Practical Plan Activity For JUNE
Commerce Practical File: Business
Model
AutoElite Showroom
Introduction of the Business Idea:
Brief description of the business:
AutoElite is a premium car showroom that offers a variety of vehicles
under one roof. The showroom specializes in four main segments:
brand-new cars, restored vintage cars, certified second-hand cars, and
free test drive services. AutoElite caters to a broad audience by
combining modernity with nostalgia and affordability.
Product or service offered:
Brand New Cars
Restored Vintage Cars
Certified Second-hand Cars
Free Test Drive Facility
Target market:
Families and professionals seeking reliable vehicles
Car collectors and vintage enthusiasts
First-time buyers looking for affordable second-hand options
Individuals who want to experience vehicles before purchasing
Unique Selling Proposition (USP):
AutoElite stands out by offering all car types in one location with a
focus on transparency, trust, and customer experience. The availability
of restored vintage vehicles alongside modern models makes it unique.
Free test drives ensure customer confidence and satisfaction.
Budget and Economic Planning:
Startup Budget Table:
Item Cost (AED)
Showroom Rent &
60,000
Setup
Vehicle Procurement 300,000
Staff Salaries (3
45,000
months)
Marketing &
10,000
Advertising
Licensing & Insurance 15,000
Miscellaneous 10,000
Total 440,000
Revenue Estimation:
New Cars: 5 units x AED 60,000 = AED 300,000
Used Cars: 8 units x AED 25,000 = AED 200,000
Vintage Cars: 2 units x AED 40,000 = AED 80,000
Estimated Monthly Revenue: AED 580,000
Break-even Analysis:
AutoElite expects to recover its initial investment within the first 3 to 4
months based on consistent monthly sales.
Explanation of fixed and variable costs:
Fixed Costs: Rent, staff salaries, insurance
Variable Costs: Vehicle procurement, marketing, fuel for test
drives
Application of economic concepts:
Concept Application
Demand High demand for affordable used cars
Opportunity Choosing between new and second-hand
Cost cars
Marginal Free test drive adds extra value to the
Benefit purchase decision
Sourcing reliable cars for consistent stock
Supply
availability
Business Model Canvas:
Customer Segments & Channels:
AutoElite targets families, collectors, and individuals looking for value-
based or passion-based car ownership. Customers are reached through
the showroom, local advertising, and online listings.
Value Proposition:
AutoElite provides access to different car categories in one place,
ensuring quality, affordability, and reliability. The added value of
restored vintage cars and free test drives enhances customer trust and
experience.
Key Partners & Key Activities:
Key Partners Key Activities
Car Manufacturers Vehicle procurement
Restoration
Vintage car rebuilding
Specialists
Finance
Loan and EMI support
Companies
Marketing Promotions and customer
Agencies outreach
Revenue Streams & Cost Structure:
Revenue Streams Cost Structure
Sale of new, used, Rent, salaries, marketing,
vintage cars vehicle costs
Financing Commission Maintenance, fuel, advertising
Economic Justification:
Why the idea is feasible in the current market:
There is a consistent demand for used and vintage cars
due to rising new car prices. AutoElite leverages this
trend while still offering new car options, ensuring a
broad market reach.
How demand and supply will affect pricing and
profitability:
Limited vintage cars allow for premium pricing, while
used cars offer flexibility. Supply partnerships ensure
consistent vehicle availability and stable costs.
External economic factors impacting the business:
Inflation and price rise in new vehicles
Popularity of vintage car culture
Increasing consumer preference for test drives before purchase
SWOT Analysis:
Strengths Weaknesses
Four car segments under one
High initial investment
roof
Free test drive increases
Limited vintage car inventory
buyer trust
Reliable sourcing and vehicle
Restoration may require skilled labor
certification
Opportunities Threats
Competition from online
Expansion into online vehicle sales
platforms
Partnership with luxury brands or Economic downturn
collectors affecting demand
Fluctuating fuel and
Customization and finance tie-ups
maintenance costs
Future Plan:
Launch a digital showroom and online booking system
Partner with more vintage car restoration experts
Introduce a customer loyalty program with rewards
Expand to new locations in major cities
Start a membership-based Vintage Car Club
Conclusion:
AutoElite brings together modern and classic car
buying experiences into one accessible and
customer-focused showroom. Its four-segment
model ensures it appeals to a wide audience
while maintaining clear value through test drives
and quality assurance. Future expansion could
include online car booking, loyalty services, and
a vintage car club to attract passionate buyers.
DONE BY
Omar Imran
Haris Ansari
Syed Saihaan
Abdulla Ahmed
M. Shazad
12-N
