Study On Cwp’s Competitive Strategy Of Indian Electric Power Market

With years of manufacturing experience in power plant boiler industry, CWP decided to expand its international business in 2006. Influenced by the global financial crisis, however, the international market has suffered a long-term sharp decline and CWP’s overseas business has been severely impacted. Consequently, the company focused its attention on India which both enjoyed benefits from its fastest growth in economy and suffered the pain of electricity shortage by its poorest power construction. At beginning, it reaped impressive gains by its outstanding performance in price and the superior ways of meeting customer’s needs. But the competition, based on highly homogeneous activities among competitors on Indian market, was mutually destructive, leading to wars of attrition. Since 2012, CWP has been frustrated by the inability to keep itself competitive in the race.According to the theories of Porter’s competitive strategy, this thesis will attempt to find out the resolutions for CWP by helping it establish a tailored strategy system. Firstly, it demonstrates the contradiction between the supply and demand of the domestic thermal power market, analyzes the present condition of India’s poorest power construction and the resulting boost to demand for electricity, emphasizing the importance for CWP to participate in the local competition. Secondly, it illustrates the critically external opportunities and threats through the analysis of the external environment and the research of the competitive structure of Indian market. Further more, the thesis is going to indicate the great strength and fatal weakness that strongly affect the competitive advantage of the company through the internal environment analysis of CWP by comparison with its competitors’. Based on the mentioned analyses, the unique positioning will then be created and the tailored strategy system will be put forward on the application of SWOT analysis. Finally, the specific safeguard measures will be briefly discussed at the end of the thesis.CWP is one of the representatively medium-sized manufacturing enterprises in China. Therefore, this study may provide the reference for other similar-size enterprises to develop their international business.