Research On Competitive Strategy Of Relay Protection Industry In State Grid

State Grid Electical Power Institute (SGEPRI), set up in1973and previously known as Institute of Automation of the Ministry of Water Resources, developed into an comprehensive research institute affiliated to affiliated to State Grid Corporation of China (SGCC).Thirty years of vigorous efforts have brought SGEPRI with research and development, scientific technology industry, testing and verification as well as technical service as its four core competence. With the rapid growth of electricity demand and rocketing heating of investment to the grid, the relay protection industry which used to be a traditional advantage, will embrace unprecedented opportunities. Meanwhile, more and more competitors are shooting up in this emerging industry and result in severe homogenization, thus will directly affect the profit margin of SGEPRI. In addition, further expansion of the market inventory also bring SGEPRI new problems about how to maintain and expand market share in this industry also raised new problems. How to deal with these negative factors and correctly handle the intense competition. A reasonable strategy for competitiveness should be developed and effectively implemented.Guided by the theory of competitive strategy, the strategic research of SGEPRI’s relay protection industry will be deployed in a logical sequence of strategic analysis, strategic choice, and strategic implementation.This dissertation had introduced the relay protection industry by focusing on historical development, current operation status and the main problems. Then, the analysis had been carried out from two aspects respectively:the external environment and internal conditions of SGEPRI’s relay protection industry.In the analysis of external environment, the PEST theory was introduced to analyze the overall industry environment of this industry; Porter’s theory of five competitive forces wad adopted to make a detailed analysis of the structure of this competitive industry; based on the EFE matrix analysis, it was concluded that the relay production industry of SGEPRI’s ability to utilize the external opportunities and evade the threats was stronger than its counterparts in the t industry at large. In the analysis of internal environment, more attention was paid to the internal key elements and value chain within the industry and IFE matrix was applied, then we drew to a conclusion that the general strategy of SGEPRI’s relay protection domain was more effective than other companies in this industry.Based on the above analysis and with its orientation and goal in mind, alternative strategies and objective evaluation of the two markets segments were developed respectively by the application of Porter’s basic strategy for competition and finalized that the differentiation strategy would be applied to the replay protection for the Ultra-high voltage as well as the intensive growth strategy would be implemented; in the low middle voltage domain, low-cost strategy and integration strategy should be carried out.Finally, the implementation of the strategy for competition was elaborated from several aspects as below:the integration of product and business, the mechanism of human resources reserve, service differentiation, corporate culture development etc, which would make sure the strategic objectives could be effectively obtained.