“Why fly when we could be taking a bullet train?” Is what individuals all over China are asking themselves every day. Nearly five years ago when China‘s high speed trains were debating launching their business they had to take into account trying to enter an already competitive travel market. Although, with over-population being an emerging problem in China it was a perfect opportunity for high speed trains to enter the market. The train companies are offering what the public wants; people are impatient and want to get from point A to point B quickly. No one wants to wait in a security line up at the airport, neither do they want to drive when traffic has been constantly increasing at 28 percent every year for the past few years. One of the reasons for Chinas economic growth is supposedly the link to enhanced traveling for business and domestic travellers. In conclusion, as mentioned in porters five forces; high speed trains were a threat of new entry to the travel market. They are most definitely a threat of substitution to domestic flights and motor vehicle transportation (now the leading method of transportation). With the vast and large population there is a very competitive market in China.
New bullet train undergoing test on December 24, 2009