Go-Fast is a very small company in Amravati, operating its business of repairing electric-two-wheeler. It has a reputation for its fair charges and speedy delivery. For the next five years, a market study offers the foll

CS Professional · Strategic Management and Corporate Finance · PYQS · December 2024
Go-Fast is a very small company in Amravati, operating its business of repairing electric-two-wheeler. It has a reputation for its fair charges and speedy delivery. For the next five years, a market study offers the following information : Many college students are being given e-bike by the college authorities themselves and this trend is likely to continue for another five years. Coaching centers provide new e-bikes to all the students during the admission. The fees are inclusive of these costs. LiFePO4 batteries are fast replacing lead acid batteries in certain market segments and models change every six months. In case of major repairs, affluent people discard the old lead acid batteries e-bike and go in for new LiFePO4 batteries e-bike. However, there are rural markets and certain parts of urban markets which will still be interested in the low-cost lead acid batteries e-bike repaired and re-sold the e-bikes. Considering the gravity of the above situation Go-Fast plans to limit its operations to only one city. You are required to give : SWOT analysis;

Answer & Explanation:

SWOT Analysis: a) Strengths: Access to standard spare parts that normally required in lead acid e-bikes, network of trained employees who have requisite job knowledge, available loyal customers, less time in delivery and perfect commitment. b) Weakness: Going beyond the scope of faults recognized by the customers, often leading to cost overruns while preventing future repairs calls. c) Opportunities: Branches may be opened in universities/colleges and big coaching centers. Business can be extended to the sale of repaired e-bikes in ready mode and going markets, preventing maintenance services, annual maintenance contracts, upgrades and compatibility addition with new peripherals, etc. d) Threats: Unless lead acid e-bike markets are also created to, there is a threat to long term survival. Threats from shops which are providing one stop solution for repairing all types of e-bikes including lead acid, LiFePO4 batteries etc. Threats of obsolescence resulting in non-availability of spares and change in Government policy in future on pollution control as regard to disposal of old batteries scrap.

Topics: Strategic Management

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