D06 - Effect of Aftersales Quality of Service on the Bus Market Assignment

Assignment Task 

Abstract

The effect of aftersales Quality of service on the Bus Market in Saudi Arabia on the Bus Ownership Lifecycle

The aim is to change the perception of business owners and top bus management to understand the importance of the aftersales in the customers life cycle and the effect of customer loyalty and business return on investment.

Investigating the above question, I used my experience and surveys to test the relationship between variables. (Customer’s Expectations and The Service Quality provided)

I started with a conceptual framework that helped me map out which variables I will measure and how I expect them to relate to one another. I found that most of the customers touch points in the aftersales life cycle have been overlooked and neglected by the top management who basically look at the service / parts staff as being “Grease Monkeys”. The conclusion is that we have to change this perspective by assessing and mapping the aftersales process with all customer touch points and educate, train and incentivize staff to exceed the customer’s expectation.

Introduction

What is the effect of Aftersales quality of service on the Bus market in Saudi Arabia during the Bus Ownership Lifecycle?

Literature Review

The Bus Transport in Saudi Arabia

The total Saudi Arabia bus market was valued at USD 287.6 million in 2021 and is expected to grow 4.2 % during the forecasted 2030. The bus industry is led by Saudi Arabia in the Middle East. The ongoing demand for public, hajj, school, and tourist transportation in Saudi Arabia are the top buyers of buses. We also need to keep in mind that bus transportation is becoming one of the major pillars of the Saudi economy and a huge investment has been provided by the Saudi government.

Market Dynamics

Saudi intends to develop and improve public transportation, which would be expected to have a growth perspective for the industry development in the following years but not without the need for good aftersales organizations that is capable to provide good service and repairs to these buses that are usually linked to some type of functional contract (Governmental or major Organizations that need bus transportation).

The Saudi government has focused on making sure that the increase of the percentage of Saudi staff in this sector, will be well trained in order to provide the service and repairs needed and to reduce the out-of-country staff to ultimately strengthening the domestic sector, which in turn will boost the Saudi Arabia bus market over the forecasted period.

Report Segmentation

The market is segmented on the basis of type, seating capacity, and fuel type.

By Type

• Single Deck
• Double Deck

By Seating Capacity

• 15-30
• 31-50
• Over 50

By Fuel Type

• Diesel
• Electric/Hybrid
• Others

Insight by Type

The Single deck buses have been providing great service for many years for moving massive amounts of people i.e. public transportation, school buses, Hajj and Umrah.

Double-decker type segment is expected to grow at the fastest pace over the forecast period due to the government in Saudi opening up and encouraging the development of the tourist sector which in-turn will produce a huge revenue source for the country.

Insight by Fuel Type

Diesel fuel segment dominated the market in 2020 and is still expected to grow steadily over the coming years. With the increase needs of protecting the environment the government plans on introducing electric buses into the Saudi Market.

Competitive Insights

Some of the major players operating in the market include AB Volvo, Alexander Dennis Limited (ADL), Ankai Automobile Co. Ltd, Ashok Leyland Limited, Beiqi Foton Motor Co., Ltd., Daimler AG, Mitsubishi Fuso TruckEicher Motors Limited, Hyundai Motor Company, King Long United Automotive Industry Co., Ltd., MAN SE, Mercedes Benz AG, and Bus Corporation, Scan

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