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  • Essay / Competitive Analysis - Car Wash Industry - 2496

    IntroductionThe task of this assignment is to conduct a competitive analysis of two of the largest competitors in the chosen industry of study. This researcher's favorite field is the car wash industry. Unlike many industries, the car wash industry does not have dominant players or franchise names that rule across the country. Unlike other automotive related industries such as oil change (Rapid Oil Change), tires and batteries (Goodyear), and auto parts retailers (NAPA), where these types of renowned players can having thousands of locations across the country, there's no big name. players in the car wash sector. Although there are companies that own and operate multiple car wash facilities, most of these multi-location owners operate multiple locations within a metropolitan or regional area and the total of their locations is nominal. Since there is a lack of dominant competitors to analyze, this researcher will focus on an analysis between the two main categories of car wash owners: full service and unattended operations. Industry Overview and Description The car wash industry began to take off and grow in the United States. after the end of the Second World War. America's economic renaissance and prosperity created a boom in the real estate and automobile industries. What began as a business to satisfy America's love of automobiles has grown into an international industry in recent decades. From washing your car in the driveway with a garden hose and bucket of soapy water, to unattended, do-it-yourself coin-operated high-pressure lance locations, to car wash companies today's professionals who have automatic equipment and complex technological systems for washing. cars are safer and more efficient than...... middle of paper ...... ionic wash bays represent a huge competitive risk because these gasoline retailers typically offer discounted car washes with purchasing gasoline. For full-service laundry in this model, they too must adapt to cheaper, fewer-service options, because in tough economies their services become harder to justify to the income-conscious consumer. Competitive rivalry, the threat of substitution, and the threat of new entrants are the forces with which the full-service model is most at risk. The service's poor reputation and lack of a strong value proposition puts this car wash model at serious risk of substitution. The benefit of new entry for both business models can be significant, as there are many new innovations in the car wash business, such as mobile car washes and new and used car dealerships, who add this activity to what has been a very difficult auto economy..