Study On The Low-cost Strategy In The Power Plant

The environment of state-owned power plants has changed due to the new successful reform of electricity system. Two actions, separating net from plants and bidding for net, have been put into force, which mark the opening of electricity area and the setting up of the market of power. There will be an intense competition among the power enterprises as a result of the break of monopoly. It is of great importance for us to analyses the situation and study the business competition strategy of power plants, because there will be a great impact on the state-owned power plants from the changed environment.By case analysis of performing low cost strategy, this article explores how a generation enterprise constructs core competition superiority facing intensive competition. Formation of core competition power is moved further in advance from project selection, design and construction, "construction is operation" philosophy is expounded, and importance of management system, model, and philosophy in modern power plant management is emphasized. In strategy implementation section, this article uses price chain for supervise strategy practice.Due to power industry's monopoly for long time, power plant operation is restricted by planning economy. At the present time, reform of electric power only moves to generation side, but grid, distribution, and sales market have not been in place, so this case analysis is a trial in an effort to customize the current market environment, and the focus is on construction and from construction to operation, especially the later emphasizes on the forehand thought. Nevertheless as electric power reform moves on, analysis and forehand thought of this article has certain instructive significance to improve power electricity market.