GuangShen Railway's Building Of The Fourth Line

The Chinese Railway occupies quite an important status in the country's transportation system. However, the development of other modes of transportation such as Highway, Civil Aviation, etc. cut down the market share of Railway and stimulate the competition within this industry. With the transforming of Planned Economy System into Market Economy System, the competition in the transportation Industry becomes fiercer and fiercer. The industry will gradually lead its way to Buy's Market from Seller's Market.With the case that Guangshen railway builds its fourth line, this article makes an objective evaluation of the investment feasibility. Firstly, the company's strategic situation, including external factors(macro situation, general state of industry) and internal factors, are analysized with five Force Models of competition and SWOT model, etc. Then, the article uses financial analysis tool to draw the conclusion that the forth line of Guangshen Railway is a fault investment decision. Finally, several measures and suggestions are brought out for the sustainable development of Guangshen Railway in the future.