Study On Zhejiang B Thermal Power Plant’s Low Cost Operation Strategy

With the influence of macroeconomic situation and electricity price policy, the pressure ofChina’s thermal power enterprises increase continually because of the electricity market、thecapital market and the coal market, the comprehensive market competitiveness goes from bad toworse, the competition is intense with each passing day, the space of business and development isdifficult to continue. Guided by the scientific outlook on development, how to seek the enterprisestrategic management model suit for its development, how to change the model of operation, howto realize the competitive advantage, so as to achieve high efficiency、high benefit and maximumvalue at a lower cost which has very important strategic significance for China’s thermal powerenterprises.The thesis begins to study according to the actual situation of Zhejiang B thermal powerplant’s low cost operation and base on the strategic management theory as the main line. To seekstrategic management model suitable for the survival and development of enterprises and to planfor Zhejiang B thermal power plant’s competitive strategy through analyzing its strategicenvironment. As the industry structure and product character……product is single、homogeneity,power generation、power supply and power using are in the same time, thus establishingZhejiang B thermal power plant’s business strategy as low cost operation strategy in order to facethe increasing severe macroeconomic situation, then fully expounded Zhejiang B thermal powerplant’s various actions to implement lower cost operation strategy. Finally, the thesis summarizesthe achievement and experience of Zhejiang B thermal power plant’s implementing low costoperation strategy, and makes the prospect for china’s thermal power plants which carry the lowcost operation strategy.The formation and development of Zhejiang B thermal power plant’s low cost operationstrategy is an inevitable result of power market competition, which is the best choice for activelyseeking cost advantage to enhance the core competitiveness of enterprises, is a strategic choice fortheir own survival and development. If the low cost operation strategy is fully implemented, it willbenefit to strengthen and improve the management of the enterprises, to establish a new costmanagement idea, to grasp the changing electric power market, and also to realize the sustainable development of enterprises. According to the operational characteristics of thermal powerenterprises, the thesis puts forward that low cost operation strategy implemented by Zhejiang Bthermal power plant is the cost leadership strategy based on safety、 efficiency、economy、environment protection、 reliable and innovation, is the innovation and development in thermalpower industry for Michael. Potter’s competition theory, is an empirical test in special monopolyindustry, it has universal guiding significance for China’s thermal power enterprises.