Research On Development Strategy Of Jinan Zhiheng

China is now in the intermediate stage of the Modernization&urbanization. The demand for electricity grows continuously and steadily which drives the power equipment market developing rapidly&continuously for a long time. Since distribution electric equipment manufacturing has the lowest entry barriers among the entire power equipments market, the amount of manufacturers increased rapidly in recent years and then the competition is fiercer than ever. The productivity is badly superfluous.At present, the distribution power equipment industry development has been in the mature stage. The market is in perfect competition stage. With the products becoming mature, the products of different enterprises are similar in performance&quality. The competition is mainly focusing on price, service, marketing, enterprise scale and popularity. Recently, most of enterprises are short of orders. The profit is very low or even loss. Enterprise annexation and reorganization happen frequently within the industry. Most enterprises are facing with the problems of how to develop.Jinan Jibian Zhiheng Electrical Equipment Co., Ltd.(hereinafter referred to as Zhiheng) whose scale is moderate in its industry, was established in1995, manufacturing electrical equipments. Zhiheng manufactures four categories of products, including dry-type transformers, oil-immersed transformer, box-type substation and high/low-voltage switchgear.In this paper, PEST, Five-force-model, SWOT and four quadrant analysis system were used to analyze the macro-environmental, industry environment, advantages and disadvantages, product portfolio analysis of Zhiheng on the basis of expounding strategic management theory, and find out the strengths, weaknesses, opportunities and threats, position in transformer industry, prospects of different products, distribution characteristics of customers.After those analysis, the development strategy of Zhiheng was put forward:to stop producing box-type substation and high/low-voltage switch cabinet products, to focus on the company’s advantaged products dry-type transformers and oil-immersed transformers, to implement cost-leadership strategy, to enhance customer satisfaction through high quality services, to increase marketing efforts to get large scale&long term customers, to improve market share and become the leading enterprise of distribution transformers.At the same time, development targets during the twelfth five-year plan is set out which consist of two stages, the market development and enterprise operation management. Optimizing technical designing, reducing the raw materials purchasing price, improving lean manufacturing, enhancing market development and the publicity input, strengthen human resources training and performance evaluation. Those safeguards will make the strategies effective.