Amtrak Alert!

AMTRAK LOGOAmtrak service is disrupted due to a different transportation service. Since I have relied on Amtrak for about 4 years now, I would be worried if I lived in the New York/Boston area. While Amtrak is more of a long distance passenger service for commuters, many still rely on the service on a weekly basis. Now, because of a collision between two Metro trains in the New York/Boston area, Amtrak service through out this route is limited for an unknown amount of time. Amtrak offers transportation to areas that many other public transportation does not. Therefore, this collision has created a conflict for Amtrak that is currently out of the company’s control at this time.

Through reading Business Week’s article, “Connecticut Commuter Crash With 700 Passengers Curbs Amtrak (2),” readers are able to see that the reasoning of this crash remains unknown. While the service disruption of train transportation was of course not caused by Amtrak, the demand of their customers may stray beyond the halt of the rail line. Since the investigators of this situation are still deciding the reason for this crash, many customers may be worried that this rail line is an unsafe one to travel on. While Amtrak offers alternate routes, their service alert page mentions that those customers who feel uncomfortable to use the services are available for a refund. Therefore, the lack of demand for Amtrak goes beyond the disruption of their services. Is Amtrak under a threat due to safety of their customers?

Focusing on how the collision affected Amtrak as a company required me to think about the bottleneck in project management situations, as the term was even mentioned in the article! The Metro train accident served as a bottleneck in Amtrak being able to operate between two different locations. As discussed in class, when there is a bottleneck situation, there is a backup in the process of creating a product or continuing a service. In the case of the Metro train collision, Amtrak is currently not able to operate between New York and New Haven. Therefore, not only is the business affected financially, continuous customers of Amtrak are required to reroute their trips and may find a new means of train service. While the situation was out of Amtrak’s control, this bottleneck brings Amtrak’s quantity and efficiency to a lower level. While the train company and its customers have already been greatly affected, the article also mentions that investigations similar to this train accident take several months to come to a close. Do you think Amtrak will be affected until investigation is over? Will customers be hesitant to take this route through Amtrak until investigations are over?

As mentioned earlier, more information on this collision and its affect on Amtrak can be found here.

The Fall of Apple?!?!?

There has been tons of speculation recently about the way the most interesting company in the world, known as Apple, is headed. Stock prices fell below $400, an over 40% decline since an all time high last September. The company has not introduced a new product in over six months and it will be at least another three by the time a new one is available in the marketplace. Lastly, competition is rising as the  HTC One and Galaxy S4 are slated to be on the market soon which could lead to a decrease of sales of the iPhone. Apple will release its quarterly results next Tuesday April 23rd and the numbers are expected to fall short of Apples quarterly forecast, which will decrease the stock price even more.

While there is cause for concern, as with any major corporation, Apple does have many thing to look forward to with one of them being customer loyalty, great management, and near future product releases.

There is not a consumer base out there that are as loyal as Apple consumers. An easy way to prove this is look around any DePaul classroom. First of, the vast majority of students have some a Macbook as their laptop. A greater portion of these students also have an iPhone as their phone. Finally, I would bet that these students also listen to iPods on their morning commutes to school or work. To truly find a company that has better customer loyalty would be a task in itself.

Another reason that Apple will rebound is because they have great management. Many people say that Steve Jobs made the company what it is today. That is true in a way but the support and management around Jobs had to be up to his level as he could not control every part of the company. Apple did not become one of the most valuable companies in the world because of one person.

Many investors proclaim that the reason the stock price is falling is because Apple has not released any new products. That is about to change in the upcoming months as there are speculations the new version of the iPhone is slated to come  out late this summer. When Apple states the new iPhone release date, that alone will boost stock price. As shown by the image to the right, stock prices increase significantly when a product is released.

 

 

 

As we know, Apple has been one of the most dominating and valuable companies in the world. Recently stock prices have dropped over 40% and sales are predicted to fall short of the quarterly forecast. Many loyal consumers are waiting for the next big thing from Apple but the company is not delivering. What do you think about Apples recent struggles? Has Apple really lost its touch in the market as competition is constantly increasing or will the release of the new iPhone restore Apples value and investor confidence in the company?

 

Sources

http://theweek.com/article/index/242933/apples-stock-price-reaches-new-low-why-are-investors-so-jittery

http://www.forbes.com/sites/gregsatell/2013/04/17/whats-going-on-with-apples-stock/

http://www.pcadvisor.co.uk/news/mobile-phone/3436742/iphone-6-release-date/

http://www.forbes.com/sites/rogerdooley/2012/07/17/apple-enemy/