Research On The Development Strategy Of DG Group

The power system converts primary energy into electricity and supplies it to thousands of homes through the grid.Power equipment manufacturing is not only an important part of the power grid’s core business,but also a focus of "made in China 2025".At present,the gap between China’s power equipment manufacturers and the international giants in the high-end manufacturing market is large.Homogenization competition is serious.In recent years,new demands and new technologies have emerged in the electric equipment manufacturing industry.This leads to more fierce competition among enterprises,and the industry tends to integrate resources and restructure industries.DG group is an electric equipment manufacturing enterprise,which established in May 2012.Since the establishment of DG group,its comprehensive strength has been enhanced year by year due to its competitive advantages in policies of State Grid Corporation of China,market and resources.However,in recent years,with increasingly fierce market competition,rapid technological change and increasingly complex market changes,the traditional development path is getting narrower and narrower.As a traditional power equipment manufacturing enterprise,DG group’s main business is"primary equipment for power transmission and transformation".DG group is facing with the problems of industrial overcapacity,insufficient competitiveness of enterprises in the high-end market and the inability of emerging industries to form scale in a short term.Compared with the requirements of high-quality development,DG group is confronted with operational crisis due to the shortage of talents,insufficient collaboration ability and poor innovation ability.In such a severe situation,DG group must have a clear understanding of the new situation,strengthen the top-level design,and plan for future development in advance.Only in this way can the enterprise smoothly achieve industrial reform,business transformation,scale expansion and quality improvement.In 2019,State Grid Corporation of China proposed the strategy of "three types and two networks",which provides direction guidance for the transformation and upgrading of DG group.A variety of methods are used to do this research.This paper analyzes the external environment of DG group through PEST,Potter five force model and EFE matrix,summarizes the resources,capabilities and IFE matrix of DG group,and expounds the internal conditions of DG group.The management status of DG group is evaluated,and the advantages,disadvantages,opportunities and threats of DG group are analyzed.This paper also summarizes the development process and current situation of DG group since its establishment in 2012.We put forward the enterprise mission of DG group through the development concept.Combined with DG group’s development concept,corporate mission and values,I use SWOT qualitative analysis and QSPM matrix quantitative analysis to help DG group to choose a diversified development strategy,and put forward the strategic goal of DG group to become a world-class power equipment manufacturer and system service provider.I also puts forward the strategic implementation measures from promoting the diversified development of the industry,establishing an efficient and collaborative marketing service system,building a smart supply chain management mechanism,and Strengthen department business collaboration.And puts forward DG group’s strategic safeguard measures from the perspective of human resources,financial control,information and enterprise culture.All of these make the research results of this paper more instructive and operable.According to the actual situation of DG group,combined with the latest theory and case study of strategic management,this paper can enrich the theoretical application and practical guidance of strategic design.At the same time,the construction of the "three type and two network" of the State Grid Corporation is a complex systematic project,and the strategic path is not yet fully clear.As a subsidiary of power equipment manufacturing industry of State Grid Corporation of China,DG group carried out the research on development strategy under the background of "three types and two networks" at the first time,will promoted the research on the theory of "three types and two networks",and also promoted the research on the strategy of State Grid Corporation of China.At the same time,this study is of great significance to the high-quality development of DG group,to the leadership decision-making of DG group,and to the strategic formulation,selection and implementation of other power equipment manufacturing enterprises.