Business Strategy Analysis

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Business Strategy Analysis

Brief Introduction

There are 2 options that are currently available to you, the Board of

Directors, the first is to purchase more vehicles in addition to the

current fleet and the other is to expand to a new location from which

to run the company.

New Vehicles

Advantages

The advantages of purchasing 15 low-floor easy-access buses are that

it leads to a growth in the size of the current operating fleet. As

can be seen from the benchmarking data although the current fleet size

is bigger than our rivals, Destina, the average age of the fleet is

double theirs. The introduction of new buses to the fleet will allow

the customers to travel in more luxurious surroundings and so will

increase the overall pleasure of the journey which is likely to lead

to more people wanting to use our company's buses on a regular basis.

The fact that these new low-floor easy-access buses operate as a fifth

of Destina's fleet shows that they are a forward thinking company who

are looking towards maintaining a greater market share by improving

the level of customer satisfaction.

By looking at our maintenance record over the previous years it can be

ascertained that as the fleet has grown in age the amount of

breakdowns and the cost of maintaining the fleet are beginning to

rise. This can lead to unreliability in the transport network as buses

may fail to arrive on time due to breakdowns. The introduction of

modern buses will help to alleviate these problems and bring

reliability back into our operating procedures.

Looking at the population trends it can be seen that within our

operating boundaries in the forecasted future the number of people

ages over 60 and under 11 will have increased so there will be

increased demand for low-floor easy-access buses to ensure that these

people have a safe and pleasant journey with minimal difficulties.

The newer fleet offered by the company may also help to bring back up

the number of passenger journeys as it has fell over recent years

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