Normal corporate strategic response to the decline of a product/market segment such as confronts railroads is development of more promising lines of business. Because legislation and regulation prohibit rail entry into more profitable intermodal fields, railroads have tended to move into non-transport businesses. This paper examines the two strategies adopted by rail-based holding companies with highly diversified firms concentrating on non-rail businesses and less diversified firms concentrating on their rail operations. It appraises inadequate rail returns as a prior event which led to diversification as well as examining capital consumption to learn if highly diversified firms tended to neglect railroad plant.

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  • Supplemental Notes:
    • Proceedings of the Twentieth Annual Meeting of the Transportation Research Forum, "Transportation Alternatives in a Changing Environment", held October 29-31, 1979, Drake Hotel, Chicago, Illinois.
  • Corporate Authors:

    Cross (Richard B) Company

    Oxford, Indiana,   United States  47971
  • Authors:
    • Graham, K R
  • Publication Date: 1979

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Filing Info

  • Accession Number: 00302351
  • Record Type: Publication
  • Report/Paper Numbers: Vol. 20 No. 1 Proceeding
  • Files: TRIS
  • Created Date: Dec 29 1979 12:00AM