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Smrt

In: Business and Management

Submitted By joejoe12
Words 363
Pages 2
Rivalry Among Existing Firms Trains
• Duopoly system in Singapore, train services (Mass Rapid Transit) dominated by SBS Transit and SMRT Trains.
• Currently 4 major ‘lines’ in Singapore, namely Circle Line, North-East Line, East-West Line and North-South Line.
• Though the train services were owned by Land Transport Authority of Singapore, the trains are operated by two operators, SMRT Corporation (SMRT Train) and ComfortDelGro (SBS Transit)
• Dominated by SMRT Corporation, they operate the Circle Line, North-South Line and East-West Line. The remaining North-East Line is operated by SBS Transit.

Taxis
• Initially with only 3 major operators for taxi, this had since increased to 7 taxi operators.
• Major operators in Singapore are ComfortDelGro (includes CityCab, Comfort, Yellow Top), TransCab and Taxi by SMRT Corporation (known as SMRT Taxi).
• The other operators with less than a fleet of 2,000 taxi are UnionCab, PrimeCab, Premier Taxi and SMART Cab.
• With the increasing number of companies into the Taxi Industry since 2004, possibilities are there might be an increase in Taxi Operators in Singapore.

Buses
• Numerous of operators in Singapore whom offer public and private bus services.
• Focusing into the public bus sectors, dominated by SMRT and SBS Transit.
• SMRT covers a limited of the public bus service sector, offering less than 100 routes (bus services) and with a limited fleet of 991 buses
• As compared to SBS Transit, the latter offers more than 4000 fleet of buses and serving more than 300 routes.
• Among all services provided, there are no industry growth as the market share for the following sectors are fixed, no improvement could be done.
• The market is concentrated to only 2 companies, for the case of trains. However, the two companies could not manipulate the pricing as they are controlled by a governmental body, Public Transport Council.
• In fact, there is no product differentiation as an alternative to public transport would be private transport or a slightly expensive method of public transport, the Taxies.
• Such business carries high fixed cost, the tracks, roads were maintained by the Land Transport Authority (Government), however assets such as the car, trains, buses were sourced and purchased by the company itself.

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