Strategy Of Development Of The Company KM

With economic globalization and acceleration of internationalization of the market, the competition of companies are more and more intensive. Corporate strategic is the direction of enterprise development. It determines the direction, the goals and ways of the development of enterprises. The corporate strategy work is quite significant for the sustainable and healthy development of enterprises.In recent years, due to the scarcity of coal resources and the continued growth of coal prices, to guide rational investment and construction of the power project,and also to optimize resource configuration,the state implemented the same grid with the same price policy in the coal-fired power plants.That was, within the same grid thermal power plant implemented a uniform tariff. It resulted in a number of thermal power enterprises in large losses and the business conditions continued to deteriorate.KM was funded by H Group as a state-owned companies in2003. The first phase construction of2×300MW coal-fired units was the backbone of the power supply of Kunming load center in Yunnan Power Grid. The consturction of KM company was with great significance to adjust the power structure, to ease the power shortage in the dry season and to ensure the safety and reliablity of electricity load centers.Since2008, because the cost of power generation was not effectively divert, the KM company sunk into a loss. At the same time, the country payed high attention to environmental issues,and the wind power, hydropower, nuclear power, solar power and other clean energy developed rapidly. Yunnan Province is rich in water resources, in recent years a large number of hydropower went into operation, especially the large scale adjustable flagship hydropower.This thesis used the PEST model, Porter’s five forces model and SWOT analytical method to analyze the internal and external environment, the advantages and disadvantages of KM Company comprehensively. KM Company’s internal management is consummate and the main production index is excellent. But due to the long-term policy-related losses, lack of operating capital restricted KM Company’s development. Through this research, to change the KM company’s situation, they should main depend on the WO strategy and supplement the ST strategy.On the one hand, to reduce the cost of power generation industriously and carry out bridgehead strategy in Yunnan province, accelerate the reform of the wholesale electricity price mechanism to encourage the big consumers for electric power signed a power purchase and sale contract and fight for implementation of node tariff. Under the great opportunity of peak and valley price, to seize the opportunity to achieve a breakthrough in the tariff policy. On the other hand, give full play to existing superiority, and take advantage of the location in An’Ning industrial park,to give a foothold for KM company in the intense and changeful competitive environment and become the strong point energy (electricity, heating and steam supply) in industrial park.