Dongfang Municipal Electrical Power Company

DongFang Municipal Electrical Power Company is one of the most successful power companies in China. The development in the past decades has made it the power company with the largest city power supply system, has the most customers and the outstanding financial achievements.With the progress of market economy reform in China, the company is facing to new opportunities and hopes as well as difficulties and challenges. The development of electric power industry has changed the situation of power shortage, and there is power supply over plus in some area. The reform aimed at anti-monopoly and introduction of competition is now on schedule with the promotion of the government. The company has established a general aim to become a first class power company of the world through the electric industry reform. To realize the aim, the company must have a development strategy.In the first part of this paper, many things and factors are presented that must be considered by the leaders of the company to make the development strategy, for letting the readers of the article practice making decisions in the point of view of strategy management. In the later part, based on the analyzing the internal and external environment of the company, a new development of the company is put forward.Several analysis methods are used as follow in the paper.External Condition Method is adopted to analyze the external environment the company is facing, including economic, social, political and technical factors. The Five-Forces Model of competition is a key analytical tool to study various competitive factors.Value Chain Method is a main tool while analyzing the internal condition of the company. The main weaknesses are found out through detailed study of the composition of the present value chain, its cost and its efficiency.External Factor Evaluation Matrix and Internal Factor Evaluation Matrix are used while studying the external and internal factors.On the basis of the analysis of the external and internal conditions, it is tried to bring forward the development strategy for the company.