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bus industry analysis

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 venture was commissioned by the Department of Energy in response to increased pressure from various environmentalist groups to develop buses that are safer and environmentally conscious. This acquisition makes Henlys the largest company in sales of school buses in the North American Market. Besides school buses, Blue Bird also produces commercial buses and recreational vehicles. Henlys is also able to take advantage of Blue Birds extensive network of distributors. These areas complement Henlys other areas of operations by ...

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