A Study Of KAIDI Water Service Co., Ltd About Business Adjustment

Water is a basic natural resource and a foundation for sustainable social development. China is bound to take advantage of limited water resource with high efficiency and at low cost, so it is necessary to implement a market-oriented operation. KD Water service Co.,Ltd(KD) is a company engaged in environmental protection and water treatment, and its main business is treatment of chemical water from power plant. As the thermal power is restricted seriously by the coal industry and the state attaches much importance to the development of Water supply, KD took sewage treatment as a breakthrough to enter into China's water industry officially in 2004.This article, foremost from the industry background , studies the situation of such four aspects as Industry characteristics,current situation,competition landscape and the marketing environment of the water industry and comes up with a conclusion that water industry has a broad development prospect and a huge development space.. Then, it briefly analyses that the development space of thermal power industry in which KD's traditional business exists will be progressively compressed by some clean energy industries e.g. nuclear power industry. By comparing the long run development of both industries, it also analyzes the necessity and possibility for KD Company to make a business adjustment. Thirdly, it focuses on what kind of opportunities the fast development of water industry would bring to the companies on the water industry chain, particularly on the opportunities and challenges met by some engineering companies who have a technique background such as KD Company, after coming into water industry. It also gives advices on adjusting business of KD, and uses system analyzing method and Boston Matrix Analysis to analyze the main businesses of KD, and position it in the Boston Matrix. Based on which, it gives advices and implement schemes on how to distribute resources reasonably among different business as well as how to select different business as the "cash caw" business at different stages for the company. Finally, the article gives advices on practical resolving schemes to solve all kinds of problems currently exist in KD company, to decrease the risks happened in strategic adjustments for the main-business of the company and thus realize a long-term development for KD.