Research On The Competitive Pricing Strategy For Zhangping Power Plant

This paper bases on the background of the market reform of China electric industry and focuses on the research around the following topics, which are related to Zhangping Power Plant, a small electricity-generating factory, for short living and long development: What kind of competitive pricing strategy to be taken to face the brutal market competition and what long-term and short-term measures to be used.Firstly the paper makes a total narration about the procedure of the market reform of electric industry, and about the patterns and characteristics of both domestic and foreign electric markets. It emphasizes on the introduction of the traits of the electric market in Eastern China.Then basing on the analysis around the composing of power-generating cost, and the speciality of average cost and marginal cost of Zhangping Power Plant, this article brings forward the following three competitive pricing strategies: the strategy founded on marginal cost, the strategy founded on clear market share, and the strategy founded on price difference contracts. With the help of the strategies, the enterprises are expected to maximize their profit.The article makes some analysis around the present situation of Zhangping Power Plant, and puts forward some short-term and long-term countermeasures. For the small weak power plants, it is effective for short living to restain the rising of coal price, to improve inner operation and to control the costs, so that these plants will win some opportunities of realizing the extension and continuous development.