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The Industry and Competition of the Bus Industry

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The Industry and Competition of the Bus Industry

Several large companies have focused on the multi-occupant vehicle market, specifically school bus production, in North America. Competitors within the school bus manufacturing industry consist of the Henlys Group PLC, a British based company, and two U.S. bus companies, Collins Industries Inc. and Navistar International. Henlys consists of Blue Bird Corporation, Prevost Car Inc., Nova Bus and TransBus International Ltd. Collins Industries operates seven vehicle companies including Collins Bus Corporation and Mid Bus Corporation that make up their school bus line. And finally, Navistar International, which also produces school buses, is divided into three principal industry segments. These segments are trucks/buses, engines, and financial services.

In October 1999, Henlys acquired Blue Bird Corporation. This horizontal acquisition gave Henlys a competitive advantage in the North American school bus market. Currently, Blue Bird has increased its market share to over 47% making the bus market Henlys core business. Blue Bird, financially, accounts for 59% of total corporate 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 also teamed up with the Southwest Research Institute to develop the bus of the future, Envirobus. The joint ventur...

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...lf Navistar has made its engine division a core product that will support and move its truck/bus division into the future. The current emphasis on environmentally friendly products has made it important for companies to develop the technology that will meet this need. Navistar has been the leader in developing engines and clean air technology that will still meet the needs of all its customers. Although Henlys currently has a large part of the bus market, the environmental and safety issues will play a significant role in whether or not they will maintain their 47% share of the market. Navistar is well positioned to meet these strategic challenges and if they continue on their current path they will make major gains within the market.

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