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Published by: Institute for Management Development (IMD)
Originally published in: 1998
Version: 08.12.2003
Length: 12 pages
Data source: Field research

Abstract

This case takes us back to 1988 when Swedish State Railways (SJ) undertook a number of changes that would eventually transform it from a rather bureaucratic, traditional government agency into a modern, competitive business. By 1996, SJ was one of the few European railways making a profit. This was in great part thanks to its high-speed X2000 train, launched in the early 1990s. Striving to increase its market share and maximise profitability, SJ competed against the airlines by using the same method most modern airlines use: a yield management system with varying fares. The case describes how and with what results this system was implemented.
Location:
Industry:
Size:
8,000 employees
Other setting(s):
1997

About

Abstract

This case takes us back to 1988 when Swedish State Railways (SJ) undertook a number of changes that would eventually transform it from a rather bureaucratic, traditional government agency into a modern, competitive business. By 1996, SJ was one of the few European railways making a profit. This was in great part thanks to its high-speed X2000 train, launched in the early 1990s. Striving to increase its market share and maximise profitability, SJ competed against the airlines by using the same method most modern airlines use: a yield management system with varying fares. The case describes how and with what results this system was implemented.

Settings

Location:
Industry:
Size:
8,000 employees
Other setting(s):
1997

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