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ECOMMERCE FINAL PROJECT

RARE SPARES
Submitted To: Dr. Zainab Riaz

Submitted by: Hamza Hamid Haris Bin Saqib Malik Hassan Muhammad Awais Usman Aslam 31st, May, 2012

RARE SPARES 2012
Acknowledgements
For our final project of Ecommerce, First we would like to thank Almighty Allah, Who gave us the strong will power to carry out this project. Secondly we would like to thank Dr. Zainab Riaz for providing assistance throughout this time and being the sole guidance for all of us all this time. We thank you Dr . Zainab for letting us perform all the theoretical concepts practically.

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Table of Contents
Introduction:.................................................................................................................................................. 4 Concept: ........................................................................................................................................................ 4 Business Model: ............................................................................................................................................ 4 Market Research: .......................................................................................................................................... 4 Brainstorming part: ....................................................................................................................................... 9 Formalities: ................................................................................................................................................. 10 Marketing Strategy ..................................................................................................................................... 11 Where Are We Now? .............................................................................................................................. 12 Where we want to go: ............................................................................................................................ 12 How and when will we get there? .......................................................................................................... 12 Market Positioning:..................................................................................................................................... 13 Mission: ...................................................................................................................................................... 13 Vision: ......................................................................................................................................................... 13 Marketing Mix: ............................................................................................................................................ 14 Customer/people: ................................................................................................................................... 14 Location/place: ....................................................................................................................................... 14 Promotion: .............................................................................................................................................. 15 Price: ....................................................................................................................................................... 15 Competition: ............................................................................................................................................... 15 Website: ...................................................................................................................................................... 17 Business Process: ........................................................................................................................................ 18 People: ........................................................................................................................................................ 20 Budget and Finances .................................................................................................................................... 20 Domain Registration Process: ................................................................................................................. 21 Website maintenance costs and fee charges: .......................................................................................... 21 i) Software:.......................................................................................................................................... 21 ii) Hardware: ....................................................................................................................................... 21 iii) Fee charges: ................................................................................................................................... 22 Salaries for employees: ........................................................................................................................... 22 Rent: ........................................................................................................................................................ 22

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Delivery Cost: ......................................................................................................................................... 22 How will we fund our business? ............................................................................................................. 22 Start Up Cost:.......................................................................................................................................... 23 Future Aspects: ........................................................................................................................................... 23 Appendices:................................................................................................................................................. 24 SWOT analysis: ............................................................................................................................................ 24 Strengths ..................................................................................................................................................... 24 Weakness ............................................................................................................................................ 24 Opportunities ...................................................................................................................................... 25 Threats ................................................................................................................................................ 25 Questionnaire ......................................................................................................................................... 25 Facebook page: ....................................................................................................................................... 27

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Introduction:
Rare Spares is a Business Idea that will use the online platform that will provide a free platform for people to compare prices and buy the spare parts of their need sitting at home. The concept is to provide a quality service to our customers so they can buy spare parts easily with less fatigue. The parts list will be available on the website along with the prices. Once the customer becomes the members of www.rarespares.com they can be able to access the whole website and will be able to make a transaction.

Concept:

Business Model:

Market Research:
In order to know the feasibility of our business idea we have done a market research for which directed a survey among the university going students, As university going students are the youth and they live a fast and spontaneous life so online spare parts idea is directed to make their life easier. For this, we asked 60 people. Our first question was related to the Vehicle availability to know how many students have a vehicle of their own? We have seen that majority of university going students have their own personal vehicle as out of 60 students 55 have their own vehicle and only 5 students don’t have a vehicle.

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Second question was regarding the maintaince of the vehicle . So according to our survey we found out that 46 of the students among the 60 students regularly maintains their vehicles .

Next Question is regarding the frequency of car breakdown faced by the students. Only 4 students said they frequently faces a car breakdown, 15 students said they rarely faces a car breakdown, 31 students said they rarely faces a car breakdown and 9 students said they never faces a car breakdown. In previous question majority of students responded that they regularly maintain their vehicles so we can see a very small proportion of students who faces a car

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breakdown.

Next question was regarding the breakdown of car that in case of any breakdown who repairs the car to know who repairs the car in case and we found out that it was equally balanced. 24 students repair their own car, 21 student’s repairs their car through driver and 15 students through other family members. So Rare Spare will make life easy for all of them by providing an online platform where they can shop with ease.

Next question was regarding the difficulty in finding the appropriate spare part for the vehicle and we found out that majority of students faces difficulty in finding the spare part for their vehicle . Out of 60 students 44 students responded yes which clarifies that current market structure for spare parts is not viable so it also corelates with our idea and hence will increase the hype of our business in the market.

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Next Question was regarding the comfort level of customers buying spare parts online. So in respond of that we find out that again majority of customers are comfortable buying spare parts online. Out of 60 students 40 students are comfortable so these figures also encourage us to open an online spare parts shop.

Next question was directed to know whether people prefer Original Company’s certified part of inexpensive parts. In response of this question we founded out that again majority of students prefer high end Quality Company’s certified part over fake ones so we will import the original parts from Japan and supply directly to our end user.

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Our last question was regarding the mode of payment that student prefers. The results were quite expected regarding the Pakistani market, people preferred on delivery payment through cash the most as it is most feasible method for the Pakistani market. Out of 60 students 47 students opted for on delivery payment and 8 students opted for credit card. Credit card concept is not feasible in Pakistan due to fraud and other issues so we will also choose on delivery payment through cash as a mode of payment.

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Brainstorming part:
Our idea is to open up a business of spare parts. We will be providing spare parts for Japanese cars’ whose parts are unavailable or availability is very limited. Lately we have been seeing a lot of Japanese cars being imported in Pakistan; from brand new to five years old models. With the exponential flooding of imported cars on road, no one has ever thought about their spare parts. Once you’ve broken down your car, that’s the time when you realize you are in trouble. There is availability of new parts unless you know some inside dealers who would import them for you which is extremely rare. Keeping in mind these issues, we have come up with this business plan of ours; importing spare parts of imported cars for public. Through our research we have concluded that the idea is welcomed by the masses. In this era of internet people want things to be done with just one click. This is what are offerings are based upon. You need a part, open up our site, tell us what you want and we will be delivering it to you on our promised time- with far less hassle. This is a very innovative and unique offering till date- one major reason that it will be welcomed by our potential customers. Today we see many imported vehicles on road. The market for those vehicles spare parts is getting wider. There are places in Lahore and Rawalpindi where almost every vehicle part is available but they are not new and original. Plus one has to go through much of hassle to reach those inner city places. Considering an owner of such a vehicle, he would be reluctant to use a second hand part for his imported car. Secondly, people hardly have time to go to such crowded markets and find one suitable part for their car. Moreover many people get ripped off because they have no knowledge about what they are buying. Every other shopkeeper promises about their product’s originality but trust it one main issue when buying from such shops; one is never satisfied. Such problems would not exist in our offerings. We will gain our customers trust by providing them with the original receipts of the parts we are selling. Plus they need no to take time out of their busy routines. They will be just one click away from buying a part and getting it delivered to their place of choice.

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We have many reasons to think about why our plan is going to work. Some of them have been discussed earlier such as time constraint. In this face paced environment, every one id so busy that they hardly get time to visit market to shop for their broken vehicle. We have surely provided a solution for this problem, online shopping. Tell us what you want and we will deliver it to your place of choice. Our idea will work because the popularity of imported vehicles is increasing day by day, mostly because of rising prices of local prices and high quality of imported vehicles. This means the market of spare parts of imported vehicles will be increasing in the future. This reason goes a lot in the favor of our business. The trend of online shopping is increasing such as clothes, accessories, laptops and mobiles. An online shop for spare parts will be highly welcomed. We have many reasons to believe why our business would work. As much as we are positive about our business’ success, we are aware of things that can go against our idea too. Number one concern regarding our plan is what if there is curtail or ban in imported vehicles by the government in future. That will affect negative impact on our plan. There won’t be any new vehicle whose spare parts would be needed by out customers. We have to keep this in mind considering the political unrest in our country. There even can be ban on private imports of spare parts by the authorities. One another major concern is what if the authorized dealers such as Honda and Toyota Motors start importing imported vehicle’s parts for public. That will bring our business down as people will be keener to buy parts from them. These reasons will be vital for our business. Any change in import policies by the government will greatly affect us. But keeping in mind past trends, no such thing is expected to happen in near future. Finally we hope to have a wide base of customers. Our customers will be bonded to our business through trust. In future if the trend of online payment starts, we can imply that too in our business. Once our popularity increase and revenue starts flowing in, we can look forward to importing cars for our customers too. A small showroom will boost our sales.

Formalities:
Then name of our business is “Rare Spares”. Our domain name would be rarespares.com which is currently available.

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We will be registering our domain through the company; their site, http://www.nexus.pk. The company will be charging us fourteen hundred and twenty five rupees initially and then eight hundred and fifty five rupees every year for the domain. To open up a business in Pakistan, firstly one has to register the company name through Securities and Exchange Commission of Pakistan through online services. Then digital signatures will be received through National Institutional Facilitation Technologies (NIFT). After getting the digital signatures done the most important step comes, registration for the income tax after applying for the National Tax Number (NTN). Then we will register our Sales Tax Number (STN) through Federal Board of Revenue located in Rawalpindi. Lastly we will register our professional tax with the Excise and Taxation Department of the district. These are some of the common legal formalities done to start any sort of a business. These formalities will be done by our company as well. We will be opening our business account in Standard Chartered and Barclays. As we will be dealing in international transactions too, we will have multiple accounts. Because of the nature of our business, we would not need any kind of insurance services. So for online transactions and cheque payments we will use these accounts. In japan, we will have our dealers who would be providing us with the parts we need. Once our customer orders us, we will first check it out first from our warehouse that whether the part is available if the part is available we will provide it to the customer and if the part is not available then we will order it to our dealer in Japan, he will take the order and ship us the order in coming days and after the arrival of order we will deliver it to our customer and receive payment on delivery. We will our dealers online. We will try hard to get a license form Japanese motor companies as their licensed spare parts dealers in Pakistan. This will boost our sales exponentially as the element trust will rise. The risk of failure will be minimized and we will enjoy higher cash inflows.

Marketing Strategy

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Where Are We Now?
As Pakistan’s auto mobile market is tapping on Japanese cars , both refurbished and new. W e are the first online platform to provide them will both used and New genuine company certified spare parts to fulfill the customers desirables and also to make cars to perform better for years without any problem. This will provide a hassle free way for people to compare prices and buy the spare part of their need while sitting at home. This will be a very different approach to buying spare parts that exists currently. As of now, people have to go through a lot of trouble to get the spare parts they require, for example going to congested markets of inner Rawalpindi (in case of Islamabad). There is no price transparency and every spare part dealers is charging the price he wills and the one he can bargain on. With this website we will ensure a hassle free, quick and price transparent one stop shop for spare parts buyers. Hence this business is targeted directly to market gap that is untapped as yet.

Where we want to go:
As for the future prospect we want to deal with not only in parts but importing vehicles from country like Japan china And USA to the local customers. Not only in the twin cities of IslamabadRawalpindi but Nationwide. So in short we want to Expand both geo graphically and offering a complete package. Plus we will offer a complete bundle i-e fabrication, high performance parts for racing community.

How and when will we get there?
Owing to this demand we suggest that there is a dire need for a platform for people to buy spare parts for these cars. Given that this is the only known hindrance in the sales of these cars. If such an entity is created, it will increase the sales of these cars and that will boast the sales of spare parts. What we expect to do:   We will import spare parts from japan directly for all the Japanese cars that are being imported in Pakistan and also for the cars being assembled here. We will be either having a warehouse where we will stock the spare parts that are more commonly needed.

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    Or we can go for a just in time process by which we have links with producers in japan and we import on order. A website will be created for the purpose of sales; this will be an extensive database of all the spare parts, their prices and all the specs. The parts bought on the website will be delivered to the buyer’s doorstep within a specific time period, free of cost. Since the concept of credit cards is not that common in Pakistan yet, hence we will be offering payment on delivery service to gain confidence of the customers. If in future people feel more secure using credit cards, we can incorporate that model into our business as well.    We also expect to have some sort of partnership with www.pakwheels.com to promote our website. This will provide us with the huge database of car owners and potential buyers. Other than this, we can also partner with car dealers to make sure they refer their customer to our website and we can have some referral fee contract. Lastly we can also provide spare parts to local service shops in bulk and on discount prices to cater to the market that does not have access to internet.

Market Positioning:
Rare Spares aims to deliver high quality experience to its customers. We aim to develop a high quality brand image in the mind of our customers. The price of the parts will vary from customer to customer as its their choice to select the part of their choice but Rare Spares will never compromise on service and will try to make a good image in the minds of customers.

Mission: “Is to provide leverage to our customers by providing them quality products with a quality service.”

Vision: “To serve the automobile market in order to gain the maximum Market share of Spare parts industry in Pakistan”

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Marketing Mix:
Customer/people:
Our target is such segment of the market that has a special taste for imported cars and that wants to be different and unique in terms of Performa because imported cars come with a lot of other feature and there durability is relatively good w.r.t to the cars that are manufactured in Pakistan. The firms’ target audience is the upper and upper middle class or anyone who can afford such cars(mostly male), between the age group of 18-50 years, as these imported cars are quite expensive and there spare parts are not easy to find or available in the market . Most of these customers are frequent users of the internet and are well accustomed to online purchase. This segment has a great demand for imported automobiles.

Location/place:
Our website would be accessible to all the people interested in buying imported cars spare parts. We would import in bulk, genuine and refurbished company certified parts from other countries like Malaysia and Singapore and there vendors which would reach Pakistan through ship at the Karachi port. From there it will be delivered to our warehouse and then it will be delivered to the designated customer. The customers could also visit the warehouse if they wish to have a check on the final product before making the full payment. Then if our customers are located to other parts of the country, their order would be transported by local distribution system like courier etc., the additional delivery would cost our customers an additional charges according to the charges taken by the courier company., we will not charging any profit on the transportation of the car and instead will cost the customer at cost of the distribution. This is how the distribution of our product would take place. We would also have a toll free number where our customer service personnel would be present 24 hours a day and 7 days week. There the customers can inquire about their order being delivered or the details of shipment of certain order, report complains, if any, about its working and get appointment for the repair and maintenance purposes.

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Promotion:
Our website would be made in such a manner that it attracts a large number of audiences, by providing them with different packages for their product. We would highlight the brand name and make it easy to navigate for our customers. We will advertise online, by placing banner ads on the sites of other businesses which are frequently visited by the market segment we are targeting like Pakwheels.com. Social networking sites like Facebook can also be used to promote the idea and appointing different importers as representatives can also help in making the business more popular. We would also focus on placing our ads in different online magazines related to sports, news and cars. We would introduce our website and our business plan on different blogs and discussion groups especially the interest based communities to attract the people who are facing problems regarding finding the genuine spare parts for their cars. This would help our idea to penetrate into the market we are targeting. We can then easily pull people interested in our service to visit our website and be attracted by the number of different facilities and offers we provide. In addition, we will host car shows in twin cities that will help us get access to our target market and promote our brand there. We will also send monthly updates to its members regarding new accessories available, any upcoming deals and other interesting news about cars and there spare parts that might interest members. The website will be an interactive interface where members can upload videos and pictures of their imported cars and share their shopping experience with other members.

Price:
Prices will be fixed and it will vary from customers to customers. As Rare Spares is providing a vast range of spare parts so developing a one appropriate pricing strategy is not possible. We will charge the same price to our customers the price Japanese dealers are charging but with that price we will charge some commission for our services . We will make sure the price transparency in our website.

Competition:

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Since the beginning of the millennium, there has been a changing trend in customer preferences and buying behavior. With amplified use of internet and greater access to the worlds’ media through cable networks consumer awareness is increasing and there is a shift towards durability and performance of there auto mobile.. Most of the people, especially the upper class wants to be unique and different from the masses. This trend has led to an increased demand of durable yet luxurious cars world over and is now penetrating the Pakistani market as well. Local workshops are the major competitors for sultan,s well.com, as they customize cars according to personal demands i-e using inappropriate local parts Most of the cars which are imported by the users are Honda, Toyota and Suzuki that are the major cars of the market and also manufactured in Pakistan. But These local models are not very up-to-date and lag a lot of features that a model of same car imported from Japan or any other country in the world. Local mechanics charge a high price for such modifications as the accessories are usually expensive. Two major areas in Rawalpindi that provide such facilities are Sultan ka Kho (near Raja bazaar) and Azhar Market (near Saddar). If these parts are not available in these ares so the next oppiotion is to get it from any other city like Karachi and peshawar, the largest markets for auto spare parts and accessories (the Shershah Market Karachi (near Komair town)and Khyber bazar Peshawa)r. These local workshops have no brand names or websites. The customer has to purchase various parts and accessories from different shops located near the workshop. The target market of these local workshops is the people between the age group of 18-60 years. The core competency for these competitors is the cheap labour and zero inventories as workshops are generally located in areas where other spare parts and accessories stores are close by. In addition, there are second hand accessories and spare parts that can be bought at cheap rates but most of them are not authorized or certified by company for example they can sell you a fake local part calling it made in Japan because most of the customers are not very well aware of the quality and manufacturer or the part. This example of the local market is not synonymous to Rawalpindi but it is synonymous to the entire Pakistan. So this means that there are uncounted numbers of shops which do such practices but what sets us apart from them is that we offer our services in a better and systematic way. This means that our business gives greater reach for our operations, while doing this we also ensure highest quality as we have joined hands with foreign authorized vendors and manufacturers so that quality and originality of parts can be known to the customers as we will show the certificate and order receipt of the spare part so they can check the

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authentication of the spare part. We offer full bundle of product as some part needs extra peripherals like pipes or special nut bolts that are not available in local markets. There are no brand-name competitors in the market providing such services most of the dealing took place online by some virtual communities like Pakwheels.com where there is no fixed price for specific spare part as rate defers from seller to seller. In addition, only few companies like Pakwheels.com are operating through online channels and they too are involved in other forms of business like selling of used cars and providing customers information like car ratings etc.

Website:
For us, our website stands at the heart of our business and we have payed attention to every minute detail yet kept it as simple as possible for our customers. We will register the domain name www.rarespares.com.pk and the cost of web hosting is later discussed in our budgeting section. ContentOur website provides a brief description of our business in the ‘About’ tab and our offerings in the ‘What we do’ tab. We have listed all the information regarding the spare parts and categorized them according to car brands under the tab ‘Search by Brand’ and also according to spare parts under the tab ‘Search By part’. They will be able to order the product just by clicking on it and adding it to the cart, order confirmation will be achieved through email. Then we have a tab named ‘Track Order’ which deals with transactions which are in process and helps customers track the progress of their order. All orders require customers to be signed in as members so that we can track them down. The ‘Login’ tab has both members’ login as well as registration form for those who are new to our website. Above that, only registered members can comment and add posts to our forums under the ‘Forum’ tab, whereas nonmembers can just read through restricted material and access limited areas. Finally we have a tab for people who would like to contact us for queries and suggestion named ‘Contact Us’. ImageAs our brand is all about customer convenience, we have made our website in such a manner that every part of it portrays this message. The tabs are such that they allow detailed search by both part as well as brand. We have used pictures to explain the products better and under each tab there is a relevant pictorial representation of the product. We have forums on our webpage which will allow our members to interact with each other and with us as well, providing us feedbacks and suggestions. Hence we have focused our website on convenience, style and customer centric business orientation.

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Listing on search engine and updatingFor gathering new customers and enabling people to search us up, we have decided to list our website on www.google.com under the ‘150,000 queries per year’ option that is for about $750 per year. We have chosen Google as our preferable search engine since it is the most known and frequently used among our prospect customer base. We are planning to hire 2 web designers who will be updating our website twice every day. This is a necessity as we need to keep our customers up to date with their ‘in process’ orders. Not only that, but we also need to update our prices and spare parts database so that it is always current. Members’ privilegesWe have special offers for our precious members which range from active participation in Forums and testimonials to special discounts.

Business Process:

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Customer Browses Website

Customer Places Order

Manager Checks Inventory Product Not in Stock Product in Stock

Final details communicated to Customer for Confirmation

Query Sent to Japan for Part

Not Confirmed Customer Confirms Order disposed Product Shipped to Customer through freight forwarder or Company Delivery Staff Not Confirmed

Quote received from Japan forwarded to customer for confirmation

Confirmed

Part Ordered Customer Checks Order & Pays On Delivery Part Cleared at Customs & Shipped to Customer

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Customer Checks Order & Pays on Delivery

People:
The people we will need for our business will be:

1. A manager for the warehouse who will get the order inquiries from the local market and tell the workers at the warehouse to get them out and give it to the delivery boy . If the parts are not in stock then the manager will send an inquiry to japan and order them asap and tell the customer an estimated date of arrival . he will answer to us.

2. An accountant for managing all the international payments to japan and looking after the payments here and all the cash inflows from sales etc and the outflows (rent , bills , salaries etc). He will answer to us

3. Two or three delivery boys for local deliveries and going to a company like tcs if the shipment has to go to another city . they will take the payment from the customer and give it to the accountant

4. A guard for the warehouse . will be answerable to the manager

These people will work on commission basis: a contact in customs for clearing out all the parts . Will get paid on every shipment cleared

Budget and Finances
One of the most critical and important part of any business is the financial part of the business and its viability. Our main focus it to provide quality service to our customers and develop goodwill among the customers. We believe that in order to sustain in the market high

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profitability so we will continue as a private limited company and target the untapped market. Overall it will be a low investment oriented business .Some of the Costs that we will increment in the start is as following. Domain Registration Process:

Initially we plans to buy a domain for our business (Rarespares.com) from NEXUS Pakistan, NEXUS Pakistan is one of the major webhosting firm operating in Pakistan. We just need to order domain and in accordance with the availability we will but it. For domain cost will be $14.99in the start, all we have to do is order our domain, if it’s available we will be able to buy. Domain charges as priced by nexus.pk are $8.99 which are almost equal to R.s 855/- for 1 year. Accessed at 31/05/2012 (http://nexus.pk) Website maintenance costs and fee charges:

Now as we are done with the registration of domain but still there will be some additional cost incurred in order to manage the website. The cost for managing website can be divided into Software and hardware. i) Software:

For Software one appropriate cost can never be determined as there are many aspects which are Troubleshooting and debugging. It is extremely difficult to determine the cost of it as it depends on the magnitude of the problem as it varies from situation to situation. ii) Hardware:

As the whole business will be done online so it will increment additional cost such as the cost of all the computers, cost for all the LAN switches and other related output devices.

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iii) Fee charges:

As once we were done with registration of domain, we need to give the domain charges annually which are $14.99 per year according to nexys.pk. Then on yearly basis we will pay the domain charges. Salaries for employees: As our business will be operated online so we will hire two web designer with the appropriate expertise, we will give each of them a salary of Rs 15,000/month. According to our understanding in the starting of our business two web designers will be enough to maintain our website. Rent:

We will operate major component of our business online so there is no need to have a proper office for our business we intent to rent a small office with two rooms one will be our small office and other will be the warehouse. As in start the magnitude of our business is small so one warehouse will be sufficient so with the growth of business we can change the warehouse. Approximately it will cost us round about 40,000. Delivery Cost:

On customer’s demand we will import spare parts from Japan. Our focus will be operate on demand so when the shipment of the order will be done and we have the order we will deliver it to end customer by our own and will add the charges to customer’s bill. As initially we will be operating in the domain of twin cities i.e. Rawalpindi and Islamabad so logistics will not be a big issue. How will we fund our business?

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After analysing all the components involve in our business, we came to conclude that there isn’t a need of high investment to start Rare Spares. In starting we need nearly an investment of 0.2 million which can be easily financed. We will particularly apply for loan and if we faced any kind of difficulty in approval of loan we will start it by our own. It’s not a big investment so we also plan to utilize our personal belongings in order to start the business. Thus the magnitude of business is small so collecting funds for the business is not a big issue. Start Up Cost:

Expenses Website domain Computers LAN connection Salaries Rent Office Equipment Internet Charges Total Start Up Cost

Quantity Charges Total 1 1425 1425 3 40000 120000 1 2000 2000 5 25000 1250000 2 20000 40000 2 12000 24000 1 1000 1000 323425

Future Aspects:
Initially we are planning to limit our business with in the twin cities i.e. Rawalpindi and Islamabad. In start we plan to generate goodwill by delivering quality experience to our customers. We will try to be profitable with in our limited domain then seeing the profitability we will expand into other markets such as Lahore and Peshawar. We are optimist regarding our future that Rare Spares will gain popularity in the general public as Rare Spares enables customers with huge variety of spare parts and at the same time customer’s life will become much easier as they have to just place their order. As now our magnitude of operation is limited so now we have only two rooms but as our operations expands we will enhance our area and broader our size. Now we are only importing the demanded

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parts following a demand push strategy but with the passage of time we plans to import spare parts in bulk in order to minimize the cycle time. Other than this, we can also partner with car dealers to make sure they refer their customer to our website and we can have some referral fee contract. Lastly we can also provide spare parts to local service shops in bulk and on discount prices to cater to the market that does not have access to internet.

Appendices:

SWOT analysis: Strengths
The strength of this business plan is the uniqueness of the idea. The thought that the spare parts of different imported cars would be brought from overseas which are certified good in quality and price effective would be made in very distinctive in nature. Customers can themselves make their own order online and track it. so see where and when the will receive there order and is that order authenticated or not. Hence, this distinguishing presentation of the website would act as a powerful strength for the business.
Weakness

The mode of making payments for their order by the customers acts as a weakness for the business. The customer might be hesitant about the fact that they need to make their transactions online. They would face trust issues and have problems regarding the internet fraud that has become quite prevalent in the online business. Hence, the customers would become reluctant to place an order online when they cannot actually have a face to face interaction with a salesperson with which they could discuss each and every detail and then sign a contract. Hence to counter these problems, we would introduce certain security checks to enable the customers to make their payments without the risk of any loss. (Also the option of transferring

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money into account, cash payment and pay orders will give more options to the customer) all the information regarding the customers would be made private and confidential. This will reduce the customers hesitant of making orders through our website.
Opportunities

With the advancement in technology and the widespread use of the internet, the e-commerce businesses have gained a lot of importance and popularity. This would provide our business with an opportunity to exploit. Moreover, it is also a common fact that people do not have much time to spare. They have a lot of work and things to look after. So they find it feasible to for online and search thoroughly for a commodity they are spending thousands on. They could go online and search what they want and can get. Our website would help them solve this problem by providing them everything they need on one platform, from the hassel of finding the right and original parts for their car .
Threats

Threats for this business would mostly be faced in the import of the bulk and scrap of used cars from overseas. The delay in transportation of bulk due to certain international reasons could hamper the manufacturing process of the business making the customers displeased with our service. Economic crises, world recession and political chaos of our country can also affect the prices of our raw-materials adversely and increase the costs of our business. The political instability in our country and the changing governments can also affect the way we conduct our business. As the governments change, the rules and regulations of doing business might change as well, which would negatively affect our operations? Terrorist attacks and bomb blasts in the country can also be a major threat to our everyday operations causing us to incur a loss.

Questionnaire
This survey is designed to explore is there any need of Online spare parts platform 1. Do you have a Vehicle?  Yes

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RARE SPARES 2012
 No

2. Do you regularly maintain your vehicle?  Yes  No 3.     4.    How frequently you face a car breakdown? Frequently Occasionally Rarely Never In case of any brake down who repairs the vehicle? You Driver Other Family member

5. Have you ever faced difficulty in finding the appropriate spare parts for your vehicle?  Yes  No 6. Will you be comfortable buying spare parts online?  Yes  No 7. Would you prefer original company's certified parts over inexpensive fake parts?  Yes  No 8.      Which mode of payment will you prefer? Credit Card Pay order Cheque On delivery payment (cash) On delivery payment (cheque)

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RARE SPARES 2012
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RARE SPARES 2012

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