City Gas Enterprise Competitive Strategy Analysis

The government allows the private capital investment and management of various types of capital nature of city infrastructure, with it gradually opening access restrictions in the public utilities. Early in2001, the government of Chengdu City declared "Chengdu Government franchising management regulations", reducing the city infrastructure investment threshold. Among them, Chengdu city gas industry was one of the earliest identified competitive industries. After nearly one decade’s development, now it has emerged booming situation, all kinds of capital have blossom everywhere, resulting in excessive competition, the homogenization of competition and other issues.The writer used CDGAS as the breakthrough point to analyses the entire city gas industry background, existing competition status and competitors. The conclusion is:The CDGAS possesses the characteristics of universality. On the one hand, these enterprises generally signed a franchise agreement with the original government, and in the past, enterprises focused on the development of franchise area, and they didn’t take the surrounding market seriously. Through development of a few years, they discovered that there was no users to develop in the original business concession area, feeder costs decreased year by year, and the surrounding market had been nibbled by competitors. The new problem they face is how to acquire the new market; on the other hand, the enterprise’s development strength was insufficient, how to adjust its business model, to explore new profit growth point is important. In addition, city gas enterprises make adjustments in a passive way.The changes of economic environment and policy have led to increased competition, which offered a challenge to the CDGAS. Based on the SWOT analysis, this paper first proposed that customers be demanded to manage city gas application. It also proposes the CDGAS’s future direction, competition strategy stage goal and the measures to achieve a goal.