SUNConferences, Computers and Industrial Engineering 42

Font Size: 
Development and Analysis of Business Models in the South African Motor Body Repair Sector
Goodwell Muyengwa, Partson Dube, Kimberly Battle

Last modified: 2012-06-20


Every enterprise makes use of a business model either explicitly or implicitly. A business model is an abstract of a business plan and is complimentary to the firm’s business strategy. It shows linkages within a business process as it transforms inputs into outputs, and how the enterprise creates and delivers value to its customers. A generic business model for the South African auto-body repair shops was developed. An actitivity system including a programme logic approach was used to describe the business model architecture. The model is presented as a series of boxes and arrows were boxes represent activities and arrows the causal links between the boxes. From literarture the design parameters used to describe the architecture were content, structure, governance and complimentaries. A comparison of two different types of business models followed in this sector was done. One is for auto-body repair shops that are recognised by the South African Insurance Association, the panel system, and the other is not. These business models were used to explain low margins experienced in this sector. The business model helps small enterprise entrepreneurs, stakeholders in the automotive sector and policy makers to understand the logic of auto-body repair shops.


Full Text: PDF