Beijing Gas Group Competitive Strategy

With the development of economy and after China's accession to the WTO, government has opened the market of public utilities to foreign and private investors gradually. As a result, more and more competitors have entered the market of infrastructure industry, which was occupied by the state-owned enterprises before. In 2004, Beijing government issued the regulations of operating urban infrastructure. Beijing Gas Group Co. Ltd. (BGGC), as a stated-owned enterprise, has to face the competition comes from the changes of environments.This paper introduces and analyzes the background of natural gas industry, the competitors, and the system of natural gas price, which are critical for the research on adjusting the competitive strategy of BGGC. From the analysis we may say that in the competition in Beijing's natural gas market is not fierce just because BGGC has the advantages of a great amount of investment on constructing pipeline and gas stations, which are key factors to gas companies. But to the new market, competition is becoming keen. Though the new competitors are weak in Beijing natural gas market, they have brought BGGC a lot of threat on the market outside Beijing. Now the issue of adjustment on natural gas price becomes more and more important to BGGC's development because there isn't effective method to react to the upper price changes, and the price structure in Beijing market is not fit for the future development either.As the environment has changed dramatically, it is necessary to adjust BGGC's development strategy. According to the SWOT analysis, this essay provides the direction of strategy adjustment and measures to help BGGC to win the competition with the new competitors. To win the competition, BGGC should focus on integrating the possessed market and developing the new market in and outside Beijing, stretching the industry with two directions to make more profit, changing the structure of price, and making the best use of price system. In addition, to react to the sustainable development strategy of government, DSM (Demand Side Management) is a useful method to choose. As to fundamental management, this paper provides relevant method about organization structure, financial management, human resources, and so on.