COMPETITORS

HUNGARY

De Lijn’s competitors include BKV Zrt and Volanbusz. These are the most known in Hungary. Then you
have DKV Zrt, MKV zrt, SzKT Kft, PK Rt, KT Rt. Each city has a different transport company that transports
people to places within the city. BKV Zrt is the biggest public transport company in Budapest and also
one of the biggest in Europe. It has more than 200 bus lines and 40-night bus lines. Volanbusz is the best
option to travel between the smaller towns. Also, for the long-distance services from Budapest and the
major towns, you can book a seat before departure.

RUSSIA

WALIBI’s competitors include Divo Ostrov, Ostrov Mechty, Island of Dreams, Sochi Park and Gorky Park.
Divo Ostrov is the most popular most likely known as the Disneyland fantasy in Russian-style. The Russian
government has reported in 2017 that they are planning to create a new amusement park in Obninsk. It
will be called the Magic World of Russia, a fantasy world filled with the most spectacular rides, resorts
and experiences in the history of theme park. It will include the world’s largest waterpark and hotels. It
will be financed by investors from the United States and Middle east. The construction of the park will
start in 2023 and once it’s built it will be a great competitor against the biggest theme parks in the world.
PORTER’S FIVE FORCES
HUNGARY
Five Forces analysis of De Lijn entering the market in Hungary:
Competitive rivalry or competition  Strong force
 The presence of larger transport companies makes the competition strong. Competitors like BKV
Zrt and Volanbusz, which are known as the best transport services in Hungary. De Lijn should
compete against these two companies that have existed more than 40 years in the country.
Bargaining power of buyers or customers  Weak force
 Power of buyers or customers is weak, because there is not much variety. Most of the public low-
cost transport companies in Hungary are region specific. For example, each city has their own
bus company which travels the customer to the requested destination in the city. The prices of
public bus transport companies are almost the same, which makes De Lijn not different from
other companies.
Bargaining power of suppliers  Moderate force
 Number of bus suppliers is moderate, they can set their own conditions in term of prices. The
more buses you buy, the more power De Lijn can get to negotiate about the prices and the chance
for a discount. The higher prices for buses will affect the consumer needs because it will have an
impact on the price of the transportation service.
Threat of substitutes or substitution  Strong force
 In Hungary there are other alternatives of public transport services that you can use and those
are: tram, metro and trolleybuses. Those are called the low-cost network of public transport.
Other alternatives are the taxi, boat and airplane transport services which are more expensive.
The alternatives are high which makes it difficult for De Lijn to enter the market.
Threat of new entrants or new entry  Weak force
 The threat of new entrants for De Lijn is currently low. The only challenge they have is competing
against the existing competitors, which already have a brand awareness.
RUSSIA
Five Forces analysis of Walibi entering the market in Russia:
Competitive rivalry or competition against Walibi  Strong force
 The presence of theme parks in the market of Russia is an external factor that directly translates
to strong competition that Walibi Company experiences. Also, the new project of Magic World
of Russia which will be the biggest in the world.
Bargaining power of buyers or customers  Moderate force
 Low switching costs make it easy for customers to switch from one company to another. For
example, customers can easily switch from Walibi to his competing firms like Divo Ostrov. The
tickets of Walibi are a bit more expensive than Divo Ostrov tickets. In Russia there are also smaller
theme parks for a much cheaper price.
Bargaining power of suppliers  Weak force
 The weak bargaining power of Walibi’s suppliers are based on the following external factors; the
large population of suppliers, high overall supply and moderate variety of suppliers. Extern
suppliers for the construction of Walibi in Russia will be Studio 100 and Great coasters
nternational(gci). A single supplier cannot easily affect the industry because there are many other
suppliers available to support the company.
Threat of substitutes or substitution  Moderate force
 Walibi’s business is under constant pressure from potential substitutes. For example, the industry
environment in Russia offers other entertainment activities that customers could choose instead
of Walibi’s theme park. Like many zoos and aquariums: Moskow Zoo, Novosibirsk Zoo,
Moskvarium, Tula Exotarium, etc… The threat of other alternatives is much higher than the
threat of current amusement parks.
Threat of new entrants  Weak force
 The threat of new entrants for Walibi is currently low. It takes a large investment to erect Walibi
which is not possible for everyone. Walibi has already build a reputation and it’s very popular in
the Western of Europe. Which makes it much easier to enter the market in other countries
outside of Europe. The only threat of Walibi will be Magic World of Russia but that will take some
years before it’s opened.