| Summary: | 碩士 === 國立中央大學 === 高階主管企管碩士班 === 101 === Taiwan’s gas stations were originally monopolized by state-owned Chinese Petroleum Corp. (CPC). During the 1980s when strong economic development drove reform and opening-up, gas stations were privatized in the petrochemical industry in 1987 and prosperity ensued. Following liberalization policies on refineries in 1995 and petroleum product import in 2001, the domestic output of gas and diesel dramatically increase. Yet given the island’s limited demand for gas and diesel, the establishment of new brands, and rising output, competition becomes fierce for refineries and gas stations in upstream and downstream supply chain. Some gas stations begin providing customers with gifts while others offer discounts. The free car wash service, which has become popular in Taiwan since 2003, has only increased not only operating costs, but waste of resources since customers may not appreciate the service.
This study investigates how the case company differentiates itself by enhancing service quality, introducing new car washing equipment, and launching diverse services as others offer free car wash service in the competitive red sea market. As the case company develops blue ocean strategies of car wash service successfully, the vicious competition is ended and service quality is enhanced. The company’s business model for improving customer satisfaction has indeed built a new paradigm for the gas station car wash service.
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