Business Plan Harvard Case Solution & Analysis


This report demonstrates an idea for the business plan of a gas station, which will be operating the region of California and will serve as the new service provider for the area with respect to gasoline. Although there are already two existing gasoline stations in the locality that are providing similar services, however, the price they are charging is high and are not fulfilling the needs of the customers completely.

The major location of the gas station will be Hammer Lane and Highway 99 in Stockton, which indicates that the capacity of the locality is quite attractive and there are numbers of vehicles that pass through this route on a daily basis. Through researches, it has been identified that targeting this area will be best opportunity and has a reasonable population to achieve attractive financial gains (Mau, 2015).

This report analyzes the opportunity and the entire business plan framing all the necessary regulations and documentations that are essential to operate in this region. Apart from that, the EPA regulations, the regulatory constraints, the strategic analysis, the marketing plan and the financial plan will also be presented in the report.

The major goal of the report is to assess the opportunity present in the region and to highlight the basis on which a new gas station can be established or not. Besides that, as stated, that Shell and Chevron are already present in the area, but are providing expensive services, which is why the new gas station will be competitive in this regard and will provide price penetration in the region to attract customers (Sullivan, 2003).


The main focus of this new gas station will be on assessing the latent needs of the target market that are still unmet and will facilitate those customers in meeting those needs which will result in customer satisfaction. The major products of a gas station include the gasoline and the diesel that accounts for the majority of the revenue that is generated from the gas station.

However, this new station, which will be a franchise of Shell, will be operating a separate owner who has a different objective. The owner wants to provide customer satisfaction to the customers in the target market by meeting their needs and demands explicitly. However, the gas station will also assimilate the services that are rendered at a gas station (Phil Radford, 2013).

Every gas station provides inspection and repair services which will be part of this gas station as well, but the customers can avail these services without any cost until or unless there is as some major use. However, services like air filling in tires will be free as there will be free air pumps readily available at the gas station.

On the other hand, the convenience store is also there which will facilitate and serve the customers in a different manner and with different products. The reason to provide such services along with gasoline and diesel is because to give consumers an option to fuel up as well while fueling their cars, bikes, or any other vehicle.

The product offerings and the services that will be offered will be uniquely delivered at the station will have self-service and will also have a full service station. However, there will be no extra cost that will be charged from the customers for these services.

The prices will be kept competitive in order to provide the target customers full range of services at low cost and also to attract new customers. However, the customers who will be purchasing 5 gallons or less will be charged with extra prices and may suffer an increase in the price. The majority of pumps in the station will be providing gasoline; however, there will be a proportion that will serve diesel. The ration 1:3 means that for 1 pump of diesel there will be 3 pumps of gasoline (Mau, 2015).

The gas station will be operating as a franchise for Shell, which is why the color scheme of the station will be yellow and red which is the traditional color scheme of Shell. On the other hand the logo will be of Shell, which will play a vital role in attracting customers. Apart from that, the employees of the staff will be wearing jerseys of Shell, which clearly indicates that the station will be operating as a franchise of Shell..................

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