This research paper provides the S.W.O.T. Analysis of MAACO Auto Body Shop. MAACO Auto Body Shop was founded in the year 1972 by Anthony Martino and is currently headquartered in King of Prussia, Pennsylvania. Since its establishment, the company boasts having repaired a staggering 16.5 million vehicles requiring auto body repair and auto paint…
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Experts in franchising have recognized MAACO for its overall excellence, growth potential and helpful support systems for store operators” (MAACCO: About MACCO, par. 2). The positive image of the company contributes to the increase in outlets and clientele since its inception.
Gaebler Ventures aptly describes MAACO as
a winning retail operation with extraordinary brand recognition, no national competition, and about a 47% U.S. market share. Maaco is more than a franchise opportunity. It is a proven system that provides continuous support and training to position you to grow a prosperous business. With Maaco, you receive expert assistance, so you never feel alone” (Gaebler, par. 1). The
competitive advantage of the company is manifested through leadership in the automotive repair industry.
According to IBIS World, the nature of the work for auto body shops in the US encompasses repairing
the interior and the body of passenger cars, trucks, vans and trailers.
These firms also carry out customization work on the interior and body of vehicles. Some firms specialize in certain auto repairs; for example, paint shops specialize in post-collision paint jobs, while automotive glass shops replace, repair and tint windows. Restoration shops, which typically represent a niche market, are involved in restoring classic and antique cars” (IBIS, par. 10).
In this regard, this essay aims to proffer a SWOT analysis of MAACO, by reviewing the
company’s strengths, weaknesses, opportunities, and threats (SWOT), to explore its competitive advantage in their field of operations....
Strengths MAACO was recently ranked by AllStar Franchise as an organization worthy to be included in its AllStar list due to its strengths in terms of longevity which is likewise tantamount to years of experience in their business. As revealed by All Business, “the company has ranked high in financial strength for two consecutive years, and this year its Web visibility improved significantly (from #202 to #106). Maaco offers a conversion program to turn independent auto body shops into Maaco franchises, which is appealing to many independents in a tough economy. Parent company Driven Brands, which owns several automotive-related franchise companies, also has a Dealership Jump Start program that converts car dealerships to Maaco centers” (All Business, pars. 2 & 3). From its 149 AllStar ranking in 2010, the rank improved to 84 in 2011 proving that MAACO continues to utilize its internal resources effectively and efficiently. It boasts of according customers a price for repairs which is 33% less than those quoted and charged by other repair shops (MAACO: Home, par. 1). As revealed by White, “in 2011, MAACO was ranked #1 in class by Entrepreneur Magazine” (par. 4). The unique franchising strategy entices investors to open new shops due to the financial prospects and the number of clientele who continue to patronize MAACO auto body shops. Further, Gross revealed that various customers in Canada expressed their content and satisfaction from the services provided by MAACO. Gross averred that “Maaco is the collision shop that paints cars. We do it all, and just as importantly, give you much more Value than anyone else can. By bringing your car to Maaco, North America's Bodyshop, you benefit from our encounter, buying power,
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