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Porter's Five Forces Analysis Essay

Decent Essays

Five Forces Model:
The Threat of new entrants as per Porter's Five Forces Analysis for the PTO – Public Transport operator in Singapore is considered low generally, since licenses of Rail has been continuously running for up to 30 years and for buses for 10 years, meaning there is almost no risks nor possibility of new entrants. Another reason would be the lack of chance for a new player of building up proficiency to convince the Regulator of the capability to run the transportation services.
As for Dubai Transport System there is also no room for another operations to run any other transport network nor to bid for the license to compete with RTA. However, In the future the situation for the public Transportation service in Singapore is forecasted to change, if it agrees in moving to the agreements model. It would turn to open up competition for the operating license as quite feasibly to make the tenders available for packets of routes rather than to the entire network, by this means they will be …show more content…

The only way to avoid public transport is either to walk, ride a bicycle or own a car. Although the bargaining power of customers is low and there is low customer concentration, but we highlight that PTOs do not have the ability to set prices either, as Fares are controlled by the Regulator. Consensus from speaking with Management from the PTOs is that if Fares are not kept affordable by the Regulator, the incumbent Government may risk facing political repercussions at the ballot-box. To summarise, customers of Fare based transport do not have the ability to directly influence prices on the PTOs, but indirectly through the Regulator. Customers also have little bargaining power over taxi fares. When fares do increase, customers can change their spending pattern, but they have exhibited the tendency to eventually accept the new normal, and revert to their prior spending

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