"They thought they were in the railroad business. In reality, they were in the TRANSPORTATION business. When new forms of transportation appeared (car, bus, airplane) these companies ignored them."
Totally wrong. This paraphrase from Harvard Business Journal article was wrong when it came out, and it's wrong now... even though it's very well known.
Turns out when you do some research about the matter, that the railroad industry got screwed when large post-war federal spending programs subsidized the creation of the interstate system and the enhancement of major airports in the USA. They didn't support the railroads as much after the war, and consequently, the railroads suffered.
by karl — Jan 11
Totally wrong. This paraphrase from Harvard Business Journal article was wrong when it came out, and it's wrong now... even though it's very well known.
Turns out when you do some research about the matter, that the railroad industry got screwed when large post-war federal spending programs subsidized the creation of the interstate system and the enhancement of major airports in the USA. They didn't support the railroads as much after the war, and consequently, the railroads suffered.