Abstract
Japanese railroad companies continued growing by developing diversification based on the railroad enterprise. However, the diversification strategy of railroad companies reached the management limit in the 1990s. Under the long-term economic depression, Aging and a decrease in the birthrate progressed and passenger transport changed to the downward tendency. Nevertheless, since railroad investment was expanded, business results worsen and price competitiveness with JR East became weak. Futhermore, the business results of a diversification enterprise were bad compared with it of a railroad enterprise. Therefore, group management was thought as important and structural reform was carried out resolutely.
