This work is divided into different parts. The first part shows the theoretical background and introduces the concept of Porter’s five forces. Therefore the section starts with the objective and field of application of the model followed by the description of the five individual forces. In the section of the business case the concept is applied to the German long distance bus market in order to get a comprehensive picture of the industry situation, risks and opportunities. The last section will complete the entire work by doing a summary, limiting the research and will giving recommendation for further research.
Table of Contents
1 Introduction
1.1 Problem definition
1.2 Objective
1.3 Structure and methodology
2 Market analysis by Porter’s five forces
2.1 Objective and field of application
2.2 Description
2.2.1 Threat of new entrants
2.2.2 Level of rivalry among existing competitors
2.2.3 Threat of substitutes
2.2.4 Bargaining power of suppliers
2.2.5 Bargaining power of customers
3 Business case: German long distance bus market
3.1 Procedure
3.2 Results
3.2.1 Threat of new entrants
3.2.2 Level of rivalry among existing competitors
3.2.3 Threat of Substitutes
3.2.4 Bargaining power of suppliers
3.2.5 Bargaining power of customers
4 Conclusion
4.1 Summary
4.2 Further Research
4.3 Limitation of the research
Objectives and Core Topics
The primary objective of this work is to analyze the German long-distance bus market using Michael Porter’s Five Forces model to determine the industry's drivers and assess its competitive dynamics in light of recent market liberalization.
- Theoretical application of Porter’s Five Forces model to the transport sector.
- Evaluation of market attractiveness for the German long-distance bus industry.
- Assessment of competitive rivalry and threat of new market entrants.
- Analysis of the bargaining power of suppliers and customers within the current regulatory environment.
- Strategic context regarding the impact on established players like Deutsche Bahn.
Excerpt from the Book
3.2.2 Level of rivalry among existing competitors
The more players there are, the more intense the competition for the same customers. Since the liberalization of the long distance bus market the number of competitors is constantly increasing. Especially foreign companies and Startups are entering the market. Because of the growing number of providers in the next a consolidation is unavoidable. Currently around 60 companies are operating in the market. The growing number and the lack of differentiation lead to price competition. Therefore hardly a company is profitable. Nevertheless thru the high growth rate of the industry it is quite easy to gain market share because it is easier to gain market share in fast growing than in slow growing markets. By considering all the driver related to this factor the impact on the market attractiveness is neutral with a tendency to moderate attractive.
Summary of Chapters
1 Introduction: Provides an overview of the German long-distance bus market liberalization and defines the problem regarding competitive pressure on incumbent rail operators.
2 Market analysis by Porter’s five forces: Introduces the theoretical framework of Porter’s model and details the five specific competitive forces used for industry evaluation.
3 Business case: German long distance bus market: Applies the five-forces methodology to the specific context of the German bus industry to determine current market risks and opportunities.
4 Conclusion: Summarizes the key findings of the market analysis and offers perspectives on further research and limitations of the study.
Keywords
Porter’s Five Forces, German long-distance bus market, Market liberalization, Competitive rivalry, Threat of new entrants, Bargaining power, Strategy formulation, Transport sector, Industry analysis, Market attractiveness, Deutsche Bahn, Market consolidation, Price competition.
Frequently Asked Questions
What is the core focus of this publication?
The work focuses on analyzing the competitive structure and market dynamics of the recently liberalized German long-distance bus industry.
What are the central themes of the research?
The central themes include the application of Porter's Five Forces, the impact of market entry on established transport providers, and the assessment of profitability factors in the bus industry.
What is the primary objective of this paper?
The objective is to determine the forces driving the German long-distance bus market and to provide a comprehensive picture of the industry's situation, risks, and opportunities.
Which scientific methodology is employed?
The paper utilizes Michael Porter’s Five Forces model, supported by secondary data analysis of industry reports and market statistics.
What topics are covered in the main body?
The main body covers the theoretical description of Porter's forces, the specific application to the German bus case, and a detailed evaluation of each of the five forces.
Which keywords best characterize this work?
Key terms include Porter's Five Forces, long-distance bus market, competitive strategy, market liberalization, and industry attractiveness.
Why is the threat of new entrants considered high in this market?
The threat is high due to relatively low initial capital requirements, the ability to utilize existing distribution channels, and the lack of strong brand loyalty among customers.
How does the author view the bargaining power of customers?
The author identifies customer bargaining power as medium, noting that while customers have many choices and low switching costs, they do not act as a concentrated bulk that could exert excessive pressure.
- Quote paper
- Master of Business Administration (MBA) Martin Pruschkowski (Author), 2015, Analysis of the German Long Distance Bus Market by Porter´s Five Forces, Munich, GRIN Verlag, https://www.grin.com/document/432962
