| Shanghai Tenglong Electric Engineering Company is a subsidiary of SMEPC Multi-operation Corporation, and an affiliated company of Shanghai Municipal Electric Power Company, engages mainly in electric engineering business. With the continuous deepening of China's power electric market restructuring, China's electric Engineering business is undergoing tremendous changes; the launch of "separation of primary and secondary activities" policy further defined electric Engineering business as secondary activity, therefore the latter has to be split from the main activity of power transmission and distribution and operate within market framework. How to earn revenue and profits without the support of primary activity, in order to survive under fierce competition is the most urgent issue Shanghai Tenglong Electric Engineering Company has to address.This paper indicates where to earn profits, how to earn profits, and how to protect profits by designing a brand-new business model for Tenglong Electric Engineering Company. The theoretical basis of this paper is business model theory and business model transform theory. It further gives a comprehensive analysis of the structure and characteristics of the electric Engineering industry value chain, of the history and current status of China's electric engineering business.This paper analyzed the external and internal business environment of Tenglong Electric Engineering Company. Basing on the analysis, this paper reveals the direction that business model transform should head to and proposes concrete measures in three perspectives of value innovation, cost structure innovation and profit protection innovation that Tenglong Engineering Company should undertake in order to achieve business model transform. |
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