The Competitive Strategy Choice Of BEIZHONG Company

Beijing BEIZHONG Steam Turbine Generator Co., Ltd. (hereinafter referred to as Beijing BEIZHONG Company) is a state-owned thermal power equipment manufacturer and its leading products are power plant steam turbines and turbo-generators with relative services. In recent years, with China's rapid economic development, energy supply situation is serious and the power shortage will exist for a period of time.The growth of total society power consumption brings good opporyunities for thermal power equipment manufacturers,such as Beijing BEIZHONG Company. Meanwhile, the state has issued policies one after another in"Eleventh Five-Year", such as"energy saving and emission reduction","keeping and promoting the large and holding or closing down the small", power structural adjustment and encouraging new energy development. Analysis about current situation is that the state will increase strength to implement above policies in"Twelfth Five-Year". Especially, in power strutural adjustment , the state indicates to give priority to hydropower development, optimize thermal power development, speed up construction of nuclear power, actively develop non-hydro renewable power, including wind power, solar power and biomass power generation. Beijing BEIZHONG Company only keeps thermal power business after separating wind power business. So facing strict national energy policies and requirements of efficiency of power generation equipment and environmental protection, if Beijing BEIZHONG Company gains an advantage in competive thermal power market, it must analize and compare macro industry environment, enterprise resource capabilities as well as competitors'advantages and disadvantages, and study and choose Beijing BEIZHONG Company's competitive strategy combined with power generation equipment industry development trends.This paper adopts the research method of combination of theory and practice with Michael ? Porter (Michael E. Porter) theoretical knowledge of enterprise competitive strategy, takes Beijing BEIZHONG Company, a power generation equipment manufacturer, as a case, analizes enterprise external evironment and enterprise internal resource capabilities with strategic analysis tool, proposes the competitive strategy suitable to the enterprise and effective measures to ensure the implementation of the competitive strategy combined with the enterprise reality. This paper is divided into five parts to discourse:The first part introduces the background of this topic, history evolution, current situation and business structure of Beijing BEIZHONG Company, and points out the major problems the company currently faces .With analysis about Beijing BEIZHONG Company's external environment, such as macro economy, product technology development and industrial policy, the second part reflects China's current demand of power equipment, introduces the overall state of the power industry and restructuring tendency of power structre, and uses Michael Porter's Five Forces Model theory to analize challenges and opportunities the company faces.In the aspects of company's technology, quality, cost and manufacturing capacity, the third part explains the company's core competence and analizes the enterprise internal resource capabilities.Through SWOT model, the fourth part summarizes the opportunities, threats , its strength and weakness the enterprise faces ,and makes competive strategies for Beijing BEIZHONG Company according to the company's development strategy: adopting differentiation strategy in market competition, embodied in differentiation of product variety and characteristics, quality differentiation, service differentiation and marketing mode differentiation.The fifth part proposes measures combined with enterprise's actural conditions to ensure the effective implementation of the competive strategies in the aspects of improving company governance structure, establishing an organizational structure adaptable to its strategies, increasing technology development, perfecting the technological innovation system, establishing differentiated marketing system, strengthening human resources management to implement talents strategy to raise competitive ability of enterprise, improving production operation mode to ensure a high level performance of the contracts, consolidating management foundation to improve management and strengthening corporate culture.