Advantages and Disadvantages of Mega Bus in the US Intercity Bus Market

Running head: CASE STUDY 1
Case Study on Mega Bus
Student
Institution

CASE STUDY 2
1. As a late mover into the US intercity bus market, what advantages and disadvantages
doers Mega bus have?
Advantages of mega bus
Mega bus has very low cost as its tickets a very cheap - this is the mode of traveling
which has the lowest cost as from 1$. This has greatly changed traveling habit in the US
especially for the young people and the students. The distance in between is too far to drive for
leisure but it’s very close as per the amount paid for these buses making it more cheap and
attracting many customers. Also all tickets are booked online eliminating maintenance of ticket
booths thus attracting democratic groups which are more educated (Bie, Gong, & Liu, 2015).
Coaches of mega bus are well equipped with power outlets and Wi-Fi –this allows
passengers to choose mega bus as they feel it’s more productive and has more fun. This is
because no other travelling is cool like that even first class in airlines (Bie, Gong, & Liu, 2015).
This makes almost 37% of the passengers to make decision to aboard this mega bus due to
strongly available power outlets and Wi-Fi. This also makes people who are running businesses
to continue working while in the bus due to availability of strong reassures required.
The buses are well maintained – mega bus as they always follow buses of china town,
they stop regularly so as they can disembark and the passengers to board the vehicle. This saves
a huge amount of money of the customers and also the time (Zhang et al., 2014). If the buses are
poorly maintained no passengers will be tempted to aboard the mega bus as they feel not save
and they are wasting time.

CASE STUDY 3
Mega bus offers “green” advantage- this is in terms of prices of the gas and the rise of
environmental consciousness. This is because the mega bus is more fuel efficient four times
more than the car. Also it has reduced its fuel consumption by almost 11 gallons a year which is
like taking off road 24000 cars. This has made transportation easy in US.
Mega buses are more reliable- this is because they drop everyone in his or her deports
and picks them up. This makes everyone be able to know that he or she will be able to get easy
transportation through these buses (Zhang et al., 2014). Also there tickets are more reliable as if
booked online one is able to tell when there is plenty of sits and also the he or she is able to
choose the suitable sit for him or her.
Disadvantages
High competition- mega bus is highly competed by the stagecoach group. This group of
stagecoach employs approximately 18000 people to work in the airlines which make the coaches
to carry its activities of transportation in simpler way than the mega buses. They offer dirt cheap
tickets for the early passengers and relative high prices to late passengers thus resulting to high
competition. Stagecoaches have workers who attend the customers in more easy way without
taking a lot of time (Warnock et al., 2015. Also this makes mega bus to have lower large number
of early passengers than late customers as they have moved to stagecoach which is cheaper than
any other. Also it competes with railway in some routes where the tickets of mega bus cost one-
tenth of Amtrak.
It takes a lot of time – even though the passengers like the Wi-Fi this kind of
transportation doers not suit long distance travelers. This is because they became tired on the
way due to many terminus of dropping passengers and others start the journey. Mega bus is only