade secret under the Uniform Trade Secrets Act or successor or similar law in effect in the State
of (your state).
iv. No delay or omission by either party in exercising any rights under this Agreement will
operate as a waiver of that or any other right. A waiver or consent given by either party on any
one occasion is effective only in that instance and will not be construed as a bar to or waiver of
any right on any other occasion.
v. This Agreement shall be binding upon and will inure to the benefit of the parties and their
respective successors and assigns.
vi. This Agreement is governed by and will be construed by the laws of Bangladesh, and the
courts of Bangladesh shall be the exclusive forum.
vii. This Agreement is in addition to any prior written agreement between Doctor Mechanic and
Recipient relating to the subject matter of this agreement; in the event of any disparity or conflict
between the provision of such agreements, the provision which is more protective of Proprietary
Information shall control. This Agreement may not be modified, in whole or in part, except by an
agreement in writing signed by Doctor Mechanic and Recipient.
8
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above
written.
Doctor Mechanic
By: ______________________
Tamjeed Rahman
Chief Executive Officer
9
Business Model
Business Model Canvas
Social Goal & Eco-Friendly Goals
Our primary social goal is to enhance the accessibility and convenience of automotive services
for vehicle owners in Dhaka. By bridging the gap between customers and reliable mechanic
workshops, we aim to ensure that vehicle maintenance is straightforward, trustworthy, and easily
accessible.
We are also committed to promoting eco-friendly automotive solutions. This includes
encouraging workshops to use environmentally friendly lubricants and promoting the adoption of
energy-efficient practices. We also aim to introduce services like LPG gas tank installations as a
greener alternative to traditional fuel options.
10
Ethical Goal
Doctor Mechanic is dedicated to maintaining high ethical standards by ensuring transparency in
all our operations. We will provide transparent and honest pricing, secure customer data, and
ensure our partner workshops adhere to fair labor practices and regulatory standards.
Financial Sustainability
Doctor
Mechanic's
financial
sustainability
is
built
on
a
commission-based
and
platform-fee-based revenue model. We will charge a commission fee from workshops and a
platform fee from customers on each service booking made through our platform, ensuring a
steady income stream. Additionally, we will explore promotional pricing, referral programs, and
partnerships with local automotive businesses to enhance our revenue. The initial capital
investment from our founding partners will provide the necessary funding to develop and launch
our platform. At the same time, our focus on profitability and operational efficiency will ensure
long-term financial stability.
Sustainability
Economic Sustainability: We aim to create a sustainable business model by diversifying our
revenue streams and continuously improving our service offerings. Our focus on customer
satisfaction and building solid relationships with mechanic workshops will drive repeat business
and customer loyalty.
Environmental Sustainability: Doctor Mechanic is committed to promoting green automotive
solutions. By collaborating with workshops to offer eco-friendly products and services, we aim
to reduce the environmental impact of vehicle maintenance. Our platform will also educate
customers on sustainable practices and the benefits of eco-friendly automotive solutions.
Social Sustainability: We strive to positively impact the local community by improving access
to reliable automotive services and supporting local businesses. By providing fair pricing and
quality services, we aim to enhance the overall customer experience and build a trustworthy
brand.
11
Porter's 5 Forces Analysis
This analysis examines the competitive landscape for your mobile app-based business, offering a
platform to connect car and bike owners with local repair workshops in Dhaka, Bangladesh. Your
app features workshop listings, customer reviews, pricing transparency, and emergency response
management. Revenue will be generated through commissions on repairs booked through the
app.
12
Threat of New Entrants (Moderate)
Moderate barriers to entry: According to Alam (2020), technical expertise is required to
develop a website, which comes with its caveats, but the core concept of the business model is
replicable, making the entry barrier moderate.
Network effects: Even though the business model is replicable, the more networks we can build
by creating partnerships with the vehicle workshops, the more valuable our platform becomes,
creating a barrier for new entrants. As Gawer (2009) cited in her book Platforms, markets, and
Innovation, “The more workshops and users you have, the more valuable your platform
becomes, creating a barrier for new entrants.”
Regulations: It might be challenging to follow app stores' rules about how apps function and
protect user data (App Review Guidelines, n.d.). Furthermore, administrative hassles may be
included in the licensing and permission process, although it is typically relatively easy to
manage (BRTA, n.d.).
The threat of new entrants is moderate to some extent. Even though the concept is replicable, it
takes time and effort to form partnerships and build trust in the market.
Bargaining Power of Suppliers (Workshops) (High)
Limited alternatives for workshops: Based on the dominance of our platform, places for
workshops to include clients in non-traditional ways could be significantly reduced, thereby
giving us the upper hand.
Large pool of workshops in Dhaka: On the other end of the spectrum, as there exist several
workshops throughout Dhaka, it gives them a slight upper hand, especially during the initial
stages. (BRTA, n.d.)
Commission structure: A large portion of our revenue will come from commission rates based
on negotiations with our partners, impacting our profitability.
Our platform's dominance could restrict other ways workshops interact with customers, giving us
a competitive advantage. On the other hand, they initially had a slight edge because Dhaka had
13
many workshops. Furthermore, agreed-upon commission rates with partners significantly impact
our revenue strategy, directly impacting our profitability.
Bargaining Power of Buyers (little to moderate)
Information Access: The core objective of our platform is to offer clients workshop reviews,
repair cost comparisons, and other relevant services. However, they might circumvent our
commission system by directly negotiating pricing with workshops that negatively impact the
revenue stream.
Value Proposition: However, our platform's convenience, which includes functions like online
quotation requests and appointment scheduling in addition to clear ratings and reviews and the
assurance of speedier service, might lessen the impact of price on consumers. This increases their
attraction to our platform and encourages them to use it.
Our online platform attempts to offer customers repair pricing comparisons, workshop
evaluations, and associated services. However, there is a chance that customers would directly
negotiate rates with workshops, circumventing our commission structure and thus harming our
revenue stream. However, the ease of use provided by our platform—which includes the ability
to obtain quotes and schedule appointments online—combined with clear ratings and reviews,
quicker service, and reduced importance of pricing for customers. This makes our platform more
appealing and draws in additional users. Thus, the bargaining power of buyers has risen from
little to moderate.
Threat of Substitutes (Moderate)
Existing online directories: Some workshops have online platforms but need more coverage
and user-friendliness, which we have on our platform.
Direct contact with workshops: Clients can still find workshops via conventional techniques
like word-of-mouth, local directories, or social media platforms.
Substitutes pose a moderate threat. Existing online directories offer some competition, but our
app's focus on mobile convenience, features like emergency response, and user-generated
reviews can differentiate our service.
14
Competitive Rivalry (Moderate)
Potential for similar apps: Our platform's success may draw in rivals that provide comparable
services. The rivalry can be like that between FoodPanda and Pathao Foods. Similar services like
Zantrik and Sheba XYZ are our indirect competitors.
Competition from traditional workshop networks: Dealerships and repair networks with a
long history may have a loyal customer base. Moreover, there are an estimated 2,500 small to
medium-sized workshops in Dhaka, which make up a large network. Due to this fragmentation, a
fierce rivalry frequently centers on pricing.
Limited Branding: Many workshops need strong brand recognition or established reputations,
making it challenging to stand out from competitors.
From a birdseye perspective, there is little competition in the initial phase of the business.
However, as our platform expands, it can draw in moderate to intense competition, much like the
one between Foodpanda and Pathao Foods. Nevertheless, the lack of strong marketing
campaigns is a weakness for most of the workshops for which our platforms' popularity can work
in their favor in gaining market share.
15
PESTEL Analysis
1. Political Factors:
Government Regulations: Bangladesh has regulations governing the automotive industry,
including requirements for business registration, licensing, and safety standards enforced by
agencies like the Bangladesh Road Transport Authority (BRTA) and the Bangladesh Standards
and Testing Institution (BSTI).
Political Stability: Bangladesh has experienced political instability, which can disrupt business
operations. However, efforts to improve political stability and infrastructure development
initiatives like road expansions and upgrades enhance opportunities for the automotive service
industry. For example, if the political situation is unstable for a long period of time, riots and
protests could disrupt regular business activities. This could cause our business to incur periods
of negative cash flow as fewer customers would contact us for our services. Furthermore, it
would be alarming for our employees to get the job done in a volatile environment.
16
2. Economic Factors:
Economic Growth: Bangladesh has maintained a steady economic growth rate over the years,
with a GDP growth rate averaging 6-7%. (The World Bank In Bangladesh, 2023). This growth
contributes to a growing middle class with increasing purchasing power, potentially leading to
higher demand for automotive services. Bangladesh's high tax rates make vehicles expensive for
the urban middle class, restricting market expansion. A decrease in the local manufacturing tax
may stimulate the market. For example, if this economic growth rate continues, the number of
cars and cars requiring repair or maintenance will also increase. This could grow the service
industry as well as our business.
Income Levels: While income levels vary across demographics, a growing segment of the
population with disposable income, particularly in urban areas, can afford car ownership and
maintenance services. Moreover, this is a positive factor for our business. In 2023, Bangladesh's
GDP reached 446.35 billion U.S. dollars. Since 2014, there has been an approximate 253 billion
dollar gain, and this growth is expected to continue at least through 2029. (Bangladesh - Gross
Domestic Product (GDP) 2029 | (Statista, 2024).
Inflation Rates: Inflation rates in Bangladesh have been relatively moderate in recent years. For
example- the inflation rate of April 2024 was 9.74% (Bangladesh Bank, n.d.), which can impact
the business's operating costs and pricing strategies. With rising inflation rates in Bangladesh, the
rates of supplies may vary, which can cause problems with profit margins. The cost of services
might increase rapidly, which could cause customers to switch to competitors or be dissatisfied if
the prices of services are also increased.
3. Social Factors:
Cultural Attitudes towards Car Ownership and Maintenance: Car ownership is often seen as
a symbol of status and mobility in Bangladesh. Moreover, with the increasing middle-class
population, there is a growing preference for personal transportation, leading to a higher demand
for car maintenance services. This is essential for the business as we predict the industry's
potential growth, meaning the number of new customers is increasing for our business to attract.
17
Demographic Trends: Bangladesh has a predominantly young population, with a significant
portion residing in urban areas. Urbanization trends and rising nuclear families contribute to the
demand for personal vehicles and related services.
4. Technological Factors:
New Cutting-edge equipment: As a part of our value-added services, we will also provide our
customers with cutting-edge equipment unavailable in the market. For example, in the case of
FI-based bikes, this type of bike requires an FI cleaning machine, which is typically unavailable
in standard workshops. Moreover, since this type of bike is new in the Bangladeshi market, most
workshops need to be equipped with this machinery for newer models. Moreover, our company
is committed to making such cutting-edge and new products available to our customers.
Use of Technology for Service Delivery: The widespread use of mobile phones and internet
connectivity in Bangladesh provides opportunities for implementing technology-driven solutions
such as mobile apps for scheduling appointments, online service tracking, and customer feedback
mechanisms. According to Kemp (2023), there are 179.9 million active mobile connections in
Bangladesh, translating to over 104% mobile phone penetration. Additionally, internet user
penetration reached 38.9% in early 2023(Kemp, 2023). This growing tech-savvy population
creates a prime market for utilizing mobile applications to improve our service delivery. Our
business will use these technologies to differentiate itself from competitors. As a result, we will
provide a better service to our customers.
5. Environmental Factors:
Environmental Regulations: Bangladesh has environmental regulations to address issues such
as vehicle emissions and waste disposal. Compliance with these regulations is essential to
operate responsibly and maintain a positive brand image. Our service could reduce the use of
environmentally harmful products while providing services to our customers and also provide
greener solutions such as LPG gas tanks instead of CNG gas.
Green Initiatives: As environmental awareness grows globally and in Bangladesh, there is an
increasing demand for eco-friendly automotive solutions. Implementing green initiatives such as
18
using eco-friendly lubricants and promoting energy-efficient practices can appeal to
environmentally-conscious consumers to diversify our target customers.
6. Legal Factors:
Employment Laws: Operating within the legal framework of Bangladesh is essential. This
includes adhering to minimum wage requirements, overtime regulations, and mandated
employee benefits as outlined in the Bangladesh Labour Act 2006. Our enterprise commits to
providing industry-standard wages and monthly evaluations of employees to determine their
productivity levels and reward them accordingly for maintaining a motivated workforce.
Consumer Protection Laws: Adhering to consumer protection laws ensures transparency and
fair treatment of customers, which is essential for building trust and loyalty. In line with that, we
will keep all services and products transparent with customers and let them decide with our
employees offering the best advice needed for their car repairs or maintenance. If the customer
does not permit certain changes or permits exceeding a certain budget, our company will comply
with the customer's requirements.
Contract Laws: Ensuring that contracts with customers, suppliers, and partners comply with
Bangladesh's legal requirements helps mitigate legal risks and smooth business operations. All
contracts will be reviewed and handled by our company-hired lawyers or law firms, which would
protect the business from any legal challenges with any of the company’s stakeholders.
19
SWOT Analysis
Strengths:
- User-friendly platform with an easy-to-navigate website and app.
- Comprehensive service offerings across a wide range of automotive services.
- Strategic partnerships with local workshops.
- Transparency in pricing and service details.
- Emergency response team available 24/7 for urgent repairs.
Weakness:
- Dependence on partner workshops for service quality.
- Challenges in initial market penetration, building brand awareness and trust.
- Potential for customers to bypass the platform by directly contacting workshops.
Opportunities
- The automotive market is growing, with an increasing number of vehicles in Dhaka.
- Increasing demand for convenient, tech-driven solutions.
- Potential to expand to other cities in Bangladesh.
Threats
- Competitive market with potential for similar platforms to emerge.
- Regulatory changes that could affect the automotive industry.
- Economic instability impacting consumer spending.
20
Description of ventures
Size of Business: Doctor Mechanic is a small to medium-sized enterprise (SME) in its initial
phase, with plans for growth as we establish our brand and expand our user base.
Office Equipment and Personnel: Our office will have modern IT infrastructure, including
computers, servers, and communication tools. Key personnel includes:
● Founding partners (5)
● Customer service representatives
● Marketing strategist
● IT and technical support staff
● Accountants
Service delivery model
Our service delivery model revolves around our mobile app and website. Customers can easily
search for workshops, compare services, read reviews, and book appointments. We offer:
●
Search and Book Services: Easily find and book a wide range of automotive services.
●
Workshop Listings: Access detailed information about partner workshops, including
customer reviews and ratings.
●
Transparent Pricing: View clear pricing for services with no hidden fees.
●
24/7 Emergency Response: Request immediate assistance for urgent repairs.
●
Secure Payments: Make hassle-free payments through multiple payment options.
●
Feedback Mechanism: Rate and review services to maintain quality standards.
21
Complete Process Flow:
For Regular Service1. User Visits the Homepage:
● Sees the value proposition and visuals.
● Location is detected or manually set to Dhaka.
● Uses the search bar to find desired services.
2. Selecting a Workshop:
● Review detailed workshop profiles.
● Uses filters to narrow down choices.
● View workshops on a map.
3. Booking a Service:
● Select the desired service.
● Choose a date and time.
● Fill out vehicle details and any special requests.
● Completes payment through the secure payment gateway.
4. Booking Confirmation:
● Receives confirmation via email and app notification.
● Includes booking details, workshop contact information, and cancellation policy.
5. Customer Support:
● Accesses help through the “Need Help” option.
● Gets assistance with cancellations or bookings if needed.
6. Service Appointment:
● Receives reminders about the appointment.
● Takes the vehicle to the selected workshop at the scheduled time.
7. Post-Service Engagement:
● Leave feedback and ratings for the workshop.
● Receives thanks and possibly incentives for future bookings.
22
For ERT Service:
Process Flow:
1. Initiate Emergency Request:
○ The user opens the Doctor Mechanic app and navigates to the "Emergency
Response" section.
○ The app uses GPS to detect the user's location automatically.
○ The user selects the type of emergency encountered (e.g., breakdown, flat tire,
accident).
○ Users can optionally provide additional details about the emergency (e.g., nature
of the problem, vehicle description).
2. Doctor Mechanic Assigns Workshop:
○ The app transmits the emergency request to the Doctor Mechanic central system.
○ The system identifies the nearest available and qualified workshop based on user
location, emergency type (expertise required), and past performance ratings.
○ Doctor Mechanic assigns the emergency request to the chosen workshop, along
with the user's location and emergency details.
3. Workshop Confirmation and Communication:
○ The assigned workshop receives the emergency request notification on their app
or dedicated platform.
○ The workshop manager confirms acceptance of the request within a designated
timeframe (e.g., 2 minutes).
○ Upon confirmation, the user receives an in-app notification with a technician's
estimated arrival time (ETA) from the assigned workshop.
○ An in-app chat function allows users to communicate directly with the workshop
for updates or clarifications.
4. Service Delivery:
○ The workshop technician or ERT team (depending on the situation) arrives at the
user's location and assesses the emergency.
23
○ The technician communicates with the user to understand the problem and discuss
potential solutions.
○ Based on the assessment, the technician provides necessary roadside assistance or
initiates repairs as authorized by the user.
○ The technician will arrange these services if the issue requires towing or a more
extensive repair at the workshop.
5. Service Completion and User Feedback:
○ Upon resolving the emergency or arranging for alternative solutions, the
workshop or ERT team marks the service as complete within the app.
○ The user receives an in-app notification for service completion and a prompt to
provide feedback on their experience.
○ User feedback is collected through a rating system and optional comments within
the app.
Market plan (4P’s)
Product
Doctor Mechanic will offer a comprehensive range of automotive repair and servicing solutions
designed to meet the diverse needs of vehicle owners in Dhaka City. Our product model revolves
around providing a seamless platform that connects customers with nearby mechanic workshops
for automotive services. Here is a detailed breakdown:
● User-Friendly Platform: We will develop a website and mobile app with a user-friendly
interface for customers to navigate and book services easily. Ensure the platform is
intuitive, responsive, and accessible across various devices.
● Service Options: Offer various service options to cater to different customer needs and
preferences. These may include basic maintenance services. By using our mobile
application, customers can use the following services from workshops-
24
Car Services
Bike Services
➢ Oil Change & Filter Replacement
➢ Oil Change & Filter Replacement
➢ Tire Rotation & Balancing
➢ Chain Cleaning & Lubrication
➢ Fluid Top-Offs (brake fluid, coolant, power
➢ Tire Pressure Check & Adjustment
steering fluid)
➢ Battery Check & Cleaning
➢ Air Filter Replacement
➢ Brake Pad Inspection & Replacement
➢ Headlight & Taillight Check & Bulb
Replacement
➢ Wiper Blade Replacement
➢ Emergency Response Team
➢ Light Bulb Replacements
➢ Spark Plug Replacement
➢ Engine Repair
➢ Battery Check & Cleaning
➢ Brake System Service
➢ Air Filter Cleaning or Replacement
➢ Suspension System Repair
➢ Engine Repair
➢ Cooling System Service
➢ Brake System Service
➢ Transmission Repair
➢ Suspension System Repair
➢ AC System Service
➢ Electrical System Repair
➢ Wheel Alignment
➢ Tire Repair or Replacement
➢ Computerized Diagnostics
➢ Wheel Alignment
➢ Car Wash & Detailing
➢ Emergency Response Team
● Workshop Listings: Create a comprehensive database of mechanic workshops partnered
with our platform. Each workshop listing will include essential details such as location,
services offered, customer ratings, and pricing. Mechanic Motorworks, Multibrand
Workshop Limited, Auto Techniq, Jewel Bike Repair.
● Booking System: Implement a robust booking system that allows customers to schedule
appointments with mechanic workshops at their preferred date and time. Provide
real-time availability information and instant confirmation of bookings. Customers can
book their slot time through the app/website and learn how much time will be needed for
the service to complete.
25
● Communication Tools: Facilitate seamless communication between customers and
mechanic workshops through built-in messaging or chat features. This enables customers
to discuss service requirements, ask questions, and receive updates.
● Payment Integration: Integrate secure payment processing capabilities into our platform
to allow customers to make hassle-free payments for services rendered. Offer multiple
payment options, including credit/debit cards, digital wallets, and cash on delivery.
● Feedback Mechanism: Incorporate a feedback mechanism that enables customers to rate
and review mechanic workshops based on their experience. This feedback loop helps
maintain service quality and builds trust among users.
● 24/7 Emergency Response Team: Understanding the unpredictability of automotive
issues, we offer round-the-clock emergency assistance to address urgent repair needs. Our
rapid response team is equipped to handle various emergencies, providing peace of mind
to vehicle owners facing unexpected breakdowns or malfunctions. For ERT services, we
will partner with specific workshops ready to provide 24/7 services in their area.
For example, late one evening, Mr. Ali experienced an engine failure while returning
home from a family gathering. He immediately contacted Dr. Mechanic's emergency
hotline. Within minutes, a skilled technician arrived at the scene to diagnose the issue and
provide on-the-spot repairs, allowing Mr. Ali to return home safely and with minimal
disruption to his plans.
Pricing
Doctor Mechanic will implement a pricing strategy that reflects the value and quality of our
automotive repair and servicing solutions. Our pricing structure is designed to ensure customers'
affordability while fairly compensating our network of skilled mechanical workshops and
sustaining our operations.
The following components outline our pricing model:
1. Commission-Based Revenue:
➢ Commission on Services: A 10% service fee will be charged to workshops for every
booking made through the platform.
26
Example: If a car repair service costs 5,000 BDT, and the agreed commission is 10%, the
workshop pays us 500 BDT for that booking.
➢ Variable Commission Rates: Offer tiered commission rates based on the volume of
bookings a workshop receives through our platform. Higher volume workshops may
benefit from lower commission rates to encourage more bookings.
Example: Workshops with more than 50 bookings per month may have a reduced
commission rate of 8%.
2. Platform Fees: We will be charging 50 tk from customers as a platform fee for each
booking through our app. We have set the price of the platform fee based on market
research and the following costs-
Website Feature
Cost
Domain
5,000 BDT
Hosting/month
51,000 BDT
SSL Certificate
17,000 BDT
Website theme/template
17,000 BDT
Website content
43,000 BDT
27
eCommerce functionality (Optional)
1,500,000 BDT
SEO and marketing (Optional)
7,000 BDT
Apps integration (Optional)
8,500 BDT
3. Service Pricing:
➢ Standardized Pricing: Basic maintenance services may have fixed pricing, while repair
or specialized services may be priced hourly or based on the extent of work required.
Some of our services with prices are listed below:
○ Flat Tire Replacement:
●
- Price: BDT 500 (including labor and tire replacement)
○ Routine Oil Change:
● Price: BDT 1000 (including oil and labor)
○ Emergency Engine Repair:
● Price: Varies based on repair needs, starting from BDT 1500.
○ Brake Repairs:
● Price: BDT 1500 (including parts and labor)
○ Variable Pricing: Price services based on their complexity and duration.
Example: Engine repair service starting from 5,000 BDT, with the final cost based
on a detailed quote provided by the workshop.
4. Transparent Cost Estimates:
○ Upfront Quotes: Provide customers with upfront cost estimates for services
based on their needs.
28
Example: A customer requesting brake repairs will receive an estimated cost of
1,500 BDT, including parts and labor, before confirming the booking.
○ Additional Charges: Clearly communicate any potential additional charges or
fees before service confirmation.
Example: Diagnostic fee of 1000 BDT if additional issues are identified during
the initial inspection.
Place
Target Audience: Vehicle owners in Dhaka, Bangladesh.
Initial Operation Area: Banani, Dhanmondi, Kawran Bazar, Mohakhali, Kuril Bishwa road.
Placement Channels:
● Month 1-3 (Launch & Early Traction):
○ Website & App Development: We will develop a user-friendly website and
mobile app for a smooth user experience. This includes basic functionalities like
search, booking, and secure payment processing.
○ Our placement strategy encompasses how we present information and
functionalities on our website and app to effectively guide users toward becoming
customers. Here is a detailed breakdown of how this strategy would work for our
Dhaka-based automotive servicing platform:
29
Website & App User Journey:
1. Homepage:
● Clear Value Proposition: There will be a prominent headline, “Doctor
Mechanic, A path for your vehicle's treatment,” and visuals that should instantly
showcase the benefits of using our platform.
● Location Targeting: Automatically detect the user's location (if allowed) and
pre-populate the search area for Dhaka. Users can also manually choose a specific
area within Dhaka.
● Search Functionality: Provide a user-friendly search bar with filters for service
types, workshop locations, and ratings. Offer suggestions as users type for a
smooth experience.
2. Workshop Listings:
● Compelling Information: Display detailed profiles for each workshop,
including:
○ Contact details (phone, address, website)
○ Service offerings:
■ Basic Maintenance: Oil changes, tire rotations, and filter
replacements.
■ Repair Services: Diagnostic checks, brake repairs, engine repairs,
etc.
■ Specialized Services: Detailing, customization, restoration, etc.
■ User reviews and ratings with transparent star displays
● Prominent Call to Action (CTA): Each workshop profile should have a clear
CTA button like "Book Now" or "Get Quote" that takes users directly to the
booking process.
● Map Integration: Display workshops on a map view with clear location markers,
allowing users to visualize workshop locations within Dhaka easily.
30
3. Booking Process:
● Simplified Steps: Guide users through a streamlined booking process with
minimal steps.
○ Select the desired service from the workshop's menu.
○ Choose a date and time slot based on workshop availability.
○ Fill out a short form with basic vehicle details and any special requests.
● Secure Payment Gateway: Integrate a secure payment gateway for users to
seamlessly pay for their service bookings using popular online payment methods
in Bangladesh.
● Booking Confirmation: Provide a clear confirmation email and app notification
with booking details, workshop contact information, and cancellation policy.
4. Customer service representatives:
● We will have a team to clear out customer confusion.
● There will be a “Need Help” option on the front page of our website where clients can get
help through messages or calls.
● The cancellation system will be a lot easier and hassle-free with the help of our customer
representative team.
● Customers can make bookings easily as well.
5. Post-Booking Engagement:
● Service Reminders: Send automated email or app notifications reminding users about
upcoming appointments.
● Feedback & Review System: Encourage users to leave feedback and ratings for
workshops after service completion. This builds trust and transparency for future users.
6. Optimizing User Experience:
● Mobile-Friendly Design: We will ensure that our website and app are responsive and
optimized for mobile devices, considering most users in Dhaka will likely access them on
smartphones.
31
● Fast Loading Speeds: We will prioritize website and app loading speed to avoid user
frustration and ensure a smooth experience.
● Straightforward Navigation: We will make it easy for users to find the information and
features they need with a clear and intuitive website and app navigation structure.
● Multilingual Support: We will consider offering Bengali language support on our
website and app to cater to a broader audience in Dhaka.
Promotion
● Month 4-5
○ Social Media Marketing (SMM): After developing our website and app, we will
start engaging in social media content (Facebook, Instagram) targeting car owners
in Dhaka. We will run targeted ad campaigns with a small budget to build brand
awareness.
FACEBOOK: We will run ad campaigns on Facebook. Below is our estimated yearly
cost per day for 364 days.
Payment Summary
Our ad will run for 364 days.
Budget
৳40,203.80 BDT
৳110.45 a day x 364 days.
Estimated VAT
৳6,030.60 BDT
Total Amount
৳46,234.60 BDT
● Month 5-9 (User Acquisition & Growth):
○ Influencer Marketing: We will partner with a few local car enthusiasts, bloggers,
or social media influencers with a decent following in Dhaka who target car
owners. Offer them free service bookings on your platform to promote their
channels.
32
■ Avik Anwar, who is also a well-known personnel member in the
automotive industry, will go on a contractual agreement of BDT 5 lac for a
6-month period. He will promote our platform during this period through
all his YouTube videos. The expected reach to the target audience per
video is 1,00,000/○ Referral Program Development: We will develop a referral program with
attractive rewards (discounts, loyalty points) to incentivize existing users to
recommend your platform to friends and family.
■ New users can refer to someone else, and both get a discount.
● Month 9-12:
○ Local Events & Sponsorships: We will participate in relevant car shows,
automotive workshops, or other events in Dhaka to increase brand awareness and
user acquisition. Moreover, our budget for this will be 5 lac BDT.
Organizational plan
Form of ownership
Our business will be structured as a partnership, with five partners working together to
launch the startup.
Principal shareholders
The ownership structure of our business comprises five partners, each holding an equal
equity share of 20%. This equitable distribution ensures shared responsibility and
decision-making power among the partners. Profits and losses will be allocated
proportionately to each partner's equity stake, reflecting their commitment to the venture.
33
Authority of principals
Name
Role Authority
Tamjeed Rahman
Chief Executive Officer, General Partner, Full Authority
Md Daud Bin Iqbal Chowdhury
Chief Financial Officer, General Partner, Full Authority
Md Emdadul Haque
Chief Marketing Officer, General Partner, Full Authority
Syed Abu Mazhar Samid
Chief Operating Officer, General Partner, Full Authority
Shams-e-ara Mahmood
Chief Technology Officer, General Partner, Full Authority
34
Management-team background
Chief Executive Officer
Bachelor of Business Administration in Finance and
Management Information Systems.
Two years of working experience.
Chief Finance Officer
Bachelor of Business Administration in Finance and
Accounting.
Two years of working experience.
Chief Marketing Officer
Bachelor of Business Administration in Marketing.
One year of working experience
Chief Operations Officer
Bachelor of Business Administration in Marketing
and Human Resource Management
Two years of working experience.
Chief Technology Officer
Bachelor of Science in Computer Science and
Engineering.
Three years of working experience.
35
Organogram
36
Assessment of risk
Pure Risk
Operational Risk: This includes risks associated with the day-to-day operations of Doctor
Mechanic, such as system failures, technical glitches, and downtime. These issues can disrupt
services and negatively impact the user experience. For instance, if the app crashes or
experiences prolonged downtime, customers may be unable to book services, leading to a loss of
revenue and trust.
Regulatory Risk: This involves changes in government regulations and policies that could affect
the business operations and compliance requirements. For example, new regulations regarding
digital transactions, data privacy laws, or automotive service standards could impose additional
compliance costs and operational adjustments for Doctor Mechanics.
Speculative Risk
Market Risk: This encompasses economic downturns, consumer behavior changes, and demand
fluctuations that can impact revenue. For instance, during an economic recession, consumers
may reduce their spending on automotive maintenance and repairs, leading to decreased
bookings on our platform. Additionally, changes in fuel prices or advancements in automotive
technology (e.g., electric vehicles) could influence market demand and consumer preferences.
Competitive Risk: This entails the threat of new entrants or existing competitors improving
their offerings, which can affect market share and customer retention. If a new platform with
better features or more competitive pricing enters the market, it could attract our customers,
reducing Doctor Mechanic's market share. Similarly, if existing workshops or traditional service
providers enhance their services or offer direct booking options, it could bypass the need for our
platform, impacting our revenue model.
37
Contingency plans
Objective: To outline a strategic response plan for Doctor Mechanic in case our current business
model encounters significant challenges or fails. This plan will utilize available resources to
pivot effectively and ensure the business's continuity.
Assessment of Failure Scenarios
Before detailing the contingency actions, it is essential to identify potential reasons for failure,
including but not limited to:
1. Lack of User Adoption: Insufficient customer acquisition or retention.
2. Technical Challenges: Issues with app or website functionality.
3. Competitive Pressure: Increased competition from similar platforms.
4. Operational Issues: Inefficient workshop partnerships or logistical challenges.
5. Economic Factors: Unfavorable economic conditions affecting spending on vehicle
maintenance.
Contingency Actions
Pivot to a B2B Model
Shift focus from a B2C (Business to Consumer) to a B2B (Business to Business) model by
offering our platform to mechanic workshops, dealerships, or other automotive service providers.
Steps:
● Rebrand and Market: Position our platform as a comprehensive management and
customer acquisition tool for workshops.
● Subscription Model: Introduce a subscription-based model where workshops pay a
monthly or annual fee for using our platform.
● Value-Added Services: Enhance the platform with additional features like inventory
management, customer relationship management (CRM), and analytics.
38
Resources Utilized:
● Existing platform technology.
● Current workshop partnerships.
● The marketing and sales teams will approach potential business clients.
Financial plan
Factors considered for projected sales growth:
1. Our marketing strategy drives our initial awareness and market share acquisition, thereby
inducing the growth rate from 1% to 5% in year 1. In year 2, we estimated a conservative
growth to be 0.5% on a semiannual basis, as we assumed the same marketing budget for
year 2.
2. The second factor that drives the estimated growth in years 1 and 2 is our increase in
strategic partnerships with other workshops in our target area alongside the existing ones.
3. From year 3 onwards, we estimated a constant growth rate of 4% based on the growth
rate calculated using a reinvestment rate of 31.86% and an average return on capital of
12.554% from August to December of year 2, alongside the abovementioned factors.
Revenue Calculations
Number of car and bike owners in Dhaka city-1,386,495 customers (Report, 2022)
Target Area Customer-1,178,520 customers
Projected Customers for the first month - 0.1% of 1,178,520= 1178 customers
According to Chakma (2019), an average of Tk 18,000 is spent on a car a year for servicing and
Tk 3600 on each bike per year.
39
Vehicle
Monthly Spending of each customer per
vehicle
Per Car Cost
18000/12= 1500 tk
Per Bike Cost
3600/12= 300 tk
Total
1800 tk
Revenue From Commission (Monthly)Projected Sales of Target Area Workshops= 1178 *1800= Tk 2,121,337
Projected Income of Doctor Mechanic from Commissions (first month) = 2,212,337* 10%= Tk
212,133
Revenue From Platform Fee(Monthly) Platform fee set based on market research of Tech services and our cost = Tk 50
Projected Income of Doctor Mechanic from Platform Fee (first month) = 1178 *50= Tk 58,926
40
Break-Even Analysis
YEAR 1
YEAR 2
NO OF CUSTOMER
YEAR 3
26,969
48,028
16,275
SALES
3,743,155
6,202,934
230
230
223
FC
2,420,333
2,420,333
2,420,333
VC
3,518,235
4,118,235
5,150,235
216
153
107
CM
14
77
116
CM ratio
0
0
1
31,311
20,852
1,001,475,616
SALES PER CUSTOMER
VC PER CUSTOMER
BEP(CUSTOMER)
175,128
BEP(VALUE TK)
2,850,141,641
844,443,151
Year
Sales
VC
No.of Customers
FC
10,724,966
NET
PROFIT/(LOSS)
Year 1
16,275
3,743,155
2,420,333 3,518,235
(2,195,413)
26,969
6,202,934
2,420,333 4,118,235
(335,634)
31,311
7,201,599
2,420,333 4,781,266
(0)
48,028
10,724,966
2,420,333 5,150,235
3,154,398
Year 2
Year 3 (BE)
Year 3
(Actual)
41
Based on our estimated growth from year 1, we will reach BE in Year 3, and for that, we need to
serve over 31,311 customers.
42
References
App
Review
Guidelines.
(n.d.).
Apple
Developer.
Retrieved
April
28,
2024,
from
https://developer.apple.com/app-store/review/guidelines/
BRTA. (n.d.). বাংলাদেশ সড়ক পরিবহন কর্তৃ পক্ষ-গণপ্রজাতন্ত্রী বাংলাদেশ সরকার. Retrieved April 28, 2024, from
https://brta.gov.bd/
Gawer, A. (Ed.). (2009). Platforms, Markets and Innovation. Edward Elgar.
The World Bank In Bangladesh. (2023, April 10). Bangladesh Overview: Development news, research,
data.
World
Bank.
Retrieved
April
29,
2024,
from
https://www.worldbank.org/en/country/bangladesh/overview
Bangladesh - Gross domestic product (GDP) 2029 | Statista. (2024, April 26). Statista.
https://www.statista.com/statistics
Bangladesh Bank. (n.d.). https://www.bb.org.bd/en/index.php/econdata/inflation
Kemp, S. (2023, February 13). Digital 2023: Bangladesh — DataReportal – Global Digital
Insights. DataReportal – Global Digital Insights.
https://datareportal.com/reports/digital-2023-bangladesh
Report, T. (2022, April 4). Which vehicle dominates Dhaka city roads? The Business Standard.
https://www.tbsnews.net/infograph/numbers/which-vehicle-dominates-dhaka-city-roads-3
96846
Chakma, J. (2019, May 15). Automobile repair draws big business groups’ interest. The Daily
Star. https://www.thedailystar.net/business/news/automobile-repair-drawsHawlader, R. (2024, May 13). How much time and money is needed for website design in
Bangladesh (+Complete breakdown of price) - ARN TECH. ARN TECH.
https://arntechbd.com/blog/how-much-time-and-money-is-needed-for-website-design
43