Research On Competitive Strategy Of State Grid Gansu Electric Power Company

The sustainable development of the power industry and the stable operation of the power system are the necessary conditions for economic development and social stability.However,some contradictions and problems that have accumulated over a long period of time are also increasing saliently.The structural contradictions in the power of generation and consumption are prominent.The supply of electricity in the electricity market exceeds demand.The price relationship has not been straightened out.Market-oriented pricing and trading mechanisms have not yet been formed.Electricity construction lacks of unified power planning guidance.The planning and construction of the power grid are inconsistent.The distribution of electricity and investment entity is single.The competition mechanism for the sale of electricity has not yet been established.The government's plan to regulate and maintain the industrial order according to law still needs to be improved and strengthened.A new round of the power system reform began in 2015,which clarified that the income of electric power company was verified with effective assets,gradually opened up the power distribution investment market,and introduced competitors on the sales side.At the same time,the business foundation of the State Grid Gansu Electric Power Company is still weak,the overall management level is lagging behind in the State Grid system,and compared with the new requirements under the new situation,there is still a large gap.How to improve investment efficiency and operating performance under the new situation,formulate a competitive strategy which is suitable for its own development,and enhance market competitiveness have become an important task for the State Grid Gansu Electric Power Company.This paper firstly analyzes the external environment of the power company by using the PEST analysis method to find out the opportunities and threats on the base of the situation of the Gansu electric power market and State Grid Gansu Electric Power Company.Secondly analyzes five kinds of competitive forces which are the company facing by using the Porter Five Forces model,and analyzes its competitors.Then analyzes the company's internal environment by using the resource-based view to point out the advantages and disadvantages.Based on this,the SWOT model is used to combine the opportunities,threats,advantages,and disadvantages of the power company and propose alternative strategies.Through the QSPM matrix,it is pointed out that the cost leadership strategy is the most suitable competitive strategy for the State Grid Gansu Electric Power Company.Finally puts forward the steps,methods,risk points and control methods of competitive strategy to ensure the smooth implementation of the competitive strategy.