Swot Analysis of Network Rail

1641 words 7 pages
SWOT Analysis

Strengths:
Network Rail took over ownership by buying Railtrack plc, which was in railway administration, from the Railtrack Group plc for £500 million in 2002. Railtrack had become subject to broad-based and persistent criticism, notably over cost escalations and delays with the West Coast Main Line modernisation and the circumstances surrounding accidents at Southall (1997), Ladbroke Grove (1999) and Hatfield (2000). After these incidents Railtrack’s cost spiralled out of control, to remedy this situation which would ultimately lend to the company collapsing and being purchased by the government. By purchasing Railtrack when the company was being heavily criticised and by renaming it Network Rail it was seen as a
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Road haulage is the use of heavy goods vehicle’s to transport products and materials from place to place. This could happen if railway lines get congested or routes are closed due to maintenance work or lack of use.

PESTLE Analysis

Political:
Network Rail has to follow the rules of the Office of Rail Regulation (ORR). If they do not adhere to the rules and regulations of the ORR, they could face a fine which could result in the company paying millions of pounds.
With England being part of the European Union (EU) Network Rail can buy and sell materials from any country in the EU because the has lowered the trade barriers.

Economic
The railways can be used to transport goods all over the country. Some of the benefits of using a train to transport goods are:
• Faster than lorries/trucks
• Trains have multiple carriages so a number of goods can be delivered at once
• It’s cheaper than using lorries/trucks

As well as being part of the EU, Britain can trade materials with countries outside of the EU. Being able trade goods with a number of countries allows Network Rail to negotiate better deals on goods.
The inflated price of fuel and the introduction of the low emission zone may increase the demand for railway industry. As the inflation arise the costs of living increases therefore the price of using the railway must be at the price that the country can afford. Often delays to the passengers and delivering goods may costs the individuals and businesses,

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