"Running head: Megabus entering foreign market1Megabus entering foreign market Megabus entering foreign market 2Megabus market is a popularly and widely used type of transport in the U.S Midwestregion and UK. Over the recent years, this company has recorded a significant number ofcustomers for its usage due to its ease of ticket acquisition from as low as $1.0 through onlinebooking. When this company moved to the US intercity bus market, there emerged so manypositive impacts on the economy than the negative impacts. The following are the merits inwhich the late entry of Megabus into the market exhibited.First, before Megabus ventured into this market operations, it had leant at the past themistakes committed by the fellow competitive companies that entered into the US transportsector. This was noted as a result of the feasibility studies that were conducted before to gaugethe sources of these failures. The most important point here was based on the fact that companiesventuring into new market have to learn avoiding the use of the methods used by the companiesthat landed them into mistakes encountered. Before Megabus started the business, it had toanalyze various companies like Greyhound while accessing the result of bankruptcy during mid- 90s. The report showed that Greyhound had to suffer due to poor maintenance of the terminals,increased bus fare and risky operational conditions exercised (Walsh, 2010). Therefore, the above challenges have been tackled by Megabus through reduction of busfare to as low as $1, introduction of free Wi-Fi in their buses, good aesthetic of the bus withpower taping points in them, ticket acquisition via online flat form which eliminated windowticket purchasing with high ticket prices. Also, Megabus had to avoid more expenses on terminaloperations as a result of dropping passengers on the way (Austen, 2011). Megabus entering foreign market 3 The second advantage of Megabus market was the transformation of the industry as aresult of internet introduction in ticket picking. That means the previous existing bus transportbefore the emergence of Megabus had to be transformed into a more advanced and technologicalmeans under the watch and control of Megabus. The next advantage of entrance of Megabus into the market transpired to the introductionof first mobile app which was intended to be used for bus services, bathroom services, free Wi-Fiand others. This helped Megabus to rapidly improve in its business and overtook the previouscompanies. Megabus fortunes tremendously rose up to a level that they could transport over onemillion customers at a span of six weeks which is absolutely high.The last advantage was a skillful assessment of work done by Megabus on their drivers.This was done in reference to the previous companies and Megabus was not willing to repeatagain the mistakes which were committed by the drivers of other companies. This madeMegabus to employ more professional drivers to curb this situation. It was the mandate of thesedrivers to perform their duties will while keeping into mind good services rendered into theircustomers.Despite the existence of merits as a result of entrance of Megabus into the market, thereare a number of demerits too that includes the following:First, there could be a great reduction of revenue due to extreme low fares of $1 and thisis a big challenge for Megabus business.Secondly, the great investments made on installing Wi-Fi and power points might createsome negative loop in the Megabus business economy when not well monitored.Megabus entering foreign market 4 Another demerit is based on unfair competition which may make their revenues go downsince Megabus will become an easy target from the old players in the entire intercity transportindustry. It will happen that most of the customers for Megabus will join the growing base of theMegabus.Lastly, it is very risky for Megabus Company to allow their customers to allow theircustomers to queue up while waiting to be picked up. This is a big disadvantage to them since itis imposing more competition as compared to other companies hence this will make thecustomers to run away from seeking for Megabus services.Megabus and its overwhelming resourcesThe issue of whether Megabus has overwhelming resources and capabilities or not isbased on the fact that its services are running smoothly as per its requirements set before. Therefore, according to various sources, Stagecoach is an extended group, second largestfirm from the UK, which provides Megabus with a backup since it is highly experienced in thetransport industry. Stagecoach is focusing in providing services on employees based onexperience in order for the corporate culture to be transmitted to Megabus. That was reinventedby Megabus in order to make a provision of more convenient and affordable and attraction tocustomers. With advancement in technology, Megabus has been able to get its feedback throughmarketing in the social media sites like Facebook and Twitter. This helps the Company incollection of its feedback form the customers hence making Megabus to align its operationsbased on dynamic demands of the customers. The communication platform provided by Megabus entering foreign market 5Megabus to its customers helps in formulation of the strategies based on the customerrequirements. Furthermore, internet has played a major role in embracing Megabus business through E- commerce platform. E-commerce plays a great role in provision of cheaper adverts andcommunication with customers. Most of the online business carried out by Megabus has reducedadvertisement cost as travelling expenses are reduced and number of staff required is alsoreduced.Finally, I would address this last part while playing a role of a college student. In thiscase, as a college student, I would absolutely prefer Megabus over any other means. I prefer itsince as a student, I am very certain of sure things like affordable discounted fares starting fromas low as $1.0, Megabus will be very environmental friendly as a means of transport, I will beable to browse internet free of charge since there is free Wi-Fi hence doing my assignments andmaking downloads while travelling will be faster. Also, Megabus has free power points that canbe used to charge my phone and machine and a cool environment that enhances highconcentration on my notes (Walsh, 2010)."