PESTEL Analysis
Modern Ireland politics is founded on the accepted principles and provisions coming from being a member of the EU. However, Ireland has developed bilateral relationships with the US and the UK. Ireland aspires to the neutrality policy and has no agreement with NATO, which leads to a stable domestic and international political environment for the country. Such conditions might be considered favorable for Irish coach services as they can be profitably provided both domestically and abroad, cooperating with other market segments. Income tax is a foundation of the Irish taxation system.
Entrepreneurs are responsible for paying their taxes, according to the Self-Assessment system. The tax is standard – 20% to the minimum acceptable level of income; all incomes exceeding this level are taxed at 40% (How your income tax is calculated, 2020, para 6–7). Such a taxation approach allows businesses being stable and gaining reasonable profits.
The Irish economy is gradually covering from the crisis of 2008 due to the EU membership, foreign investments, and appropriate governmental policy. The result is high salaries and the almost absolute absence of unemployment. However, it might be assumed that the market of Irish coach services cannot be characterized as perfectly competitive as there is the biggest firm providing transportations by bus – Córas Iompair Éireann (CIÉ). The National Transport Authority governs public coach services following the Public Transport Regulation Act. Providers of transportation by bus are to be licensed or have a Public Services Obligation Contract, which results in conditions of fair competitiveness.
Ireland is attractive to place and travel around, which leads to a stable demand for coach services. The Irish and tourists tend to take bus trips both to visit the country’s attractions and to transit from one point to another as the roads are smooth and landscapes are exciting. Ireland has a temperate oceanic climate, which contributes to predictable weather conditions and bus transportations. Coaches themselves are modern and comfortable among all Irish bus service providers, and no substantial changes in this regard are expected.
Predicting Strategic Moves of Rivals
Within the scope of providing coach services, Irish companies have been stable for a substantial period. It might seem that each rival of GoBus – both big firms with subsidiaries and small ones – has taken its niche and adheres to an established strategy. Rivals’ policies are quite similar to each other – all of them use settled coach routes and gradually improve their services by buying new buses when current ones turn to be outdated. Thus, no rival that has a strong incentive to undertake fundamental strategic changes was identified.
The market of Irish coach services does not provide a significant number of rivals that are good candidates to be acquired. Most competitors demonstrate stable and high-quality transportations on the routes that GoBus might not be interested in or are a subsidiary of the biggest coach service provider – Córas Iompair Éireann (CIÉ). This company has many subsidiaries and has enough capital to acquire other firms. However, GoBus may acquire small companies, such as M&A Coaches Ltd or Whartons Travel, to expand its transportation routes.
The analysis of GoBus rivals showed that there had been no substantial expanses to enter new geographic markets for the last few decades. Then, only a small number of companies have the capacity and interest to act that way. Only CIÉ’s subsidiary, CIÉ Tours International, has the visible opportunity of the mentioned entry. CIÉ can extend its services to even more European regions, cities, and attractions. Furthermore, the competitor that can give new service offers and enter new service segments is Irish Coaches that specializes in providing group tours around Ireland. This firm has enough experience and capabilities to collaborate with a rail, airline, or shipping company to give tours at the international level.
SWOT Analysis
One of the GoBus’s crucial advantage among competitors is the arrival of 10 new 171 Volvo 9700 coaches. GoBus has one of the most modern fleets in the market due to a “two year vehicle replacement policy, compared to a six and a half year industry average” (GoBus.ie Fleet, no date, para 2). The company has many significant awards, which resulted from the recognition of GoBus in Ireland.
The first visible weakness of GoBus is the lack of experience in comparison to other market rivals. The company was founded in 2009, and although it seems to have a mostly good reputation among customers, there is a significant number of complaints on the firm’s refund policy. The other point to notice is too often delays and route changes due to various Irish occasions. On the official website of GoBus, the news related to unpredictable events that affect transportation usually appears late if to compare with competitors.
The critical opportunity of GoBus to develop its state of the art is the favorable political and economic environment of Ireland and stable situation in the market of coach services. Then, GoBus has expanded its services in 2019 and established a new route between Ballina, Co Mayo, and Galway. It might seem that the company may easily seize the possibility to extend its courses in the nearest future as it has enough capabilities and resources for this.
The main threat that might affect GoBus is customers’ dedication to the most popular firm in the market – CIÉ. Although Ireland has relatively developed legislation regarding fare competitiveness and taxation, the market of coach services may not be perfectly competitive. CIÉ does not act as a price taker, but the scope in which it offers transportations and international coverage attracts new clients and enhances its reputation.
Reference List
GoBus.ie Fleet (no date). Web.
How your income tax is calculated (2020). Web.