The Research On Shanghai Electric Power Generation Group For Strategy During Transformation Period

The power generation equipment industry is the foundation of the powerindustry, which is closely related to the nation development and people’sdaily life. In the past decades, the soaring economy of China leads to abooming period of China’s power equipment suppliers, With its excellenthuman resources of more than12000employees, Shanghai Electric PowerGeneration Group (SEPG) has rapidly involved in world economy also withits sophisticated equipment resources and advanced international businessmanagement and operation modes. Since2004, SECPG has kept first rank inthe world market in aspects of annual production capacity, annual salesturnover and contract orders. Its EPC turnkey business has ascended intoworld class and its service business also has come to the forefront in theworld.However, since the break-out of the financial crisis, China has witnesseda dramatic drop of export, because of which small and middle size industrieskeep shutting down and the electricity demand seize the pace of increase accordingly. The power plants slow down the building of new power plants,the power equipment market is rapidly transferred into a buyer’s market froma seller’s market. Meanwhile, under the guidance of government policy, thepower structure is expected to have a great change, with more new energylike wind power and nuclear power and less fossil power. Since the fossilpower equipment contributes most of its profit, SEPG is facing a criticalperiod in the future. Are there opportunities in this saturated market? Howcan SEPG make a strategic move to continue its prosperity when the fossilmarket collapses? And how can the strategy be effectively implemented?With these questions, this article is subject to research the internal andexternal environment, to generate a strategy according to the environment, inorder to provide a reference to the decision making in SEPG’s strategyprocess.The article evaluates the strength of SEPG by taking researches on theinternal environment analysis, and then analyzes the external environmentwith PEST model and predicts the market trend. By combining the customerand competitor analysis, the article tries to give a complete view of theinternal and external environment. At last, the article suggests a generalstrategy during the transfer period after the SWOT analysis and the BCGmatrix analysis..The general strategy of SEPG is: Innovation Driven, Development ModeTransferred and Starting from Beginning. Holding the two breaking-throughpoint(gas turbine and nuclear power) and make four major change in terms ofproduct, technology, Internationality and core business. The implementationmethod will be designed according to the actual situation of the group, regarding investment management, human resources management andtechnical innovation.