strategic-management

156 KRISTOPHER J. BLANCHARD
EXHIBIT 3 National Railroad Passenger Corporation and Subsidiaries (Amtrak)—continued
Consolidated Balance Sheets
2008 2007 2006 2005
Commitments and Contingencies
Capitalization
Preferred stock $10,939,699.00 $10,939,699.00 $10,939,699.00 $10,939,699.00
Common stock $ 93,857.00 $ 93,857.00 $ 93,857.00 $ 93,857.00
Debt and other paid-in capital $17,415,041.00 $16,100,513.00 $14,829,886.00 $13,559,085.00
Accumulated deficit
Accumulated other comprehensive
-$24,094,909.00 -$22,962,131.00 -$21,819,117.00 -$20,751,127.00
income (loss) -$ 136,359.00 -$ 219,190.00 -$ 1,728.00 -$ 11,454.00
Total Capitalization $ 4,217,329.00 $ 3,952,748.00 $ 4,042,597.00 $ 3,830,060.00
Total Liabilities and Capitalization $10,299,868.00 $10,165,461.00 $ 9,916,287.00 $ 9,747,451.00
The key to Amtrak’s future, in the words from the 2006 Strategic Initiative document,
“hinges first on a defined mission, including adequate and predictable capital funding, and
over the longer term on the emergence of competition and private sector alternatives to
Amtrak.” Specifically, the vision of management is to develop an intercity passenger rail
system. To do this, the following objectives will need to be accomplished:
• Development of passenger rail corridors based on a federal-state capital matching
program, with states serving as the developers and purchasers of competitively bid
corridor services
• Return of the Northeast Corridor infrastructure to a state of good repair and operational
reliability, with all users gradually assuming financial responsibility for their
proportionate share of operating and capital needs
• Continuation and possible addition/elimination of certain national long-distance
routes based on established performance thresholds, with a phase-in period to
allow for performance improvements and state participation where needed to meet
thresholds
• Emergence of markets for competition and private commercial participation in all
passenger rail functions and services, including outsourcing of selected functions
and competition among operators for corridor routes
Amtrak’s vision for the coming years is to:
• Deliver superior service—including continued excellence in operational safety
and security and infrastructure/asset management—while becoming more market
and customer oriented
• Serve as a catalyst for change—helping the nation’s intercity passenger rail system
achieve the long-term objectives from above
• Evolve into one of a number of competitors for passenger rail services and routes,
all positioned on equal competitive footing
Competitors
Amtrak has many competitors because they are in the business of transportation. A primary
competition that Amtrak faces is the automobile. Automobiles provide consumers with
more flexibility and generally are a faster form of transportation. The main difference is that
consumers must own a car and provide their own transportation. Beyond the automobile,
the main competition comes from Greyhound Bus Lines and airlines.
GREYHOUND Although the time required to travel using Greyhound is very similar to
that of Amtrak, passengers are likely to spend less when traveling by bus. The difference is
that the accommodations on the train tend to be more comfortable than those on the bus.