HUG MOTOR FRANCHISING STRATEGY

• Main Author: PRANANTA (NIM : 29106425); Pembimbing: Alibasjah I. Soedjarno, MM, SANDY
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/19421
• Institution: Institut Teknologi Bandung

Hug Motor is an automotive service company located at Jalan Surapati, Bandung, Indonesia. It provides car wash, automotive detailing, maintenance and oil change services. Automotive service industry is highly competitive due to low barrier to enter and exit the business, yet with the success of its business, Hug Motor feels the need to implement a rapid growth strategy while conserving financial capital requirements necessary to achive the growth. Franchising has proven to be a significant method in securing capital requirement for new outlet growth. Franchising involves 5 important systems that will be transfered to franchisees; maketing, employee training, standard operating procedure, technology and supply chain. The success of the business will largely depends on how well each store can deliver services to customers through those systems transfered by the franchisor. Proper strategy needs to set up from the begining to avoid mistakes made when Hug Motor transfers the systems to franchisees. This final project tries to design the right business strategy before Hug Motor franchises its business. Alternative business solution is being done by using SWOT Matrix to first figure out the internal and external factors of the business environment, then using the SWOT Matrix to assemble TOWS Matrix in order to excavate the proper business strategies necessary to cover all those internal and external factors. Finally, the business is ready to be implemented. Implementation of this project involves two phases. The first phase is constructing a pilot project. This pilot project will be an important learning curve for Hug Motor to make sure that all internal and external factors are covered in real business situations. The second phase will take place when Hug Motor is ready to take the business model to prospective franchisees. With the success of the pilot project, Hug Motor will have one of the most important tool in franching its business, i.e. a proven business model. Challenges remains on how aggressive Hug Motor will apporach prospective buyers. Moreover, it is important that Hug Motor continues doing research and documents every new method that comes up along the way, such as training, operating and marketing methods, in order to survive for in the long run in this highly competitive industry.