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bus industry analysis

building on their core competencies. Prior to the Blue Bird acquisition, Henlys Group used the cooperative strategy of equity strategic alliance to expand its bus and coach operations outside of its borders. With this one acquisition, the Henlys Group has achieved economy of scale and now controls 47% of the school bus market in North America. Henlys equity alliance partner profile includes a partnership with Volvo that jointly owns Prevost car Inc. and Nova bus. This joint venture accounts for a 25% market share in North Americas coach market and is the market leader in bus shells for motor homes supplying 80% of that market. Another alliance is with the Mayflower Corporation in the TransBus International Ltd., which is the fourth-largest bus and coach manufacturer in Europe. As a result of the acquisition and equity alliances, the Henlys Group saw its operating profits soar 119% in 2000. Blue Bird is now the Groups core activity and presently accounts for 81% of the operating profits and sales.Through Blue Bird, Prevost car and Nova bus, Henlys Group has the widest product coverage in the North American bus and coach market. Collins Industrial Corp. is a leading manufacturer of ambulances, small school buses, commercial buses, and terminal trucks. Collins is known for their innovative ideas in the configuration and set-up of their ambulances and the seating configuration of their small school bus products. Collins has used the acquisition strategy to enter new markets and to overcome entry barriers. The use of acquisition has also given Collins economies of scale within the ambulance and small school bus industry. Collins introduced its first small bus in 1967 to America and became the largest producer of small school buses in the United States after its acquisition of MidBus Inc. in 1998. They have seen increases in sales in the small bus market. It has attained a backlog in their bus product lines that have increased ...

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