Pricing Strategies for FirstGroup PLC Essay Example | Topics and Well Written Essays - 2500 words

Pricing Strategies for FirstGroup PLC - Essay Example This paper illustrates that the FirstGroup Company operates a wide range of transport services such as bus, coach, rail & tram, as well as, the yellow school bus. The headquarters of the company are at Aberdeen Scotland, with the company’s Chief Executive Officer and chairperson being Tim O’Toole and Martin Gilbert respectively. These two provide the company with a great insight and appropriate leadership necessary to achieve its goals and objectives. The incorporation of the company was in 1986 and has had tremendous growth over the years to expand its operations even to international markets. Currently, it is among the leading transport services company in the world, specializing in road and rail transport. This is evident from the revenue brought in by the company over the years, such as in March 2013, the company recorded net revenue of  £ 6,901 million. On the other hand, the operating income of the company for the same financial period was  £ 335 million, whil e the net income for the company during the same period was  £ 172 million. This shows how profitable the company is in its operations. the company provides employment opportunities to numerous jobless people across the markets in which it operates, with its number of employees by the end of a trading period of March 2013 being 120,000. In addition, the company has an online platform that enables its customers to enjoy convenience and efficiency while dealing with it, as well as, provide the company an opportunity to increase its market control and holding within the industry by gaining a competitive advantage over other market players. The FirstGroup PLC undertakes a number of transport services across various markets and routes within the United Kingdom, the United States, Canada, Ireland and Denmark where it operates. In order to maximize its profits, the company has to adopt a pricing strategy that enables it to make a profit with every transaction. As such, it adopts a differ ent pricing strategy depending on the type of transport service it provides, such as by bus, train or tram, as well as, the route and distance in which it operates, considering the other factors if transportation such as traffic jams, calibre of passengers, as well as, the frequency of the routes they use.