The Industry and Competition of the Bus Industry :: Buses Transportation Automobiles Essays

The Industry and Competition of the tidy sum IndustrySeveral large companies have foc utilize on the multi-occupant fomite merchandise, specifically school charabanc production, in North America. Competitors within the school bus manufacturing industry consist of the Henlys Group PLC, a British based company, and ii U.S. bus companies, Collins Industries Inc. and Navistar International. Henlys consists of unsanctified shucks Corporation, Prevost Car Inc., Nova Bus and TransBus International Ltd. Collins Industries operates seven vehicle companies including Collins Bus Corporation and Mid Bus Corporation that make up their school bus line. And finally, Navistar International, which also produces school buses, is divided into three principal industry segments. These segments are trucks/buses, engines, and financial services. In October 1999, Henlys acquired voluptuous Bird Corporation. This horizontal acquisition gave Henlys a competitive advantage in the North American school bus market. Currently, Blue Bird has increased its market share to over 47% making the bus market Henlys core business. Blue Bird, financially, accounts for 59% of total corporate sales and 81% of Henlys profits. Within Blue Bird, school bus sales accounted for 83% of total sales. Blue Bird offers three styles of small buses and three different large buses, all designed to jibe customer needs. They have also teamed up with the Southwest Research Institute to develop the bus of the future, Envirobus. The marijuana cigarette venture was commissioned by the Department of brawn in response to increased pressure from various environmentalist groups to develop buses that are safer and environmentally conscious. This acquisition makes Henlys the largest company in sales of school buses in the North American Market. Besides school buses, Blue Bird also produces commercial buses and recreational vehicles. Henlys is also able to take advantage of Blue Birds extensive network of distributors. These areas complement Henlys other areas of operations by building on their core competencies. Prior to the Blue Bird acquisition, Henlys Group used the cooperative strategy of equity strategic alliance to expand its bus and coach operations outside of its borders. With this one acquisition, the Henlys Group has achieved economy of scale and at a time controls 47% of the school bus market in North America.Henlys equity alliance partner profile includes a partnership with Volvo that jointly owns Prevost car Inc. and Nova bus. This joint venture accounts for a 25% market share in North Americas coach market and is the market leader in bus shells for motor homes supplying 80% of that market.