The Feasibility Study of “EURO GARAGE” Car Service in Muang District, KhonKaen Province

Abstract

The objective of this research is to examine the feasibility of the investment in “EURO GARAGE” car services in the area of Muang district, KhonKaen province. All four types of feasibility (i.e., market feasibility, management feasibility, technical feasibility, and financial feasibility) were examined. The research methodology of market feasibility was adopted in this study. To collect the data, a questionnaire was administered with the sample group of 257 persons who used European cars in order to examine their interest in using “EURO GARAGE” car services. In addition, an environmental analysis of industry and an analysis of environmental factors affecting supply and demand were conducted. The results showed
that 199 persons (72.4%) were interested in using the “EURO GARAGE” car services. The industrial analysis revealed that a factor that was likely to
have a significant impact on the business in the future was a threat caused by electric vehicles, but at a low level. Therefore, it can be concluded that
the investment in this business has market feasibility. In regards to feasible management, there should be clear method statements of a working scheme and duties of each position for rapid services. Working cooperatively with the business owner, the technician team would be able to provide accurate analyses of vehicle problems. Thus, there was a possibility in management
feasibility. For technical feasibility, this business can be valuable and different from other similar services in three aspects: 1) provision of a variety of spare parts with various prices, 2) successful repairs and punctual delivery, and 3) diagnostic equipment for each brand of European cars ready for servicing. Thus, there was a possibility in technical feasibility. In regards to financial feasibility, this business started with the initial investment cost of 4,000,000 baht. The current net value of the project was 8,245,379.71 baht. The internal rate of return was 95% with a payback period of 1 year and 33 days. Therefore, the financial feasibility was also possible. In conclusion, the results from the feasible analysis showed that there was a possible for the investment in the “EURO GARAGE” car services in Muang district, Khon Kaen province.