Section 1: Company and Industry Background
CSX is a rail based transportation company that carries the nation’s commodities like coal, agricultural products, merchandise, and other materials. With its headquarters in Jacksonville, FL, CSX serves 23 states across the eastern United States and parts of Canada. The 21,000 mile network of rail reaches more than 70 water ports throughout the region. CSX operates nearly 4200 locomotives that carry roughly 190,000 freight cars and containers daily. With over 31,000 employees, CSX’s 2013 revenue was just over $12 billion up from 2012’s $11.7 billion.
The railroad industry in America is divided by the Mississippi river. Union Pacific and Burlington Northern & Santa Fe dominate the west with CXS and Norfolk Southern to the east. Union Pacific is the largest railway company in the country. It encompasses 23,000 miles of track in 23 western states. Union Pacific ended 2013 with almost $22 billion in revenue. Burlington Northern & Santa Fe is the second largest railway in the country and is owned by Berkshire Hathaway with $21 billion in revenue. CSX falls in at number three and Norfolk Southern makes the list at number four. Norfolk Southern is the only real rail competitor to CSX, sharing the eastern part of the country. Norfolk Southern’s annual revenue is similar to CSX at $11 billion with around 31,000 employees.
CSX’s history dates back to the beginning of the American railroad industry, starting in 1827, with the first charter of Baltimore and Ohio Railroad Company, and through a long list of railway mergers throughout the 20 century. CSX was incorporated in 1978 under Virginia law. In 1980, with the merger of the Chessie System and Seaboard Coast Line Industries, CSX was able to connect the northern population areas with the southeastern markets. CSX expanded into the northeast with the acquisition of many key pieces of Conrail Inc., to create what we now know as CSX, a rail that serves every major market in the eastern United States.
Section 2 Market Strategy:
CSX’s market strategy is to be the most progressive and the safest railroad in America with the highest quality workplace for its employees and the best customer service for its customers. CSX has a very limited customer base and works hard to retain the existing customers. They do not use mass media to try and attract new customers; they use media to influence public opinion. In an effort to retain the existing customers and attract new ones, they work to become the transportation experts. They use that expertise and knowledge, about the products and transportation regulations, to form teams with the customers, to provide specialized shipping for each product transported. CSX strives to make the shipping process as easy and reliable as possible for its customers and retention of existing customers is number one priority for CSX.
To provide the best service, they look for and hire the best and brightest in each field and they display a commitment to the future by investing billions to improve infrastructure and equipment. These improvements allow CSX to better serve their customers by allowing for more efficient transportation of goods and commodities. Improved infrastructure, expansion of existing facilities, and the addition of new intermodal terminal are ways CSX continues to improve the productivity and service to the customers.
CSX also seeks new business through education and problem solving. CSX develops plans for new customs incorporating both rail and intermodal transport. They educate new customers about the efficiency of rail and the positive environmental impact of rail transport. CSX is leading the way in use of environmentally friendly fuels such as bio-diesel and ethanol to power trains in ways that reduce emissions and their carbon footprint.
CSX transportation services are considered by themselves and its customers to be a specialty service. The company