The U.K Railways Industry is dominated by many railways companies that depend on train suppliers to continue operating smoothly. The number of train suppliers is low when compared to the number of railway companies in the industry. The industry cannot substitute trains with any other mode of transportation. This gives the suppliers higher bargaining power. There are several train suppliers in U.K. This is an analysis of the railway industry using Porters Five Forces.
Bombardier Transportation U.K
The company manufactures both trains and airplanes (Bombardier UK, 2018, para. 1). It is one of the largest train manufacturers in the U.K. The company is known for manufacturing modern, state of the art trains and airplane. The company also exports its products to various countries (Bombardier UK, 2018, para. 5). It has a high bargaining power in the railway's industry since it does not produce trains only and has an extensive market to sell its products.
Hitachi Rail Europe
The company has created a new manufacturing plant in the U.K (Hitachi Rail Europe, 2018, para. 3). It has been supplying the U.K Railways Industry with modern trains in the past. The new manufacturing facility might have average bargaining power since it is starting operations. However, already the company has orders in place to manufacture various trains (Hitachi Rail Europe, 2018, para. 3).
Siemens U.K
The company manufactures many products and does not entirely depend on the U.K Railway Industry to stay in business (Siemens, 2018, para. 1). It is also involved in the production and marketing of healthcare products, energy products, and building technologies (Siemens, 2018, para. 2). Also, the company has a broad market for its products since it exports to other countries. Therefore, its bargaining power is high in the U.K railway industry.
Conclusion
Suppliers have higher bargaining power in the U.K Railways Industry as they produce many products. They do not rely on the industry alone to stay afloat. They have also ventured into the international market for more opportunities.
References
Bombardier UK, 2018. Bombardier in the United Kingdom.
Available at: https://bombadier.com/en/about-us/bombardier-in-country.html [Accessed 30th January 2018]
Hitachi Rail Europe, 2018. About Hitachi Rail Europe. Available at: hitachirail-eu.com/about/company/about-us [Accessed 30th January 2018]
Siemens, 2018. Our Business. Available at: https://www.siemens.com/uk/en/home/company/about/business.html [Accessed 30th January 2018]
