ABB Traction Inc.

How Should ABB Market Themselves?

The Decision is ABB facing

ABB Traction Inc.

-American Made

-Experience

Worked with MTA, NJ Transit

History prior to merger

-Largest company

-Experience with the X2000

-Inexpensive

$13-20 million

Comments

Questions

Concerns

ABB Traction Inc's Philosophy

Alexander Maleski

Larissa Stefanyszyn

Olivia DiPasquale

Nicole Corcoran

Jessica Tischer

Eric Liszewski

“ABB offers a comprehensive range of products and services to the railway industry and strives to be at the forefront of technology in all aspects of its processes and products. The group has a long and consistent record of investment in research and development.”

The Relationship ABB is Seeking With Amtrak

Longterm B2B Supply Relationship with option for expansion

"Amtrak president W. Graham Talor [was] looking for a long-term relationship with a supplier of equipment that could satisfy needs of the entire Metroliner route along the Northeast Corridor."

Struggled to connect with a global economy because they were so local

Working on local high speed line trains versus expanding globally to provide products for needs other than local high speed line trains

Other companies were much larger than ABB

Larger companies lose a local focus

ABB maintains a local focus while still being global by being aware of the needs of the market.

Contradiction was and always will be a working improvement for ABB Traction.

Marketing Alternatives

Major competitors for Amtrak contract

Why ABB is a good fit for Amtrak

Internal and external characteristics that make ABB a good fit with Amtrak

Strengths

Previously worked with Amtrak

NY Headquarters

Works globally and locally

X2000

Weaknesses

Air travel is preferred

Costly

Internal

1. ABB headquarters

2. ABB is the largest supplier of electricity & robots, process automation systems, locomotives and air pollution equipment in the world

3. ABB has “a global perspective and deep local roots”

4. ABB has merged with and acquired a large number of competitors (70 companies)

5. ABB created a product before for another international market and successfully innovated the railroad system

Siemens Transportation System (STS)

GEC Alsthom

Morrison Knudsen (MK)

Bombardier

Opportunities

Chance for partnership with big name company

Gain larger percentage of travel market share

Threats

Customer Relationship Management

Amp up B2B marketing to enhance relationship with Amtrak

Utilize unconventional marketing techniques to get attention

-Advertising

Incorporate robotics factor

Airlines

Rail industry competitors

External

1. ABB works in a competitive environment were it is common practice to closely work with competitors

2. ABB has acquired 70 competitors in its field, which helped it become a major global player

3. Competition in this case down to three (Siemens Transportation Systems, GEC Alsthom, Morrison Knudsen)

Conclusion

ABB is already the top player in the electricity and locomotive industry

ABB has a strong connection with Europe and has successfully completed a similar project in Sweden before

Fulfills Amtrak’s spec of manufacturing in the US

ABB would be a great fit for the project