Nobody downloaded yet

UK Buss Market - The Competitive Environment - Essay Example

Comments (0) Cite this document
This paper will analyse the markets conditions and the behaviour of the firms in the UK bus market. It also explains the reasoning behind the action of the regulators in the market. The market is an oligopoly with 5 major firms controlling the market. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98% of users find it useful
UK Buss Market - The Competitive Environment
Read TextPreview

Extract of sample "UK Buss Market - The Competitive Environment"

Download file to see previous pages Competition plays a very important role in the growth of a market and economy. Increasing competition is the most effective way of enhancing the welfare of the consumers. Competition breeds entrepreneurship, creativity, innovation and increases the efficiencies of the firms. It also results in low prices along with better services and products for the consumers. But perfect competition is very difficult to achieve as firms in a market continuously try to beat the competition and increase barriers to entry. Firms at time even come up with strategies and partner with rivals to keep new firms from entering the market.
UK Bus Market – Background
It has been 25 years since the UK Bus market was deregulated but still only a handful of firms account for the majority of the market. The competition in the market has stagnated and the existing big firms know that they have very little to worry with respect to new firms entering the market or existing firms challenging their market dominance. As a result of this there is no drive among the firms to innovate or improve the services. Pricing is also on the higher end negatively affecting the consumers. Also it has been found that the existing firms have avoided competing with each other with the intention to protect their territories. Firms have used short-term measures to ensure rival markets quit the market (BBC, 2011).
There are around 1,245 bus companies in UK but 70% the market is accounted by Stagecoach, Go-Ahead, FirstGroup, Arriva and National Express. Competition Commission has proposed numerous measures to increase the competition in the market (BBC, 2011)....
duct-Performance (S-C-P) model is an effective tool developed by economists to understand the relationship between relationship between the market performance, conduct and structure (Faulkner & Campbell, 2006). Even though the casual view is that the structure of a market determines conduct of the firms in the market and in turn the performance of the both the firms and the markets it is not always reliable. It is possible that conduct of firms in a market can affect the market structure, for example collusive prising agreements affects the structure of the market. It is also true that the performance of firms can affect the structure of the market, for example best performing firms in a non-homogenous market exert great market domination. Therefore, in the current context, the structure, conduct and performance will be analysed individually and then summarised collectively in the next section. Structure of UK Bus Market The most important characteristic of market structure is the number of firms in the market. Even though there are around 1,245 firms in the market, the market is dominated by five firms whose collective market share is about 70% (BBC, 2011). The UK bus market is an oligopoly as it is controlled by a 5 major firms (Banister, 2002). The five-firm concentration ratio of the UK bus market is 66.7 Entry costs into the market are high as it demands huge capital investments to set up the service and have it running. Also the sunk costs of the market are high which has made it less contestable. The service offered here is non-homogenous and the firms have the opportunity to differentiate themselves from the competitors through different marketing and branding strategies. Economies of scale is absent in the market. The Bus market is greatly vertically ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“UK Buss Market - The Competitive Environment Essay”, n.d.)
UK Buss Market - The Competitive Environment Essay. Retrieved from
(UK Buss Market - The Competitive Environment Essay)
UK Buss Market - The Competitive Environment Essay.
“UK Buss Market - The Competitive Environment Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF UK Buss Market - The Competitive Environment

Market Audit and Competitive Market Analysis

...?REVISED WITHOUT IN-TEXT AS REQUESTED Section C: Market Audit and Competitive Market Analysis I. The product Relative advantage In international marketing and especially in market audit and competitive market analysis, the need to weigh the relative advantage of a company’s product to a new market is very important as the marketing audit is a fundamental part of the marketing planning process. This means that the relative advantage of the product must be factored into the planning process. With specific reference to kikk.k, her targeted products are writing utensils (pens...
5 Pages(1250 words)Assignment

The Competitive Environment

...? THE COMPETITIVE ENVIRONMENT (Google's Monopoly) by: ID Number S-C-P Model Presented of the University School Location Estimated Word Count: 1,681 Due on: May 07, 2012 Introduction The Internet is truly a transformational technology that affects everyone on the planet today. People now do things differently, from shopping to banking to dating to socializing and it has also changed how businesses are being run and managed. The Internet came out of the World Wide Web but this term is rarely used nowadays and it has almost become arcane to younger generations of Internet users. Going back further in time, it was a United States government-funded research project some sixty years ago called the ARPANET that...
4 Pages(1000 words)Essay

Competitive Environment Questions

...? Competitive Environment questions a) Identify and describe the possible ‘barriers to entry’, faced by firms wishing to enter a new market’. In today’s world of competitive business Barriers to entry are generally factors which allow a firm in earning positive profits as a result of which the other firms present in that particular market find it unprofitable for entering into the market. As for example in an area there is an established Information Technology (IT) company which provides a huge service to the customers in that area and has earned a huge goodwill in that market. This means that the company is a dominant...
5 Pages(1250 words)Essay

Competitive Environment

...Swarnambika S Academia Research Competitive Environment July 15, 2007 Competitive Environment The competitive environment consists of the number ofcompetitors a company faces, the relative size of competitors, and the degree of interdependence within the industry. The marketing department of a company has little control over the competitive environment confronting it. In this paper, we would be discussing about the competitive environment of Toyota covering economic, marketing and external strategy elements of the...
15 Pages(3750 words)Case Study

Competitive Business Environment

... The business world is changing at a very fast pace which is forcing companies to restructure their operations and make changes to transform the company into streamlined efficient entities that have adapted to survive in the competitive business environment of the 21st century. Change has been a part of the business environment for centuries and the employees as well as the owners have always been able to adapt to the new challenges that are part of the evolving process of maintaining organization going to meet society’s goals. In the past industries such as the agriculture and manufacturing industry have been radically changed by the new world order and technological advantages. Developed countries realized that emerging nations... ...
8 Pages(2000 words)Essay

Buss law

...1 An aggrieved party can use the civil procedure to bring an action under contract or property law among other things. Under the circumstances of acontract the essential elements are offer, acceptance and intent to create legal relations. On formation of such a contract if it is found that there has been a breach of the contract, the aggrieved party can bring an action under the civil procedure. The civil procedure can also be used to bring an action under property law. Among other things, an action can be brought if it is found that on successful disposition of land, the owner refuses to transfer the property to the new owner. 2. A partnership ceases to exist or in other words is terminated where the single venture... An aggrieved party can ...
9 Pages(2250 words)Essay

Competitive Environment

...Aide Memoire for UK Domestic Gas and Electri Markets of the of the Aide Memoire SCP Model =standing of industry sector = structure, conduct and performance of the firms that comprise it at a given point. Structure determinants= Number of Competing Firms; Homogeneity of Products, Cost of Entry and Exit. Conduct= strategies firm implements to gain competitive advantage over rivals. Performance= performance of individual firm + performance of economy (Creative Advantage Website, 2012, 1). Gas industry in Britain = imperfect competition. Market dominated by few large firms and smattering of local and regional entities. Bulk of supply lines/ consumers ...
1 Pages(250 words)Essay

Buss low

... Apple versus Samsung The article, “Jury Awards Billion to Apple in Samsung Patent Case” discuss about the judicial proceeding held at San Jose, Calif federal courthouse. Apple won the case against Samsung in a case concerning patents. The court found that Samsung had infringed a series of patents on mobile devices and awarded Apple $ 1 billion as a compensation for the damages. The courts ruling did not cause Samsung a big financial blow, since it is among the largest electronics companies in the world. The decision can force Samsung and other Smartphone manufacturers to redesign their products to be less Apple like in order to avoid further legal defeats (Wingfield, p.2). The case involved Apple and Samsung in argument... Apple versus...
1 Pages(250 words)Essay


...The Cheesecake Factory: Target Market Introduction Market segmentation and choice of target market are important elements of marketing strategy. A company that segments the market and identifies target segment(s) ends up delivering superior customer value (Dibb & Simkin, 1997). What is important is that the company satisfies the needs of its target market in a better manner as compared to its competitors. The Cheesecake Factory located at 251, Macy’s building, 8th floor, Geary St, San Francisco, CA 94102 can segment the market and target multiple segments. One of the target market identified for this...
4 Pages(1000 words)Essay

Vietnam Market Competitive Pricing

...AK Underwear: Company Analysis table of contents table of contents i Executive Summary 2 1 Operations and management 3 1.1 Operations 1 1.2 management 5 1.2.1 concepts-to-market 6 1.2.2 make to order strategy 6 1.2.3 supply chain management 7 2 Product analysis 8 2.1 product recommendations 9 2.1.1 Website upgrades 9 2.1.2 product 10 3. market analysis 11 3.1 swot analysis 12 3.1.1 strengths 12 3.1.2 weaknesses 12 3.1.3 opportunities 12 3.1.4 threats 13 3.2 marketing strategy recommendations 13 3.3 vietnam market competitive pricing 15 4 strategy and implementation 17 4.1 competitive edge 17 4.2 marketing...
40 Pages(10000 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic UK Buss Market - The Competitive Environment for FREE!

Contact Us