Analysis On The Development Strategy Of China Yangtze Power Co., Ltd.

Since the beginning of the 21st century, our country's national economy has been growing at a high speed, and our electric power construction has also made further progress. By the end of 2007, the total installed capacity of our country's power generation had reached 700 GW. As a state-owned stock controlling listed company, China Yangtze Power Co., Ltd(.hereafter called " CYPC " for short) came into being at the god-given development opportunity and has been keeping a rapid growth. In the five years, the installed capacity of hydropower generation in the charge of the Company exceeded 17,000 MW, thus, the Company has become the largest state-owned stock controlling listed company of hydropower generation in China so far, and built up a very good image as a blue-chip corporation in the industry of hydropower generation.Along with the further development of our country's national economy and the continual deep-going of the system reform in the electric power industry, the central government has issued many documents, such as Management Method of Enterprise Development Strategic Planning, Middle and Long-term Development Program of Renewable Energy Source and so on, so, CYPC is faced with more chances and challenges in its future development. This article chiefly studies CYPC's development strategy, and suggests a reasonable positioning of the Company's development strategy. In the research on the development strategy, it has been chiefly used such methods as the PEST macro method of environmental analysis for strategic management, the SWOT analytical method, the Boston matrix, the Five-force model and so on. By analysis of the external environment, namely the macro environment and the environment of the power sector, it is concluded that Chinese economical development is still at the stage of high-speed growth, and its demand for electric power will keep growing. By analysis of the internal condition and the environment, taking CYPC's main work, hydroelectric power products, as the cut-in point, we have carried out a systematic research on CYPC, done strategic analysis and strategic positioning for the Company, and finally determined that the Company should adopt a strategy characterized by fast growth. That is, we should greatly develop waterpower as our main undertaking, do some purchasing and annexing of fine assets in thermal power and nuclear power, make great efforts in development of renewable energy sources such as wind electric power generation, biomass electric power generation, solar energy power generation and so on, keep improving the product structure, improve the capital operation, and enhance the Company's five major competitive powers.