Speedy Hire Plc Essay Example | Topics and Well Written Essays - 2000 words

Speedy Hire Plc - Essay Example y has increased the requirements for the housing sector in the country and the reduced cyclicality has allowed companies to anticipate the market trends more effectively. Companies including Speedy Hire Plc within this sector is continuously relying on the information technology therefore there will be increased dependence on technology in the future also. Legal environment in the country is favorable. Environmental concerns for companies are increasingly becoming a burning issue for the hire industry and it is believed that companies successfully addressing environmental issues will competitive advantage in the future. Starting with a very humble beginning, Speedy Hire Plc is now considered as top company in UK for hire market and is listed on Stock Exchange. Speedy Hire Plc is a business to business company and operates through two divisions of Tool Hire and Equipment Hire. The Tool hire division operates through five regional companies with 235 depots whereas Equipment Hire division also operates through the five businesses with 126 depots. Over the period of time, company has made an organic growth and now considered as one of the major players in the market. The competitive landscape in the market is changing. The market historically remain divided into two product lines however this traditional demarcation is changing and market seems to be consolidating. The increasing environmental concerns and increased use of information technology are the two factors which are further pushing the competition to the limits. This further aggravates the fact that there are very low barriers to entry into the market therefore there remains a great threat of new entrants into the market also. Besides small players mushroomed at local level can be considered as bigger threat also. As discussed above that the barriers to entry are low in the market therefore there is a strong possibility of new entrants making into the market however considering the cost of doing business,