This case explores some issues related to entering a new foreign market and describes the strategies that one UK firm is using to find success in the North American market for medium-distance intercity transport. Read the Chapter 10 Closing Case “Enter the United States by Bus”. Write a short summary of the material (one or two well-crafted paragraphs please) and answer the case-ending questions. You may use outside research to help answer the questions.
1. As a late mover into the US intercity bus market, what advantages and disadvantages does Megabus have?
2. Does Megabus have any overwhelming resources and capabilities?
3. As a college student, among choices of private car, train, airplane, Greyhound, and Megabus between Chicago and Columbus, which one would you choose?
Megabus has been able to offer this low because, the first thing it did was to eliminate the purchase windows for ticket purchasing, and sold tickets online only, which resulted in eliminating expensive terminal operations. Instead it dropped off and picked up the passengers from the side-way stops like public bus operators. This was one of the biggest advantage and the biggest change it brought forth.
Few Disadvantages besides the above facts are that the raising gas prices may affect the travel and low fares might affect the revenues if adequate number of passengers do not take the rides.
2) Yes, Megabus has backing from UK. It is backed by second largest transportation firm in UK, “Stagecoach group”. This group employs more than 18,000 people, and is said to be one of the top 250 firms in UK.
The capabilities Megabus service has a capacity to eliminate almost 24,000 car emissions making the company spend less on fuel cost and decrease in the release of carbon dioxide.
3) As a college student, i would prefer Megabus because of the advantages it holds – Low fares helps me to save money on transport, free wi-fi helps me to study even while traveling, Outlet to power my device, can make number of friends during the travel, and lastly, have a consciously good feeling that am not a part of polluting the environment.