Union Pacific Corporation SWOT & PESTLE Analysis

Strength

1. One of America's most recognized and reliable company: Union Pacific Railroad is the principal operating company of Union Pacific Corporation and it is one of America's most recognized companies. Union Pacific Railroad connects 23 states in the western two-thirds of the United states by rail, providing a critical link in the global supply chain. In the past decade (2010-2019) UNP has invested approximately $35 billion in its network and operations to support America's transportation infrastructure. Union Pacific provides value to its roughly 10,000 customers by delivering products in a safe, reliable, fuel-efficient and environmentally responsible manner. Moreover, Union Pacific Railroad offers the second largest Railroad system in the United States after its major rival, BNSF as of 2020.

2. Strongest franchise in North America, backed by series of mergers and acquisitions: The Union Pacific Corporation has developed a robust portfolio of railways with the acquisition of the Missouri Pacific Railroad which incorporated the Missouri–Kansas–Texas Railroad, the Chicago and North Western Transportation Company, the Western Pacific Railroad, the Denver and Rio Grande Western Railroad, the St. Louis Southwestern Railway, the SPCSL Corporation, and the Southern Pacific Transportation Company. Except for the Southern Pacific Transportation Company, all railroads were merged into the former form of the Union Pacific Railroad. As part of the UP-SP merger, which included the merging of the trio, Denver and Rio Grande Western Railroad, the St. Louis Southwestern Railway, and the SPCSL Corporation into the previous form of the Union Pacific Railroad, the Union Pacific Corporation merged the previous form of the Union Pacific Railroad into the Southern Pacific Transportation Company and renamed the Southern Pacific Transportation Company to the current form of the Union Pacific Railroad. Union Pacific pays tribute to those railroads, and the generations of men and women who helped to build a great nation, and the basis for the company's future.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

1. Investments in infrastructure driving social progress: The railroad business is dependent upon overall state and local economic development along its routes. A high level of infrastructure and social development is thus a positive factor for the industry. Union Pacific also plays a role in the economic development of a region as it creates employment opportunities and supply chains along its operational routes. Capital investments by the company lead to the building of a sustainable rail network that is capable of promoting economic growth in the long term. With movement of freight in Texas expected to more than double by 2045, with volumes going up to 4 billion tons from the current 2.2 billion tons, it has become very necessary for the state to remain economically competitive. This can be achieved through the development of a better rail system which will be able to take over some of the load handled by the highway system. The company’s plans to construct a $550 million rail yard in Texas, is thus perfectly timed to handle the higher expected volumes. This investment is also notable as being the largest capital investment in a single facility made by the company in its 155-year history.

Technological

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Legal

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Environmental

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