Analysis of the Problem How will Aussie Pooch Mobile plan and shape its future expansion?

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HOLY ANGEL UNIVERSITY

ANGELES CITY

AUSSIE POOCH MOBILE

(Case Study 5)

Group 2

Arceo, Alexsandra L.

Jacinto, Charito H.

Maniago, Kim Russel B.

Quiazon, Lady Lin T.

YFRESMAR/TTH – 4:30-6:00 PM

Ms. Cristina Naguit

Introduction

  • Aussie Pooch Mobile Pty. Ltd (APM) was founded in 1991 by Christine Taylor. The company had 125 mobile units in Australia, of which 55 were located in Queensland, 42 in New South Wales, 8 in ACT, 12 in South Australia and 8 in Victoria. In addition, representatives operated another six company-owned units. The company bathed more than 20,000 dogs each month and had an annual turnover of some $3 million.
  • APM specialized in bringing its dog washing services to customers’ homes. Dogs were washed in a hydro bath installed in a specially designed trailer, which was parked in the street. The trailer had partly open sides and roof to provide protection from sun and rain.
  • The fee paid by customers varied from $15 - $30 per dog, depending on bread and size, condition of coat and skin behavior and geographic location, with discount for multiple animals at the same address. Operators also offered free advice to customers about their dog’s diet and health care, including such issues as ticks and skin problems. They encouraged customers to have their dogs bathed on a regular basis. The most commonly scheduled frequencies were once every two or four weeks.
  • New APM franchisees were recruited through newspaper advertisements and advertorials as well as by word of mouth. Interested individuals were invited to meet with a representative of the company to learn more. If they wished to proceed further, they had to complete an application form and submit a deposit of $250 to hold a particular area for maximum of four weeks, during which the applicant could further investigate the characteristics and prospects of the designated territory.
  • The company had set a minimum educational requirement of passing Year 10 of high school. Taylor noted that successful applicants tended to be outdoor people who shared four characteristics. These are: self-motivated, outgoing, desirable of characteristics included people skills and patience and a good telephone manner.
  • The company advertised Aussie Pooch Mobile service in yellow pages as well as paying for listings in the white pages of local phone directories. It promoted a single telephone number nationwide in Australia, staffed by an answering service 24 hours a day, seven days a week. APM also offered expert advice on local advertising and promotions and made promotional products and advertising templates available to franchisees.

Background of the Problem

  • A key issue facing its managing director, Christine Taylor, and members of the management team was how to plan and shape future expansion. One question was whether to adopt a formal strategy of appointing master franchisees. For some years, Taylor had been attracted by the idea of expanding internationally.
  • As the company grew, the directors knew it was likely to face increased competition from other providers of dog washing services. But as one successful franchisee remarked: “competition keeps us on our toes its hard being in the lead and maintaining the lead if you haven’t got anybody on your tail.”
  • Taylor had no plans to increase number representatives. The representatives were generally individuals who either could not currently afford the start-up cost or who were being evaluated by the company for their suitability as franchisees.
  • Although many dog owners had traditionally washed their animals themselves, there was a growing trend towards paying third party to handle the risk. Dog washing services fell into two broad groups. One consisted of fixed-site operations to which dog owners brought their animals for bathing. The second type of competition, which had grown in popularity in recent years, consisted of mobile operations that traveled to customers’ homes.
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Statement of the Problem

  • How will Aussie Pooch Mobile plan and shape its future expansion?
  1. In planning for future expansion, how will APM expand internationally?
  2. How can APM attract and encourage interested individuals to engage in franchising business?
  • How can APM gain sustainable competitive advantage in spite of stiff competitions?
  1. How can APM respond to increased competition from other providers to dog washing services?
  2. What may be other ways that can APM do to adopt in this competition?

Analysis of the Problem

  • How will Aussie Pooch Mobile plan and shape ...

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