Amtrak

Executive
Presentation
HAGGS (HARDWORKING, ADAPTABLE GROUP GUIDING STRATEGY)

AUGUST 4TH, 2020

BILL ERWIN

OGL 355
Agenda
► Introduction to Amtrak
► Amtrak’s Organizational Structure
► Amtrak’s Executive Leaders
► Environmental Analysis
► SWOT Analysis
► Competitive Advantage
► Going Global
► Team HAGGS Recommendations
► Conclusion/Summary
► References
Introduction
► The National Railways Passenger Corporation, Amtrak, is a corporation striving to
deliver a high quality, safe, on-time rail passenger service that exceeds customer
expectations. Amtrak provides medium and long-distance intercity service in the
contiguous United States and to nine Canadian cities.
► Mission: Amtrak is the nation’s intercity passenger rail operator and infrastructure
provider. We provide safe, efficient and effective intercity passenger rail mobility
consisting of friendly high-quality service that is trip-time competitive with other
intercity travel options.
► Vision: We will double Amtrak ridership by 2040 by becoming the preferred mode of
intercity travel within the corridors connecting America’s major metropolitan areas and
support the growth of multimodal travel choices by providing infrastructure, services
and capabilities to passenger railroads nationwide.
 Amtrak’s Organizational Structure
CEO

Marketing and Planning,

Operations Business Finance Law Administration
Technology, &
Development Public Affairs

Vice President of
East, Central, & West Northeast Corridor Human Resource
Information Technology
Business Development
Mechanical
Labor Relations
Government Affairs and
State Supported Service Corporate Communications
Engineering Business Development
Procurement
Real Estate, Stations, &
Safety, Compliance, Long Distance Service Facilities
Enterprise Project
& Training Business Development
Management

Network Support Passenger Experience

Amtrak Police Product Support &

Management

Corporate Security
Marketing
Amtrak’s Executive Leaders
William J. Flynn
Amtrak President and Chief Executive Officer
● Appointed by the Amtrak Board of Directors
April 15, 2020.
● Had been a successful leader across multiple
modes of transportation, including rail, maritime
and aviation.
Stephen J. Gardner
Senior Executive Vice President, Chief Operating and
Commercial Officer
● Provides day-to-day operational leadership for
Amtrak
● Responsible for efforts to expand state-
supported service partnerships
Eleanor D. Acheson - Executive Vice President and General
Counsel & Corporate Secretary
Roger Harris - Executive Vice President, Chief Marketing and
Revenue Officer
Scot Naparstek - Executive Vice President, Chief Operations
Officer
Dennis Newman - Executive Vice President, Planning &
Strategy
Steve Predmore - Executive Vice President and Chief Safety
Officer
Qiana Spain - Executive Vice President and Chief Human
Resource Officer
Tracie Winbigler - Executive Vice President and Chief
Financial Officer
Christian Zacariassen - Executive Vice President and Chief
Information Office
Environmental Analysis
Threats
○ Threat of new entrants is exceptionally low
■ High cost of entry into railroad business
■ Existing rail companies reluctance to offer access to
already existing tracks
○ Threat of Substitute Products is High
■ Convenience of mobile booking
■ Updated airplanes and buses
■ Amenities
■ Competitive Rates with other option
Target Market
○ Young/economical travelers (18-30 years old)
■ Extra baggage at no extra fee
■ Fare list posted, no additional charges
■ Convenient for college students
○ Individuals preferring comfortable travel
■ Spacious Seating
■ Bedroom Accommodations
■ Variety of Food/Beverage Options
■ Wifi
Bargaining Power
○ Low to moderate buyer power
■ Few alternative rail options
■ Modernization of stations and amenities
■ Growing services between metropolitan markets
■ Convenient scheduling and competitive trip times
○ Low Supplier Power
■ >750 companies spanning 39 states manufacture train
components
■ Federal funding & increased rail investments =
competition between supply companies
Industry Rivalry
○ Low Threat of Industry Rivalry
■ Sustained revenue in all ticket areas for the last 3 years
■ Expansion of the Northeast Corridor
SWOT Analysis
Strengths Weaknesses
● Connecting rapidly growing metropolitan areas across the
nation with rural areas through a developing network of ● Aging fleet and equipment and risks
commercial tracks associated
● Customer experience at the forefront of travel operations
● High cost recovery ratio that creates cash for new ● Infrastructure capacity limitations
infrastructure investments ● Federal funding at discretion of Congress
● Increase in stakeholder support and growing stability of
federal funding for existing Amtrak investments ● COVID-19 pandemic
● Experienced and well-trained staff in all levels of the
workplace

Opportunities Threats
● New and refreshed equipment. ● Loss of funding
● Redeveloped product elements that strengthen ● Decrease in revenue due to consumers seeking
● customer experience while lowering costs and
● improving yield.
alternative modes of transportation
● Consist and capacity planning to optimize ● External invasion of outside organizations with
● Standards for efficient, consistent and timely innovative adaptations to meet consumer needs
● Co-branding opportunities to increase revenue. ● Being priced out or bought out
● Partnerships with connecting transportation
● providers can strengthen last mile service.
● Partnerships with destinations, travel vendors,
● Capturing millennials as new customers.
 Competitive Advantage
► Expand shorter routes, promoting city-to-city short-haul trips

► Resource-based view focusing on Amtrak’s ownership of high traffic railway networks, stations, and parking is are

assets with sustained growth.

► Focus infrastructure investments on rail lines Amtrak owns in exponentially growing markets.

► Financial backing of the US government.

 Going Global
► Expansion to India through partnership with existing rail lines

► Employment of geocentric attitude

► Practicing openness and inclusion

► High regard for diversity

► Learn, understand, honor, and accept cultural differences

► Poor current economic stance - would make going global difficult

HAGGS Recommendations (Emily)

• Integrate adaptive approaches to progress through the business plan established

• Discuss the external and internal factors that can and will contribute to the
longevity of employee/consumer/stakeholder satisfaction
• Analyze the applicability of the SWOT analysis as the organization grows and
adapts to business demands
• Open conversations when wrongdoings occur with an intention to listen, solve,
and prevent reoccurrences
Summary
● Amtrak’s organizational structure is led by the CEO and consists of six primary areas:
operations, marketing and business development, finance, law, administration, and planning,
technology and public affairs.
● The primary goals of Amtrak’s leadership are to provide operational daily leadership, build
partnerships, drive strategy, and guide development and planning.
● The environmental analysis of Amtrak identified threats Amtrak is facing, bargaining powers of
both buyers and suppliers, industry rivals, and Amtrak’s target market.
● The SWOT Analysis assisted in identifying Amtrak’s strengths and weaknesses, opportunities,
and threats.
● The competitive advantage of Amtrak the expanding of shorter routes, city-to-city short-haul
trips, and the financial backing of the federal government.
● Going Global - if Amtrak wants to expand, the most probable course of action would be to
explore partnerships with India’s rail opportunitites
● Recommendations - Amtrak is a unique global transportation provider, meaning the
organization must reflect both internal and externally in order to best maintain business growth
in all fronts
 References
Amtrak. (2020). Amtrak Five-Year Service Line Plans (Fiscal Years 2020-2025 (Base + Five-Year Strategic Plan)).
https://www.amtrak.com/content/dam/projects/dotcom/english/public/documents/corporate/businessplanning/Amtrak-Service-Line
-Plans-FY21-25.pdf
.

Amtrak (2020). “Amtrak Executive Leadership.” www.amtrak.com/about-amtrak/executive-leadership.html.

Blue Green Alliance. (2015, January). Passenger Rail & Transit Rail Manufacturing in the U.S.
http://www.bluegreenalliance.org/wp-content/uploads/2015/01/PassengerRailTransitRailManufacturing.pdf.

Eckstein, J. (2020) How Amtrak Makes Money. Investopedia. https://www.investopedia.com/articles/investing/072115/how-

amtrak-works-makes-money/asp.

Indian railways: Network, investments, market size, govt initiatives. (2020, July 13). Business Opportunities in India:
Investment Ideas, Industry Research, Reports | IBEF. https://www.ibef.org/industry/indian-railways.aspx

Lazo, Luz. (2020). “Amtrak Says It Needs Additional Bailout of Nearly $1.5 Billion to Stay Afloat.” The Washington Post, WP
Company, 26 May 2020, www.washingtonpost.com/transportation/2020/05/26/amtrak-says-it-needs-another-15-billion-
bailout-stay-afloat/.
 References
Oh, Simon. (2017, January). Amtrak CEO Announces Organizational Revamp.
http://www.railpac.org/2017/01/10/amtrak-ceo-announces-organizational-revamp-for-2017/ .

Short, A. (2019) Amtrak Wants to Compete with Planes and Roads. https://mass.streetsblog.org/2019/11/12/amtrak-
wants-to-compete-with-planes-and-roads/.
Wisniewski, M. (2019). Amtrak Wants More Short-Distance, City-to-city Trains, But At What Cost?
https://www.chicagotribune.com/business/ct-biz-amtrak-short-routes-getting-around-20190311-story.html. Accessed 28 July 2020.