Development and analysis of business models in the South African motor body repair sector

Abstract

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. Through a case study research two business models used by South African auto-body repairers were developed and analysed. One is for auto-body repair shops that are recognised by the South African Insurance Association, the panel system, and the other is not. The business models are presented as causal loop diagrams. Design parameters used to describe the architecture were content, structure, governance and complimentaries. 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