Basically this is an American concept & the Japanese are the pioneers in this in the GCC countries & functioning successfully the limited version of it in Dubai & Saudi Arabia.
This will provide a direct employment opportunity for 71 people & an indirect employment opportunity for more than 200 people.
Approximate investment for this project is AED 1665000/- or US$ 500000/- (US$ .5 million) as one time investment & registration and other procedural expenses will be extra as per the rules & regulations of the country.
Return On Investment of the project is only 18 months.
Considering the viability of the project and the fact that not much competition is visible in the immediate horizon & the estimated expenses to start branches is also lesser, the organization may also consider of opening more branches in the Middle East.
Further, a branch can be made functional with the help of a branch head, the salary payable to the General Manager and a number of other Functional Managers can be saved”.
SWOT analysis of the project:
. Strengths: No full spectrum service providers operates in automobile retailing in the region & as it is a one stop shop , it will have the first mover advantage & will be the people’s choice .
. Weaknesses: Literally no weaknesses but instead the monopoly merit too.
. Opportunities: Tremendously increasing vehicle population of the country.
. Threats: No threat is visible in the immediate horizon as there is no competition.
Suggestion:
The services are currently available – though not perhaps in a single location.
Your pay back period may be 18 months, your return on investment certainly will not be.
Your threats will be new entrants – if you start a business which is wildly profitable others will copy in a very short space of time.
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