Four Economic Factors And Macroeconomic Analysis Of Comfortdelgro

Decent Essays

ComfortDelGro is one of the largest multinational transportation companies inaugurated in 29 March 2003 through the “merger of two land transport companies - Comfort Group and DelGro Corporation”, (ComfortDelGro, n.d.) both of which were founded in the 1970s. It is the market leader in Singapore’s transportation industry and “has a global fleet of 45,335 vehicles”, (ComfortDelGro, 2017) (Appendix _) with its core services that include “bus, taxi, rail, car rental and leasing, automotive engineering services, inspection and testing services, driving centre, insurance broking services and outdoor advertising”. (ComfortDelGro, n.d.) Furthermore, it has an extensive presence in overseas markets that span across the “United Kingdom, Ireland, Australia, Vietnam, Malaysia, as well as 11 cities in China that include Beijing, Shanghai, Guangzhou, Shenyang and Chengdu”. (ComfortDelGro, n.d.) (Appendix _)

The following four macroeconomic factors will affect the transportation industry.

(1) Petroleum Prices

The Organisation of the Petroleum Exporting Countries (OPEC) aims to coordinate and unify the petroleum policies of its Member Countries and ensure the …show more content…

Competitors in the public buses industry includes GoAhead, Tower Transit and SMRT, all of which operates under the Bus Contracting Model whereby the Land Transport Authority (LTA) determines the bus routes that these buses operate, pays them a fixed fee to do so and retains the fare revenue. As such, SBS Transit will receive a smaller portion of the total fees given that they will be running lesser bus routes as compared to before due to the increased competition. They also ought to continue offering exceptional services to their passengers to stay ahead of the competition and prove to the LTA that they are able to take on more bus routes in

Get Access
Get Access