BUSINESS MODEL TRANSFORMATION IN CAR SERVICES: FROM LOCAL SHOP TO SCALABLE BRAND

Abstract

The automotive service industry has significantly transformed in the last decade, mainly by introducing new technology, altered consumer demands, and the necessity of heightening or scaling down operations. Small, independently owned local workshops have long characterized the industry, but how value is created, delivered, and captured is now experiencing a significant change. This study examines the business model discussion of the automobile service industry concerning transforming local stores into national scalable and distinctive brands that can extend to greater regions. A qualitative multiple-case study was used to analyze three car service companies in sub-Saharan Africa that have grown known brands out of their small businesses. The interviews, financial documents, and customer feedback were used as the sources of information, which were analyzed using Business Model Canvas and SWOT framework. The results show that digital integration, the standardization of the processes, the model of franchising, and the relationship with customer-centered innovations may become the drivers of scalability.

Nevertheless, issues like scarcity of resources, skills shortages, and stable service quality levels at each service point remain. The research adds to the literature on service business innovation, providing valuable experience to aspiring, budding entrepreneurs, investors, and policymakers to innovate their car service business or diversify given modernization. It establishes that transformation is not a standard procedure but requires a strategic fit to market situations, technological preparedness, and customer requirements. This paper also discusses The usefulness of branding strategies in line with operational practices to achieve sustainability and expand the ever-changing automotive service environment.