Gas Stations

Gas Stations

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.

COMPETITIVE LANDSCAPE

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 60% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Fuel for motor vehicles accounts for about 90% of industry sales. Other products also include candies, prepackaged cookies, and snack food; automotive parts and supplies; household fuels such as oil, LPG, wood, and coal; and tobacco products.