A case study determining the relevance of motor body repairs focusing on niche markets outside the insurance industry, to establish a position of competitive advantage.
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When one thinks of motor vehicle accident damage repairs, one often thinks of unscrupulous operators and a scurrilous industry. While this is regrettably often the case, there is a counterpoint, being the significant number of motor body repair firms that have invested significant sums in establishing accredited and certified motor body repair outlets, and who offer a premium service. The industry is one that is regulated by the South African Motor Body Repair Association, a body that seeks to dictate a standard of repairs by dictating membership eligibility relative to investment in equipment. Most unfortunately, this stipulation does not adequately take into account the flow of work that there may be from the motor vehicle insurance industry, and many repairers find themselves having to resort to nefarious means to ensure that business comes their way. The author of this report is a co-owner of an advanced major structural motor body repairer. Rather than stooping to unethical practices, the owners have sought to undertake a position appraisal and gap analysis with the intention of uncovering the strategic alternatives available to their firm. The firm has implemented the strategic choices highlighted by this report to good effect and has enjoyed enhanced revenue streams and business competitiveness as a result of undertaking this exercise. This report serves to document the highlights of that process.
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