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

The diligence and Competition of the Bus IndustrySeveral large companies aim focused on the multi-occupant vehicle merchandise, specifically school tutor production, in North America. Competitors within the school mickle manufacturing industry consist of the Henlys crowd PLC, a British based company, and two U.S. bus companies, Collins Industries Inc. and Navistar transnational. Henlys consists of blueing snort Corporation, Prevost Car Inc., Nova Bus and TransBus International Ltd. Collins Industries operates seven vehicle companies including Collins Bus Corporation and mid(prenominal) Bus Corporation that make up their school bus line. And finally, Navistar International, which similarly produces school buses, is divided into tercet principal industry segments. These segments atomic number 18 trucks/buses, engines, and pecuniary services. In October 1999, Henlys acquired dour Bird Corporation. This horizontal acquisition gave Henlys a agonistical advantage in the North American school bus market. Currently, Blue Bird has increased its market share to over 47% fashioning the bus market Henlys core business. Blue Bird, financially, accounts for 59% of total integrated gross 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 meet customer needs. They have in any case teamed up with the Southwest Research Institute to develop the bus of the future, Envirobus. The joint venture was commissioned by the Department of Energy 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 Bl ue 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 trammel to expand its bus and jalopy operations outside of its borders. With this one acquisition, the Henlys Group has achieved economy of scale and now 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 provision 80% of that market.