Innobus Case
Innobus case.
Buyer power
Bargaining power of buyers for Innobus is high. Public transport will be used nomatter what. Ellectricity and diesel price shift can influence the demand, however thisinfluence will not be that visible in the short time perspective. If price of diesel retainsgrowths customers will demand lower consumption of it by busses, however it will bequite hard for them to abbandon the ship easily. Customer will remain in a certaininvolvement with the supplier.
Threat of substitutes
Threat of substitutes is low. People can start using airplanes instead of busses for along distance travel, however inside city bus can not be replaced by other publictransport like taxi. Tendency of ordering and renovating old buses will be remainingin the long run.
Barriers to entry
Barriers to entry are high. Posibility to organize production methods and productionline is low. Huge investment should be done in acquiring the apropriate facilities andequipment. Huge chunk of investment and time takes a design of product itself.Therefore it is not an easy aproach to establish a competing company.
Supplier power
Suppliers can not dictate the price due to a big range of market. In 40 percent situation parts are chosen by customer. However, in my opinion, possible innovativetendencies, like “lean design” can be used in system. It will make range of suppliers bigger, that would lead to lowering bargaining power of supplier.
Degree of rivalry
Degree of rivalry is high because of the stable market competition. There are not somany producers of busses with not so big shares. Which meens that the leadingcompany on the market can still be reached by smaller competitors in the long run. Socompetition is high
Buyer power
Bargaining power of buyers for Innobus is high. Public transport will be used nomatter what. Ellectricity and diesel price shift can influence the demand, however thisinfluence will not be that visible in the short time perspective. If price of diesel retainsgrowths customers will demand lower consumption of it by busses, however it will bequite hard for them to abbandon the ship easily. Customer will remain in a certaininvolvement with the supplier.
Threat of substitutes
Threat of substitutes is low. People can start using airplanes instead of busses for along distance travel, however inside city bus can not be replaced by other publictransport like taxi. Tendency of ordering and renovating old buses will be remainingin the long run.
Barriers to entry
Barriers to entry are high. Posibility to organize production methods and productionline is low. Huge investment should be done in acquiring the apropriate facilities andequipment. Huge chunk of investment and time takes a design of product itself.Therefore it is not an easy aproach to establish a competing company.
Supplier power
Suppliers can not dictate the price due to a big range of market. In 40 percent situation parts are chosen by customer. However, in my opinion, possible innovativetendencies, like “lean design” can be used in system. It will make range of suppliers bigger, that would lead to lowering bargaining power of supplier.
Degree of rivalry
Degree of rivalry is high because of the stable market competition. There are not somany producers of busses with not so big shares. Which meens that the leadingcompany on the market can still be reached by smaller competitors in the long run. Socompetition is high