The Study On Diversification Strategic Of Chongqing Jiulong Electric Power Co.,Ltd

In the four years, the Chongqing Jiulong Electric Power co.,Ltd had keep stable profit and finished the industrial arrangement of development strategy since November 2000 when the JLEP had been listed on the Shanghai Stock Exchange Market. But, the operating environment of JLEP had changed greatly in 2004 because of the Nation Electric System Reform. The small scale, unified source of profit and the great financial cost led JLEP to decrease of net profit in recent years. The JLEP's capability of sustained developing was challenged.In the paper, the external and internal factor of JLEP'developing opportunity, challenge, strength, weakness has been analysed deeply. The JLEP should make use of the external opportunity and give play to the internal strength to face the challenge and overcome the weakness. As a result, the rapid development was the unique way to solve the current difficult. Firstly, the JLEP must develop the source of energy in southwest region to enlarge the scale rapidly, at the same time, adjust the product frame suitably. The secondly, the JLEP should adopt backward integration strategy to solve the problem cause by the short supply and prices rising of coal, then developing the profit coming from coal industry to the important part of company net profit. Thirdly, the JLEP must establish the core completing power in cost controlling, resource safeguarding and financial supporting.In this paper, the major economic characteristic of industry in electric power generation, coal and electric environment protecting has been researched. The key completing way in these industry in varied period has been analysed. These researches was the base which the enterprise developing and making investment decisions in these industry. The author wish to transmit the thinking that enterprise must invest industry firstly, then invest project.