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ScotRail SWOT & PESTLE Analysis

ID : 521137853| Feb 2022| 24 pages

COMPANY PROFILE -ScotRail

Business Sector :Railways

Operating Geography :Scotland, Europe

About ScotRail :

ScotRail is the brand name used for all Scottish regional and commuter rail services including cross-border services and intercity services since 1983. In 2008, it permanently became a Scottish franchised rail service, regardless of the train company operating it. Later in 2015, ScotRail franchise was awarded to Abellio, which is expected to expire in March 2022. After the expiration the ownership of the franchise will be passed on to the Scottish Government. Around 94 million passengers commute through the services of ScotRail each year. The company operates over 2,300 intercity, regional and suburban rail services per day, and has more than 340 stations, with less than 800 trains working under Scotland’s railway. It has more than 5,000 employees based across Scotland. In January 2022, ScotRail was recognized as a Top Employer in the United Kingdom.

Through technology, ScotRail is keen to achieve sustainability. It has adapted the concept of mticket by enabling its customers to download their tickets from its ScotRail app. In 2019, the company electrified some of its rail services connecting between the routes of Edinburgh and Glasgow, and Stirling, Dunblane and Alloa in order to become more energy efficient.

ScotRail’s ambition is “building the best railway Scotland’s ever had.”

ScotRail Revenue :


Euro 1036.80 million - FY ending 31st March 2020 (y-o-y growth 0.03%)
Euro 1003.50 million - FY ending 31st March 2019

Competitive Analysis of ScotRail

SWOT
PESTLE
The SWOT analysis for ScotRail is presented below in a matrix followed by the detailed analysis report:
StrengthsWeaknesses
1. Provides a wide array of services catering to customer needs
2. Operates freight and passenger trains providing 2400 train services each day
3. Provides integrated transportation services improving customer satisfaction
1. Workers strike over payment disputes can potentially dent reputation and impact business
2. Underperformance and failure to provide reliable services has impacted ScotRail’s operations
OpportunitiesThreats
1. Strategic investments in procurement of new trains and upgradation of existing trains will increase ScotRail’s operations
2. Scottish government initiatives on promoting tourism will benefit ScotRail
3. Consumers opting for high-speed rails over short haul flights
4. Strategic alliance with Network rail will enhance ScotRail’s operations
1. Transfer of operations from Abellio to Scottish government can impact ScotrRail’s operations
2. Shortage of staff and rise in labor wages will affect ScotRail’s operations
3. Fluctuating fuel prices will impact ScotRail’s costs to operate diesel trains
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of ScotRail

Strength

This section is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

1. Strategic investments in procurement of new trains and upgradation of existing trains will increase ScotRail’s operations: Over the past few years, ScotRail has invested $75 million pounds in new and upgraded trains for the country. The new trains with features like improved accessibility, better WiFi and more power sockets have delivered visible results like better services, faster journeys, and 100,000 more weekdays seats. The Class 385 electric trains would be seen on the country’s newly electrified central belt on the routes like Waverley-Glasgow, Queen Street-Cumbernauld, Waverley-North Berwick, Glasgow Central-Lanark and so on, The electrification of the busiest route between Edinburgh and Glasgow completed in 2019 has already delivered smoother, quicker and quieter journey, thereby cutting the journey time. The project also delivered 150 kilometers of new electrified railway, longer platforms to take longer trains at Polmont, Linlithgow, Croy and Falkirk High, the establishment of a new station at Edinburgh Gateway, one new depot for electric trains in the east of Edinburgh at Millerhill, etc. The refurbished High Speed Trains are now operational, connecting Scotland’s seven cities with a more comfortable experience and quicker journeys. In July 2021, it launched the Highland Explorer – carriages meant for transporting bikes and large pieces of sports equipment along the spectacular West Highland Line between Glasgow and Oban. Each carriage has 20 spaces for bikes and designated seating for 24 people. All these improvements indicate an expansion in its current operations, thereby resolving things in the areas where criticism has been pertinent- underperformance and lack of reliability. It is also going to propose a new timetable to focus on improved reliability and punctuality of services.

2. Scottish government initiatives on promoting tourism will benefit ScotRail: To help the tourism sector to recover in a sustainable way from the pandemic, tourism organizations requested funding in the first half of 2021 to promote chief visitor destinations responsibly. To help the industry, a new £3 million Destination and Marketing Fund has been administered by VisitScotland to support eligible groups to come up with strong visitor marketing campaigns, positioning Scotland as a year-round destination in the UK and Irish markets. It will have a three-tiered structure focusing on the city, regional, and national tourism groups. It constitutes a portion of the £725 million investment in the sector helping the tourism industry to recover and rebuild. Tourism is a key contributor to the Scottish economy. Playing in sync with the government initiatives in this sector, ScotRail realizes the needs of the customers to have a more authentic and personalized experience in terms of traveling. It boasts of an ideal position in offering nationwide, sustainable and connected travel, thereby providing more opportunities and accessibility to the various tourist destinations. One in five of its passengers are estimated to be visiting on day trips or overnight stays. With a vast majority being Scottish and English, its major overseas markets are concentrated in North America and France/Ireland/Germany. Scotland has one of the greatest railway journeys in the world with visitors coming to enjoy the stunning natural beauty, history and heritage as well as the bustling cities and relaxing escape. Such trips could be made even more memorable by the stations and train staff. To support responsible tourism, the rail network of Scotland has been working closely with national and local organizations, communities and other transport operators to help in promoting destinations and create more resilient and connected communities for living, working and tourism, it listens to the customers and engages with them. It also aims to further its initiatives in this sector by promoting green tourism and taking up more active steps to make rail travel the most environmentally preferred mode of transport. It provides a range of Rover tickets for visitors who wish to explore the beauty of Scotland. A better value for money could be provided with Advance tickets booked 12 weeks prior to one’s travels. With islands made open again to tourists, Rail and Sail tickets could be used to enjoy a sustainable holiday. Children can travel for just £1 return with a paying adult on a day trip. People can undertake trips to some of the most fancied destinations like Edinburgh, Aberdeen, Glasgow, Inverness, Dundee, Perth, Loch Lomond, Stirling, Fife, Orkney &Shetland, etc. with detailed itineraries and trip planning that will bring immense benefits.

The remaining section under "Opportunity" is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

Major Competitors :

  • Southern Railway
  • Chiltern Railways
  • London Midland
  • Merseyrail
  • South Western Railway
  • WCT Group Limited
  • Firstgroup PLC
  • National Express Group PLC

Major Brands :

  • Rail Cards
  • Season and Family Tickets
  • Online Ticket Booking Services
  • Check Services
  • Group travel
  • Travel Passes
  • Off peak return
  • Caledonian Sleeper Services
SWOT & PESTLE (combined)
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References used in ScotRail SWOT & PESTLE Analysis Report

1. Train Tickets | Times & Timetables | Fares in Scotland | ScotRail - https://www.ScotRail.co.uk/
2. The ScotRail Franchise and its Effect - https://www.transport.gov.scot/public-transport/rail/ScotRail-franchise/
3. Scotland’s train operator ScotRail to be nationalised - BBC News - https://www.bbc.com/news/uk-scotland-scotland-politics-56432919
4. Tourism and development | ScotRail - https://www.ScotRail.co.uk/sustainability/economic-development/tourism-and-development
5. ScotRail to move to Scottish Government ownership | Transport Scotland - https://www.transport.gov.scot/news/ScotRail-to-move-to-scottish-government-ownership/
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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ScotRail SWOT & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2022). ScotRail SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/scotrail/ [Accessed 18 May, 2022].

In-text: (SWOT & PESTLE.com, 2022)

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ScotRail SWOT and PESTLE analysis has been conducted by Ipsha Bhattacharya and reviewed by senior analysts from Barakaat Consulting.

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ScotRail SWOT & PESTLE Analysis
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