An analysis of the diversification strategies of railway companies in Japan

In this paper, the diversification strategies of railway companies in Japan are analyzed by the method of Rumelt (1974). After reviewing previous studies and considering the application of our study, the analysis is conducted. A comparison of the results among companies reveals there is a striking difference between Japan Railways group (JR group) and private railway companies. JR group is diversifying its business, but it appears that the area they specialize in is railway business (main), or at least business with a strong connection with railways. Based on the data, an interregional comparison is conducted and the modal share and population are projected. From this comparison, it is found that the diversification strategy of each company is affected by the environment of each area in which the companies are located. The relationship between profitability and diversification is also considered, but it does not support the findings by Rumelt (1974) and other previous studies.

Graduate School of Commerce and Management, Hitotsubashi University

2010-06

English(eng)

technical report

VoR

20

Working Paper / School of Business Administration, Hitotsubashi University Business School

https://hdl.handle.net/10086/18596