Read the Midas case study in Chapter 2 of your text and respond to the guided response below in a three- to four-page paper in accordance with APA guidelines as outlined in the Ashford Writing Center. In this paper you must:
Your paper should be in paragraph form (avoid the use of bullet points) and supported with the concepts outlined in your text and additional scholarly sources.
Submit your three- to four-page paper (not including the title and reference pages). Your paper must be formatted according to APA style and must cite at least three scholarly sources in addition to the textbook.
Real World Scenarios: Midas and Genoa Ford Same Service but Not Competitors
A typical Midas shop and the service center at a dealership such as Genoa Ford provide the same service but are they really competitors? Each has adopted different strategies and tailored their operations to fit those strategies.
Midas is in the automotive repair business. Its strategy is to provide a narrow range of services at low cost. National advertising is used to develop wide geographical coverage. The company is not a full service repair shop but concentrates on muffler repair brakes and shock absorbers. It is successful because it quickly delivers quality services at low cost. How are operations important to Midas?
As part of a Ford dealership Genoa Ford’s Service Center provides a full line of automotive repairs. In contrast to Midas this service operation competes without advertising or national appeal. It also has a different operating strategy. In order to maintain the dealership Genoa Ford must be able to satisfy a wide variety of customer needs. It offers transmission work body work engine repairs and other tasks in addition to working on brakes shocks and mufflers as Midas does. Genoa Ford designs its operations to match its objectives.
As a result of its strategy Genoa Ford has higher costs and charges higher prices than Midas does for comparable work. When a car needs routine exhaust system work it can be taken to a national chain such as Midas. Generalists such as Genoa Ford can complete more difficult jobs and repair work that is paid for by Ford as part of its new car warrantee program.