RailTex Inc. (A) Harvard Case Solution & Analysis

By 1992 Railtex, Inc, acquired and operated 23 geographically separate short line railroads (feeder for larger railways) in Mexico, Canada, and especially in the United States. Founded in 1977 with $ 500,000 of capital as a railcar leasing company, the company began buying and operating a short line railroad in 1984. Since 1988, revenues grew by an average of 35% per year, up to $ 39 million in 1992, the growth rate far ahead of that of the old, mature industry railway whole. Bruce Flohr, founder, believed the company's success was largely due to its decentralized management and a focus on cost management and marketing. "Hide
by Norman A. Berg, James Weber Source: Harvard Business School 22 pages. Publication Date: September 16, 1994. Prod. #: 395033-PDF-ENG

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