Five Forces Model:
The Threat of new entrants as per Porter's Five Forces Analysis for the PTO – Public Transport operator in Singapore is considered low generally, since licenses of Rail has been continuously running for up to 30 years and for buses for 10 years, meaning there is almost no risks nor possibility of new entrants. Another reason would be the lack of chance for a new player of building up proficiency to convince the Regulator of the capability to run the transportation services.
As for Dubai Transport System there is also no room for another operations to run any other transport network nor to bid for the license to compete with RTA. However, In the future the situation for the public Transportation service in Singapore is forecasted to change, if it agrees in moving to the agreements model. It would turn to open up competition for the operating license as quite feasibly to make the tenders available for packets of routes rather than to the entire network, by this means they will be
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The only way to avoid public transport is either to walk, ride a bicycle or own a car. Although the bargaining power of customers is low and there is low customer concentration, but we highlight that PTOs do not have the ability to set prices either, as Fares are controlled by the Regulator. Consensus from speaking with Management from the PTOs is that if Fares are not kept affordable by the Regulator, the incumbent Government may risk facing political repercussions at the ballot-box. To summarise, customers of Fare based transport do not have the ability to directly influence prices on the PTOs, but indirectly through the Regulator. Customers also have little bargaining power over taxi fares. When fares do increase, customers can change their spending pattern, but they have exhibited the tendency to eventually accept the new normal, and revert to their prior spending
Everyday people in Toronto travel to places using public transportation. Without public transportation, we wouldn’t be able to go to places that are far away from us. We needed them in our everyday life but there are key problems that surfaces when using public transportation. Public transportation may seem convenient but for others it may not seem ideal for them from certain circumstances such as the cost, lack of transportation in a certain area and the delays. These make people not want to ride a public transportation which is why Toronto should improve on the public transportation to make the best interest for the people.
a) Economies of scale—the top three carriers (Federal Express, UPS, and Airborne Express) serve slightly more than 85% of the domestic express mail market. All three carriers deliver a high volume of packages, and thus, are able to spread fixed costs over more units. Also, each carrier has integrated technological systems that improved operational efficiency. In addition, intensive training programs of employees increase service and delivery efficiency.
Transportation in the region has a long and successful past. However, public transportation has consistently taken a back seat to the personal automobile. There has been a strong core of persons who rely on public transportation to achieve mobility, and governmental
Competitors in the public buses industry includes GoAhead, Tower Transit and SMRT, all of which operates under the Bus Contracting Model whereby the Land Transport Authority (LTA) determines the bus routes that these buses operate, pays them a fixed fee to do so and retains the fare revenue. As such, SBS Transit will receive a smaller portion of the total fees given that they will be running lesser bus routes as compared to before due to the increased competition. They also ought to continue offering exceptional services to their passengers to stay ahead of the competition and prove to the LTA that they are able to take on more bus routes in
The first of Porter’s Five Forces is the threat of new entrants. According to the case study, there has been a wave of new entrants to the retail industry. These include Best Buy, Costco, Wal-Mart, Old Navy and the recently irrelevant, Target Canada. The second force, the threat of substitute products or services, is also prevalent in the retail market. Inevitably, the target audience that the Hudson’s Bay Company is trying to cater to, will shop at other retail stores for the same goods due to consumers behaviours and preferences. Another impacting force is the bargaining power of suppliers. However, this force does not play as large of an impact to HBC as one might initially assume. Traditionally, HBC among other large retail stores makes a large percentage of their
Barriers will be placed on all new supermarkets entering the sector; this will be from the existing supermarkets. For example Tesco may have cornered the market for certain goods therefore has established a relationship with its supplier so that it will pay a lot less for large volumes of goods whereas the new supermarket will not be able to find cheap, reliable suppliers this gives Tesco's the advantage of economics of scale. A new, small supermarket chain can only buy a relatively small volume of goods, at a higher
There are two main culprits of the public transport industry responsible for this mess. These are namely the bus and rail companies who despite, receiving large government subsidies, simply can't rectify their problems.
90) Since 2004 the demand for gasoline has been constant and the price of gasoline has continued to rise, causing gasoline expenditures to rise astronomically. However, given that an acceptable substitute for gasoline does not exist, consumers are unable to cutback on the amount of gasoline being consumed. The article suggests that some reasons for consumers’ inability or unwillingness to cutback on the consumption of gasoline are long commutes, the use of vehicles which are not fuel efficient and a lack of alternative solutions such as carpooling and public transit options. The law of supply also suggests that if a firm cuts back on the amount of a good being supplied, the cost of cutting back outweighs the cost of continuing the supply.
The buyers for mining industry usually have medium to high power. There are two elements that could affect the buyer’s power. One is buyer’s level of negotiation; the other is buyer’s price sensitivity. In our case, the two companies are producing coal and uranium. These two products are mainly used for producing electricity. Buyers for these natural resources must have large quantity of demand, and also they usually have government behind them for negotiation. Even through these natural resources are unrenewable and limited, there are other mining companies producing them and these resources are undifferentiated from other companies products. This makes the buyers have high
Particularly when new entrants are diversifying from other markets, they can leverage existing capabilities and cash flows to shake up competition like Apple did when it entered the music distribution business. The threat of new entry therefore, puts a cap on the profit potential of an industry. The threat to Air Asia is relatively less as the capital required to enter the industry is quite high. However, potential new entrants from full service carriers with a surplus capital could be threats in the future and long-term.
Fast Trains are now providing competition for airlines in China on key routes (Finighan, 2011).
This paper addresses the use of Porter’s Five Forces model and how it can benefit Broadway Cafe by identifying and analyzing the effect of these forces on its business. The benefits include improved decision making, faster time to market, better productivity, improved competitive advantage, more profits and greater customer satisfaction. It also helps in achieving operational excellence.
Porter 's Five Forces model (PFF) is a powerful instrument that can be utilized by companies to investigate its situation and identify its industry 's competitors. Analyzing industry will help any business in determining the competitive strength and weaknesses. By using PFF model, investors can gain valuable information regarding what the actual factors that affect the organization 's profitability (Evans & Neu 2008). This paper will analyze the Cola Wars case study based on the PFF model, and the primary components of soft drink industry. At the end of this paper, some recommendations will be given to Coca-Cola company to enhance its position in the market.
The threat of new entrants is low. The short haul market is highly competitive as it needs high capital investment, special licenses and flight authorisation. Then the restriction or lack of slot availability makes it even more difficult for new entrants, to assess many airports. Any new entrant should have a differentiation strategy to enter and stay competitive in the market.
Port competition in China and Hongkong prevents the aspect of monopoly among the providers of services. At the port transport industry, there exist economic rents which a paid by all transport providers and customers. The economic rents are provided by seaport and airports in China. In case of limited competition the economic rent becomes substantial. The ports which provide the same product and service compete with each other, and they provide better services since monopoly is not practiced (Chlomoundis 2002).