ACKNOWLEDGEMENT

We first of all thank ALLAH Almighty, The Greatest, for the strength and skills he instilled in us which enabled us to carry out this mammoth project in due time. Secondly we would like to acknowledge the guidance and confidence provided by our lecturer Mr. ARIF VASEER. Thirdly we acknowledge the support and encouragement from our parents and friends, whose support and prayers gave us energy to complete this project within time.

Dedication We dedicate this project to MR.ARIF VASEER, our inspiration and to our parents and all those who supported us in any way to carry out this project

Table of contents
Executive summary___________________________________________________ 5 Introduction_________________________________________________________ 6 Introduction of the project____________________________________________ 7 Cactus Car wash___________________________________________________ 7 Objectives___________________________________________________________7 Customer Analysis__________________________________________________ 8 Major Segments__________________________________________________ 10 Demographic Segmentation___________________________________________10 Economical Factors_______________________________________________ 10 Technological factors_______________________________________________ 11 Political Factors__________________________________________________ 12 Ethical/Legal Factors_______________________________________________ 12 Social/Cultural factors______________________________________________ 13 Motivation and Unmet Needs_________________________________________ 13 Competitor analysis__________________________________________________ 14 Existing and Potential competitors_____________________________________ 15 Growth trend______________________________________________________ 15 Market and sub Market Analysis________________________________________17
Attractiveness of the Market___________________________________________18

Market Size______________________________________________________ 19 Market trends____________________________________________________ 19 Market Growth Rate_______________________________________________ 19 Market Segments_________________________________________________ 20 Market Profitability________________________________________________ 20 Industry Cost Structure______________________________________________ 20 Success Factors___________________________________________________ 21 Environmental Analysis______________________________________________22 Environmental trends in Pakistan_____________________________________ 23 Current Issues in Pakistan____________________________________________23 Pollution_________________________________________________________ 23 Environmental threats to Cactus car wash in Pakistan______________________ 24 Major Strategic Uncertainties_________________________________________ 24 Contingent plan For Environmental issue in Pakistan_____________________ 25 Internal Analysis___________________________________________________ 26 Tunnel equipment__________________________________________________27 Starting a car wash__________________________________________________28

Strategy Development ______________________________________________ 31 Strategy Competitive Advantage_____________________________________ 32 Core competence__________________________________________________ 32 Distinctive competency_____________________________________________ 32 Value Proposition_________________________________________________ 32 Porters Five Forces_________________________________________________ 33 Porters Five Forces Overviews_______________________________________ 34 The Threat of the Entry of New Competitors____________________________ 34 The Intensity of competitive Rivalry __________________________________ 34 Threat of substitute Services_________________________________________ 35 The Bargaining Power of customer___________________________________ 35 Bargaining Power of Suppliers______________________________________ 35 Value Chain Analysis_______________________________________________ 36 Primary Activity_________________________________________________ 37 Supply Chain Management__________________________________________ 37 Support Activity_________________________________________________ 37 Systems Development_____________________________________________ 38 Human Resource Management and General Administration______________ 38 Blue Ocean Strategy_____________________________________________39

Executive Summary
We are group of three entrepreneurs with belonging to different backgrounds. Our study focuses on lunching an American firm cactus car wash in Pakistan. we have chosen the automatic car washing industry. As it is well known that people meet their car washed quickly and efficiently. yet the automatic car wash industry hardly exists. Other than at PSO stations in Karachi know such outlets give this service other than Karachi this is the report based on the required criteria and have included different strategies that we have adopted to launch cactus automatic car wash in Pakistan .

CHAPTER 1:
Introduction

INTRODUCTION OF THE PROJECT

CACTUS AUTOMATIC CAR WASH:In 1996, Frank Lynch built the first Cactus Car Wash in Charleston, South Carolina with a simple goal: provide an outstanding car wash experience. At Cactus Car Wash, the customers relax in a comfortable lounge while the high-tech equipment and highly trained staff clean their cars quickly and thoroughly. Wax and detailing services satisfy the most ardent car-lovers. Before long, Cactus Car Wash became one of the most successful car washes in America. Cactus expanded into the heart of Atlanta in 1998. Once again, Cactus set new standards in customer care, quality and service at the Midtown location. This facility is the busiest car wash in the United States. Today, Cactus Car Wash has seven highly successful locations in Florida, Georgia and South Carolina. The facility, in the exclusive Buckhead neighborhood of Atlanta, opened in fall of 2003 and was one of five businesses named "Business of the Year" by the AtlantaJournal Constitution, the Buckhead Business Association and the City of Atlanta Mayors office for 2004

OBJECTIVES:
The objectives of cactus car wash are: To provide quick car wash Lead in the industry of car washing Cater the segment of middle class. Provide customer satisfaction Attract and retain the potential customers Provide the food which, is the requirement of the customers Provide quick prepared cars in washed form to (working) people Develop and differentiate the organization from others

CHAPTER 2:
CUSTOMER ANALYSIS

CUSTOMER ANALYSIS: Major Segments:DEMOGRAPHIC SEGMENTATION:

Market is divided into groups based on demographic attributes such as age, gender, income, occupation, religion, race, nationality, social class, family size, family lifecycle etc. these factors play an important role in market segmentation. a) Age: We will try to target and focus on each and every age group in the society. b) Gender: In case of gender we would try to focus equally on both males and females of the society and similarly target them. c) Household Size: We would be introducing many family deals, and will try to focus the whole family and not a single family member. d) Occupation: Working class like business men, bank employees, workers in different offices are the prime focus of attention. Because they are usually in a hurry and want to have a car wash before they go to their offices. . 2: Economical factors: The economic environment consists of all factors-such as salary levels, credit trends, and pricing patterns-that affect consumer spending habits and purchasing power. Economic factors also have an indirect affect because if there is inflation then sales and purchases will be affected.

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a) Income: Income level is an important economical factor in determining which is our target market. The target customers for the proposed business are the middle-income people. As the trend of employment of women are increasing especially in middle class. b) Consumption behavior: We would have to estimate the consumption behavior of the people, their liking and disliking and make decisions accordingly. c) Payment Methods: In payment method we will check the behavior of the people while making payments. It checks whether they give it in the form of cash or plastic money. Our target customers will be mostly paying in cash.

3) Technological factors:
a) Pace of change: By pace of change we mean the rate at which technology is changing. Quick service to customers saves their time, which helps in capturing more customers. Latest machines are needed to use to increase sales. It will lead to serve more customers in less time. Technology affects us. World is using new technology to progress. So we will also require new equipment in order to do our work effectively and accurately. As our competitors use new and advanced technology then in order to compete with them and in order to overtake them we will also require advanced technology.

4) POLITICAL FACTORS:
Following are the factors involved in the political factors. a) Government Policies: We would have to obey the policies of the Government as prescribed by the government for running fast food business. b) Price Policies: Price policy is also an important factor. W e will try to maintain and design our price policies keeping in view the income & income distribution of the people living in Rawalpindi and Islamabad. 11

C) Political Stability: If we want to become the leader in the fast food business in Pakistan, then political stability is very important. Therefore in this context political stability is also very important.

5 ETHICAL/LEGAL FACTORS:
Following are the important factors which are included in the ethical/legal factors: a) Business Law: Just like the Government Policies the business units which are working in Pakistan also regulate the law regarding the nature of Business. We will also fulfill this factor. b) Social responsibilities & Ethics: Social responsibilities & Ethics are the important factors. W e will try our level best to fulfill this factor.

6: SOCIAL/CULTURAL FACTORS:
Social/cultural factors include the following factors: a) Social Class: The society has been divided into 3 classes higher, middle and lower. W e have to target those markets which will increase our sales. We will be targeting middle class.

b) Culture: How will people perceive the product? As the continental food is mostly rejected by some people and they are coming towards fast food.

c) Religion:
Religion of 99% people in Pakistan is Islamabad.

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Motivation and Unmet Needs:Car owners are increasingly looking at professional car wash instead of amateur home wash. A survey conducted in America shows a significant decline in car washing at home. Less than 2% of car owners regularly wash cars at home. In Pakistan, the automatic car washing industry is in its primitive stages. It is reasonably expected that the same decline in home wash would ensue once the professionals take this service firmly in hands. The division of labor and specialization in todays world simply does not allow people to be master of all trades. Though the unmet needs of Pakistani consumers have not properly been realized by them, it is only a matter of time before this lethargy is overcome. Furthermore the demographic trends and the accelerating rate of population growth indicate that there will be sharp rise cars on Pakistani roads. Hence the need of car washing is even greater. A minor point is that the landscape of Pakistan is largely dusty and thus requires car owners to clean their automobiles more regularly. This is in sharp contrast to rainy geographic areas of the world like England where there are more opportunities for free natural car washes. To conclude it is high time to introduce the car washing service industry in Pakistan.

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CHAPTER 3:
COMPETITOR ANALYSS

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Existing And Potential Competitors:In Pakistan there is no automatic car washing industry as such. The existing competitors therefore are of no real consequence. There is a more genuine threat of potential competitors though, as other servie firms can easily substitute this industry, thus our company may lose sustainable competitive advantage. From the existing companies it is expected that Toyoto Corolla and Honda service outlets would quickly update their service equipment and would install automatic machinery as they have the financial resources and reputation in Pakistan as a result of decades long commerce within this country. So we, as Cactus Automatic Car Wash must keep a close eye on their activities and forestall their strategic movesThe latest version of the value-added automatic car wash namely Wash Express has been introduced at a limited number of retail outlets to provide a unique experience in terms of a highly automated, state-of-the-art car wash facility at PSO stations with an added dimension of flexibility, convenience and speed. Currently, there are three Wash Express units at Karachi offering a high-tech car wash facility with various value added features and special packages, an experience truly worthwhile! The Auto Car Wash facility is being currently offered at PSO S/S3 (MG Motors), PSO S/S 25 (Ittehad) and PSO S/S 23 (Defence). The first Wash Express plant which was installed at PSO S/S 25 (Ittehad) commenced from September 3, 2007, the objective of this project being to enhance the customer-expectation level, set new benchmarks and of course, above all, to make ones experience even more rewarding, the initial feedback being encouragingeactive strategic moves.

Growth Trends
Many carwashes have seen their sales drop at least 50% during this global economic recession. We also note that the car wash sales figures generally follow new car sales. This is because people who buy new cars want them to look nice, and are willing to spend more money to get their cars washed, and detailed. They are also willing to go with a more deluxe wash, than just a regular wash.

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We all know that car sales in late 2008 took a nosedive, and except for "the Cash for Clunkers" program of 2009, new auto sales have not really recovered. Nevertheless, many consumers who didn't buy a new car, but desperately need one will start to buy more new cars when credit markets become unfrozen, and as more and more people get back to work, and the money starts flowing at a higher rate in our economy. On the facility's front we know that many slated carwash building projects or renovations have been put off, mostly due to financing issues, and the lack of consumer demand justifying the return on investment. Many of the wiser carwash owners who have multiple locations and are used to the business cycles over the years have taken their cash and expanded their facilities during this slow economic time any; knowing that they will need the additional capacity as the market returns. It has been an incredible hit to the manufacturers of carwash equipment during the recession, and several have gone out of business or merged. There are not a lot of sales going on right now, but we expect that to change in 2010, and things to return back to normal for those that are still in the business. The decrease competition may also serve them well, for sticking it out. Obviously, with fewer cars being washed, chemical and soap sales have also taken a big hit. Still, as that volume picks back up, as consumers are spending their money again, and as the credit card companies losen their wallets, you can expect that the soap vendors of the car wash industry will see sunny skies ahead. One trend we also see continuing is the crack down on labor issues in California and continued enforcement almost to the point of harassment of the industy. I hope you will please consider all this and think about the 2010 Trends in the car washing industry.

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CHAPTER 4
MARKET/SUB MARKETANALYSIS

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MARKET ANALYSIS
Attractiveness of the market The is a great measure of profit possibilities that lie within the structure of this particular industry or market. The different factors that contribute to market attractiveness include: (1) Market factors such as growth rate and size of the market; (2) Economic factors such as investment potential and industry saturation or rates of inflation affecting consumers' purchasing power; (3) Technological factors such as availability of raw materials; (4) Competitive factors including the types of rival business and the bargaining power of suppliers; and (5) Environmental factors such as the existing regulatory climate and the degree of social acceptance for a product within a particular market. The goal of a market analysis is to determine the attractiveness of a market, both now and in the future. Organizations evaluate the future attractiveness of a market by gaining an understanding of evolving opportunities and threats as they relate to that organization's own strengths and weaknesses. The result of our market analysis demonstrates that the car wash industry is not saturated by any means in Pakistan. It is expected to grow in large cities on an even higher rate.

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Elements Market size

The most common measure of market size is the sum of the revenues of its participants. The following are examples of information sources for determining market size:

Trade association data Financial data from major players Customer surveys

Market trends
Changes in the market are important because they often are the source of new opportunities and threats. Moreover, they have the potential to dramatically affect the market size. Examples include changes in economic, social, regulatory, legal, and political conditions and in available technology, price sensitivity, demand for variety, and level of emphasis on service and support.

Market growth rate

A simple means of forecasting the market growth rate is to extrapolate historical data into the future. While this method may provide a first-order estimate, it does not predict important turning points. A better method is to study market trends and sales growth in complementary products. Such drivers serve as leading indicators that are more accurate than simply extrapolating historical data. Important inflection points in the market growth rate sometimes can be predicted by constructing a product diffusion curve. The shape of the curve can be estimated by studying the characteristics of the adoption rate of a similar product in the past. Ultimately, many markets mature and decline. Some leading indicators of a market's decline include market saturation, the emergence of substitute products, and/or the absence of growth drivers.

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Market segments
Markets are not uniform. Therefore it is also important for investors to identify and evaluate the various segments that make up the total market. This analysis helps organizations determine which areas account for the greatest share of the market's growth and are more susceptible to change. This information, in turn, helps them pinpoint the most promising opportunities within the overall market and guides the choice of specific investments.

Market profitability
While different organizations in a market will have different levels of profitability, they are all similar to different market conditions. Michael Porter devised a useful framework for evaluating the attractiveness of an industry or market. This framework, known as Porter's five forces, identifies five factors that influence the market profitability:

Buyer power Supplier power Barriers to entry Threat of substitute products Rivalry among firms in the industry

Industry cost structure

The cost structure is important for identifying key factors for success. To this end, Porter's value chain model is useful for determining where value is added and for isolating the costs. The cost structure also is helpful for formulating strategies to develop a competitive advantage. For example, in some environments the experience curve effect can be used to develop a cost advantage over competitors. Distribution channels Examining the following aspects of the distribution system may help with a market analysis: 20

Existing distribution channels - can be described by how direct they are to the customer.

Trends and emerging channels - new channels can offer the opportunity to develop a competitive advantage.

Channel power structure - for example, in the case of a product having little brand equity, retailers have negotiating power over manufacturers and can capture more margin

Success factors
We have focused on the following key success factors in car wash industry: Expertise in carwash technology The scale economies will be maintained through high-tech plants installed at our outlets We possess learning curve due to our previous experience in car wash. High employment salaries will attract skilled labor Favorable locations such as blue area and Jinnah Super will make us highly visible to customers The breadth of our service line will include both automatic and manual car wash facilities for those who cant afford An American firm definitely carries a prestige brand name in itself Our core competence is the economy of time consumption for customers as automatic car wash will not take more than ten minutes whereas the normal procedure prevalent in Pakistan takes at least one hour We focus on after sale service as much as before sale. Our clients shall be kept informed of every new update pertaining to our new offers and we openly acknowledge the value of customer feedback Our customer service department will be highly competent and would place emphasis on filling buying orders. After car wash our salesman will be advised to go to the door of customers Much more advertisements by merging with Shell Any shortcomings in our car wash will be immediately remedied by re washing the car a new Based in America we plan to open franchises in Lahore and Islamabad The services we offer are highly differentiated from those of our competitors We have already designed a user-friendly website We have been patented by the Government of Pakistan

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CHAPTER 5 ENVIRONMENTAL ANALYSIS

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Environmental Trends in Pakistan:Environmental issues in Pakistan threaten the populations health and have been disturbing the balance between economic development and environmental protection.

Current Issues in Pakistan:Water pollution from raw sewage, industrial wastes, and agricultural runoff; limited natural fresh water resources; a majority of the population does not have access to potable water; deforestation; soil erosion; desertification.

Pollution:As industry has expanded, factories have emitted more and more toxic effluents into the air and water. The number of textile and food processing mills in rural Punjab has grown greatly since the mid-1970s, resulting in pollution of its rivers and irrigation canals. Groundwater quality throughout the country has also suffered from rapidly increasing use of pesticides and fertilizers aimed at promoting more intensive cropping and facilitating self-sufficiency in food production. Only just over half of urban residents have access to sanitation, the remaining urban excreta are deposited on roadsides, into waterways, or incorporated into solid waste. Additionally, only three major sewage treatment plants exist in the country; two of them operate intermittently. Much of the untreated sewage goes into irrigation systems, where the wastewater is reused, and into streams and rivers, which become sewage carriers at low-flow periods. Consequently, the vegetables grown from such wastewater have serious bacteriological contamination. Gastroenteritis, widely considered in medical circles to be the leading cause of death in Pakistan, is transmitted through waterborne pollutants.

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Environmental threats To Cactus car wash In Pakistan:As noted above only 20 % of Pakistans water resources are properly purified and drinkable water. We thus face a major threat in acquiring suitable resources of pure water. Deforestation is another issue facing towards us in Pakistan to utilize the paper, tissue and plastic box resources.

Major Strategic Uncertainties in Pakistan:The major strategic uncertainty in Pakistan is given below:

Natural disasters:Pakistan is subject to frequent earthquakes which are often severe (especially in north and west) and severe flooding along the Indus after heavy rains (July and August). Landslides are common in the northern mountains.

Economic Effect:The availability of natural resources is limited by the dry climate and mountainous terrain, substantial population growth is increasing pressure on the resource base, and resource management has suffered from the emphasis on rapid economic growth and often-unregulated forms of economic productivity. Poor agricultural practices have led to soil erosion, groundwater degradation, and other problems that have hindered crop output and contributed to health problems for rural communities. Solid waste burning, low-quality fuels, and the growing use of fuelinefficient motor vehicles have contributed to air pollution that in some cities such as Karachi, Islamabad, Lahore, Peshawar, Quetta, Faisalabad and Rawalpindi has exceeded levels deemed safe by the World Health Organization. And Pakistan is suffering a lot from droughts from the dry climates.

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Contingent Plans For Environmental issues in Pakistan:In order to sustain the above mentioned environmental issues Cactus car wash has three explicit objectives: conservation of natural resources, promotion of sustainable development, and improvement of efficiency in the use and management of resources. The primary agricultural nonpoint source pollutants are nutrients (particularly nitrogen and phosphorus), sediment, animal wastes, pesticides, and salts. Agricultural nonpoint sources enter surface water through direct surface runoff or through seepage to ground water that discharges to a surface water outlet. Various farming activities result in the erosion of soil particles. The sediment produced by erosion can damage fish habitat and wetlands and, in addition, often transports excess agricultural chemicals resulting in contaminated runoff. This runoff in turn affects changes to aquatic habitat such as temperature increases and decreased oxygen. The most common sources of excess nutrients in surface water from nonpoint sources are chemical fertilizers and manure from animal facilities. Such nutrients cause eutrophication in surface water. Pesticides used for pest control in agricultural operations can also contaminate surface as well as ground-water resources. Special attention has been paid to the potential roles of environmental NGOs, women's organizations, and international NGOs in working with the government in its conservation efforts.

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CHAPTER 6
INTERNAL ANALYSIS

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Tunnel Equipment
Odyssey Express & Quicksilver Express Drive-thru Tunnels The new Odyssey and Quicksilver Express drive-thru tunnels provide an economical alternative to the conveyorized tunnel carwash model. As the name implies, these "express" units feature the powerful "Odyssey" soft touch automatic and the smart "Quicksilver" touchless automatic from D&S Car Wash Equipment Company. Both in-bay automatics have demonstrated their earning power and reliability since their introduction to the market in 2005 and 2007, respectively. The result of combining an in-bay automatic with a tunnel concept (minus a conveyor) is up to 50% more throughput, thus greater revenue. Higher revenues can be attributed to a 25% price-per-car increase from the added features of a drive-thru tunnel. Choose touchless or soft touch rollover technology to complement the standard features that include: rinse, wax, and spot free arches, tire shiner, and standalone dryers. Optional equipment to make the express units more efficient, visually appealing and functional are: DSNet Site Management Software, rinse and dryer timers, Intelligent Door Controller, a dryer appearance package, and pickup truck dryer cancel sensor. The new formula for car wash success is the Odyssey Express and Quicksilver Express drive-thru tunnels. Maximum equipment options for maximum revenue!

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Starting a Car Wash

So, car washing is right for you. Excellent! Follow this easy, step-by-step plan for starting up a successful wash.

Step 1: Contact your D&S Distributor Establishing contact with a professional car wash distributor is a good first step.

Step 2: Locate Property Site If you don't already have a location in mind, dont worry. We can help you choose the best or evaluate your proposed location to make sure it is the best possible site for your situation. A qualified commercial real estate agent may also point you in the right direction. See the link in the sidebar for site analysis information. Step 3: Decide on Equipment Now that you know how much land you have, it is time to determine the configuration of the equipment. Your D&S distributor can recommend the right mix of equipment and services that will help you maximize income potential. 28

Step 4: Financing You should already have a pretty good idea of how much of an investment your project will require. We can provide options on helping you secure the best possible loan rate, leasing options or turn-key financing wrapped up in one financial plan. See the link in the sidebar for financing information. Step 5: Site Planning & Building Design Careful planning in designing an adequate building to suit your needs/desires and to provide the highest return on investment should be the focus of your building considerations. We can help you visualize what your site will look like and assist you in the design of your lot, placement of the building and making sure you don't overlook important factors that are critical to your success. See the link in the sidebar for architectural assistance.

Step 6: Construction The pace of your project really picks up during the construction phase. You will need good project management to keep on schedule. Your D&S distributor can help by recommending a qualified local contractor and by providing support during this step.

Step 7: Installation, Training & Start-up The building is up and the equipment is erected and ready to start-up. D&S factoryauthorized distributors are there with you every step of the way, during planning, construction and start-up supervision.

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Step 8: Grand Opening & Marketing We are experienced car care professionals who know what services to offer and how to successfully operate a self-service car wash. We offer total support to first time investors to help them establish profitable locations.

Step 9: Ongoing Maintenance and Chemical Supplies We are available to you for chemicals, replacement parts and ongoing service after the sale to ensure your equipment is operating at optimum levels.

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CHAPTER 7
STRATEGY DEVELOPMENT

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Strategic Competitive Advantage:Competitive advantage is defined as the strategic advantage one business entity has over its rival entities within its competitive industry. Achieving Competitive Advantage strengthens and positions a business better within the business environment. Briefly in Cactus car wash our major assets include tunnel equipment, clean water, foam, car washing machinery etc.

Core Competence:Our car washing company has a core competence in its superior financial resources. We are already based in America and we compete globally so our financial base is strong. We have been in this business for decades and have been fairly established in this industry.

Distinctive Competency:Our distinctive competency lies in our automatic services. This reduces the time consumption of our customers and employees. We our highly efficient in our services for few rivals in Pakistan can compete with our superior services.

Value Proposition:A value proposition is an offer that describes the quantifiable benefits that individuals or organizations making an offer promise to deliver. Its development is based on a review and analysis of the benefits, costs and value that an organization can deliver to its customers, prospective customers As mentioned above we guarantee to provide internationally approved car wash.

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CHAPTER 8
PORTER FIVE FORCES

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Porters Five Forces Overview:Porter's five forces is a framework for the industry analysis and business strategy development formed by Michael E. Porter of Harvard Business School in 1979. It draws upon Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market.

The five forces are:1. The threat of the entry of new competitors:Profitable markets that yield high returns will attract new firms. This result in many new entrants, which eventually will decrease profitability for all firms in the industry for cactus car wash there exists a threat of new entry as the car wash industry is growing rapidly and there are many changes that new competitors shall come into existence.

2. The intensity of competitive rivalry:For Cactus car wash car wash the fiercest competitive force is exerted by the competing sellers exactly as predicted by Strategic marketing text books. In our case PSO car wash services and Toyota are the biggest competitors that may give us a tough time. We all are engaged in attempting to have a better market position, increased sales and market share. Further more the car wash industry is growing and in such cases the rivalry intensifies to defend against competitors offensive moves.

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3. The threat of substitute services:The threat of substitute products for Cactus car wash car wash would be the manual way of car washing. There is no alarming situation but these are located favorably and price less than ours. Another factor that increases the competition that stems from the sellers substitute product is that buyer views these products as being superior in terms of quality and cleanliness.

4. The bargaining power of customers (buyers):The leverage maintained by customers in the car wash industry is strong. The buyer demand for car wash is unending as the number of cars is dramatically increasing and the sellers are scrambling to secure additional sales of their products by lowering their prices. It is not worthy that buyers are welled informed about the products that deal in cars and conscious about their prices and as strategic marketing guides us that when one is dealing with informative buyers their bargaining power over sellers increases. Therefore the buyers pose a credible threat of withdrawing their demands from our industry. The competitive force exerted by buyers is considerable in our industry. 5. The bargaining power of suppliers:In our car wash industry the bargaining power created by suppliers is minimul.The suppliers provide car wash establishments with items such as water, soaping material etc there are many large suppliers that are in this business therefore no single supplier can exert much pressure on sellers. Furthermore the supplies in need are not in short supply which reduces the leverage held by suppliers over sellers. The car wash industry members are miner customers of suppliers and therefore cannot be held at ransom by the suppliers hence the supplier power over Cactus car wash is weak.

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CHAPTER 11
VALUE CHAIN ANALYSIS

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Value chain:A value chain is a chain of activities for a firm operating in a specific industry. The business unit is the appropriate level for construction of a value chain, not the divisional level or corporate level. Products pass through all activities of the chain in order, and at each activity the product gains some value. The chain of activities gives the products more added value than the sum of the independent activity's value. The value chain includes two broad categories of activities: Primary Activates Support Activities

Primary Activities: Supply Chain Management Our cost includes the purchasing of fuel for delivery purposes and another major cost is those related to the energy sector. The car washing equipment ix imported from Germany and France. Operations Our activities include dusting the exterior to the vacuuming the internal car seats. Large scale automobiles from trucks to small cars are included in our operations..

Support Activities: Product R&D And Technology:We place a lot of emphasis on product innovation as we follow the highly differentiated product strategy. We have acquired a joint alliance with Jim Coldman company which deals in the equipment, washing ,dusting, foaming and dry cleaning in car washing industry.

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 Systems Development:We have deployed oracle databases that monitor our day to day sales, activities, returns, complaints, bills etc.

Human Resource Management And General Administration:Our recruitment process includes initial interviews, telephonic interviews, written tests, panel interviews as according to their Job descriptions. Though we do not our labor to be unionized or permit them to strike we follow a very stick ethical code of conduct.Discrimnation, horsemint and abuse are strongly prohibited. Our working conditions are genuinely safe and all our activities are reviewed, legalized and approved by the appropriate regulatory authorities.

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BLUE OCEAN STRATEGY

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Red Ocean And Blue Ocean Strategy:-

Red Oceans are all the industries in existence todaythe known market space. In the red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Here companies try to outperform their rivals to grab a greater share of product or service demand. As the market space gets crowded, prospects for profits and growth are reduced. Products become commodities or niche, and cutthroat competition turns the ocean bloody. Hence, the term red oceans.

Blue oceans, in contrast, denote all the industries not in existence todaythe unknown market space, untainted by competition. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. Blue ocean is an analogy to describe the wider, deeper potential of market space that is not yet

The corner-stone of Blue Ocean Strategy is 'Value Innovation'. A blue ocean is created when a company achieves value innovation that creates value simultaneously for both the buyer and the company. The innovation (in product, service, or delivery) must raise and create value for the market, while simultaneously reducing or eliminating features or services that are less valued by the current or future market.

Cactus car wash falls under the category of blue ocean strategy in Pakistan. As in Pakistan there is no such competitive market for the car wash industry other then PSO and Toyota car wash there are no other companies worthy of the name servicing in automatic car wash. From trucks to small cars we are appealing to all segments of car owing society. Our low cost gives an opportunity to various economic classes to get their car was efficiently and quickly.

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