The Corporate Strategy For Hunan Electric Inspection Institute

The thrid-part testing instituions have innate advantages such as indepedence ofprofit, professional etc. Because that the reports of third-part testing instituions aremore objective, impartial and authorit, and the technical data released by third-partinstitutions are more trustable for traders and the public, it is becoming themainstream of the testing industry all over the world.As a thrid-part testing instituion, Hunan electrical equipment testing institute hassigned contract with CQC, which allows it to take3C mandatory certification tests oflow voltage electrical switchgears, switch and control equipments, and machineprotection devices. However, there is no region advantage for Hunan electricalequipment testing institute in mid-south china. Due to this reason, the number of newcertificaiton applicaion is decreasing year by year, which brings low profitability forthe institue and low moral for it’s staff. Neverthesless, because the teasting task issingle, the staff don’t have chance to improve creativity and test skills, that is also badfor the institue’s development. They are all the significant difficults for the institue’sfuture development.Empirical analysis is this paper’s main research method. It first reviews thetheories of corporate strategies, then analyses the the institue’s internal and externalenvironment, and finally classifies the institue’s services categories. After carefullyanalysing of these, this paper presents suggestions on business strategies andparticular actions for Hunan electrical equipment testing institute. Author argues that:the business brought by national policy could not compeletly afford the insititue’snormal operation, everworse, it might die in such a competetive industry. Hunanelectrical equipment testing institute only have to compeletly utilize its resources, getaway from the bleeding homogeneous competition, adopt differentiation strategy, andexplore new services, which are not taken by its competitors, like small and mediumsized transformer test, CB dertificate etc. Only in this way, Hunan electricalequipment testing institute can maintain the leading position in the industry.