The Research On Development Strategy Of Power Generation Enterprises

A company's strategy consists of a set of competitive moves and business approaches that management is employing to run the company. A state-authorized investment entity and a state-holding corporation, China Five-Power Groups (CFPG) are the major state-owned enterprises approved by the State Council, whose business scope of CFPG mainly covers the following areas: energy-related investment, construction, operation and management. Since the establishment of CHNG in 1985 and up to 2003, CFPG have made remarkable contributions to the national economy and to the reform and development of the electric power industry in China. Today, energy market in China is huge and rivalry among competing energy enterprises is intensified. Now high-raking managers of CFPG are considering how to maintain company's competitive advantage as an industrial leader and how to locate new profit-making points. For achieving CFPG's objectives, it is of paramount importance for CFPG to craft a corporate strategy and the author puts forward the following steps.Firstly, making an industry and competitive situation analysis of CFPG by using a key analytical tool (Porter's Five Forces Model) to identify main sources of competitive forces and strengths of these forces. Representing the first letters in Strength, Weakness,Opportunities and Threats, the SWOT Analysis is a useful tool to evaluate company resources and competitive capabilities. Through SWOT analysis, the author identifies CFPG's Strength Weakness, Opportunities and Threats in addition to CHNG's finance conditions. Secondly, the author formulates CFPG's corporate strategy of power generation and development by using such tools as SWOT Comparison method and GE's nine-cell matrix. Finally, the author makes the competitive strategy of the XiangFan Power Company(XFPC). the author discusses how to execute corporate's strategy by adopting the Balanced Score Card method.