Brief Excerpt from Industry Overview Chapter:
Companies in this industry primarily sell fuel for motor vehicles; they may also offer car repairs or inspections. No major companies dominate the industry. Although major oil companies own few retail fueling outlets, many gas stations contract to sell specific brands of fuel.
Demand depends on the volume of consumer and commercial driving. The profitability of individual companies depends on the ability to secure high-traffic locations, generate high-volume sales, and buy gas at the lowest possible cost. Large companies have advantages in purchasing and finance. Small companies can compete effectively by having superior locations. The US industry is concentrated: the top 50 companies generate about 55% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Fuel for motor vehicles accounts for about 90% of industry sales. Major products sold include unleaded regular gas and diesel fuel. Gas stations also sell unleaded mid-grade and unleaded premium gas. Truck stops tend to sell more diesel fuel, since most commercial vehicles run on diesel. Companies may offer repair services alongside fuel retail. Some truck stops offer food, phones, showers, ATMs, Wi-Fi, and lounges.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook