Arriva Case Study

1348 Words3 Pages

Introduction: Arriva company was founded in 1938 by Cowie family in Sunderland as a (second-hand motorcycle shop).The company started to become bigger during the 90th, especially in 1997 by making its first deal in mainland Europe. Nowadays, Arriva is controlled by Deutsche Bahn and they became one of the leaders on transport market in Europe. Moreover, the company has around 54,500 employees who are serving in 14 various countries in Europe. They transport around 2 billion passenger through year. Arriva offers to their customers numerous ways to transport by having a lot of services for example: inter-urban commuter coaches, trams and light rail, water buses, local buses, train and airport transport services and other things. Arriva sales …show more content…

Businesses can not change these factors, however they must adapt them to be success in their competitive market. First of all, the economic environment which consists of numerous factors.For instance: Gross Domestic Product,Profit earning rate etc. It has a quick impact on the business which mean that if any changes happened in the economic environment business must directly follow it.It could be like bonds for the business or may create new chances.Second feature(factor) is social environment will depend on where the business is exit. Countries have different demographics and culture. Culture will depend on imitation and customs of the region, while demographics depends on the segments of the country if the product can be suitable there or not. For example: Japan has high percentage of old people, however, India has high percentage of young people. After long time social environment will have an excellent effect on the business. Technology relies on how the product quality is improving by using various tools and machines.Any business should …show more content…

One factor is tax on fuel which is an advantage for public transport sector. High taxes applied by government on fuel provides arriva with an opportunity to gain more customers. The key point will be providing a service that gives the same value with less price by using public transport instead of cars. Therefore, Arriva offers tickets with various prices, so people could choose the most suitable price for them. Responding to market needs is a crucial factor for arriva. With huge number of customers is impossible to provide a service that meets every individual wish, but there are common needs that they share; for instance: Security, cleanness, reliability, pleasant trip and well-maintained vehicle. In addition, Arriva should look more closely for specific market segments like school children or elderly people by offering new buses to them with cheaper price. As any business Arriva needs to cover its cost or most of it in order to be able to provide a satisfying service. Unfortunately, this is not possible in areas where there is low customer numbers. The same reason sometimes prevent Arriva company from providing night buses, thus this will lead to net loss for some time.There is also pressure on public transport sector in UK since this sector helps to support the economy by giving citizens access to education, jobs, and leisure; especially

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