Odakyu Electric Railway Co., Ltd. - Group Management Structure Emerges in the 1990s
Group Management Structure Emerges in the 1990s
As Odakyu progressed through the 1990s, its found itself operating in a business environment whose dynamics were changing. Industry deregulation and the globalization of business, coupled with an aging population and declining birthrate, forced Odakyu's leadership to adapt to the times. As the company worked on practical matters—for instance, extending the Tama Line by 1.5 kilometers in 1990 and completing one section of multiple double tracks in 1997—it also worked on more philosophical issues. The result of management's discussion on how Odakyu could best respond to the changes surrounding it was formulated in a long-term management plan introduced in 1998. Known as the "Best Way Odakyu" plan, the approach adopted by management centered on increasing value along the company's railway lines. Perhaps the most readily obvious manifestation of Best Way Odakyu was a component of the broadly defined management plan called "Best Way Integrated Business Concept," introduced in 2001. The concept focused on taking a market-oriented approach to the various business sectors along the company's railway lines. Each sector, or enclave of constituents, had its own special market characteristics that the company tailored its services toward. Accordingly, the company divided its service area into the Shinjuku Region, a commercial business area; the Railway Line Region, an upscale residential area; and the Hakone Region, a leisure area. These three regions were subdivided, such as with the Railway Line Region, which was separated by the Setaga Region and the Tama Region. By organizing its railway lines in distinct markets, Odakyu could provide services targeted to the specific characteristics of each area.
As Odakyu moved forward under the guidance of its Best Way Odakyu plan, the company continued to expand, building on its already towering size. In 2002, the company established Odakyu Hotels and Resorts Co., Ltd. as the core entity of its hotel business. On the restaurant side of its business, a subsidiary company, Giraud Restaurant System Co. Ltd., acquired a pasta restaurant company and, together with Odakyu Restaurant System Co., opened 11 new restaurants in 2004. As the company prepared for the future, it had bold plans for its railway business, the essence of Odakyu. The company was working on the construction of a more than ten-kilometer section of multiple double tracks in the greater Tokyo area. The majority of the section was expected to open by the beginning of 2005. Looking further ahead, Odakyu planned to complete construction of multiple double tracks in all its regions by 2014.
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