A Research On GH Group Strategic Transformation During The New Normal Period

The pattern of global economy changes dramatically as well as the development of domestic economy meet the bottleneck, causing our country entered economy stage of "the New Normal" which nuclear connotation is the growth motility changing from factor-driven and investment-driven to innovation-driven. All the evidence has turned out that energy demand and consumption is also showing the New Normal. Under the New Normal, the demand for energy products of electricity, coal, and fossil oil has declined; both coal and electricity have been surplus. Even though the electricity industry has developed to the best of times, its development space would be very limited and more competitive in the future. In order to achieve healthy and sustainable development, the electricity industry must make some strategy transition to adapt and lead the New Normal,.GH Company, which established in 1956, is a first-class qualified enterprise of Power engineering construction general contracting. With years go by, it has developed into a comprehensive company of power engineering construction general contracting. In general, GH Company has the scale advantage of scale electricity program, survey and design, thermal power construction and other fields. However, at present, company’s contract and operation revenue mainly come from relatively low-end labor intensive projects, the competency of large general contract projects should be improved, the development level is uneven, industrial strength has not been shown fully. The company is faced with huge pressure from transformation and upgrading.In this paper, we use GH Group as a case example, guiding by strategy transition and strategy management theory:Firstly, we make field investigation to obtain the information including business process, personnel management, financial management, technical feature, enterprise culture and other internal information as well as macroeconomic environment, policy factors, industry situation, the whole market competitive environment and other external information. Secondly, to make an overall judgment of competitive source and strategy direction selection based on SWOT analysis and Michael Porter’s Five Forces Model. Finally, to come up with a whole transformation and development path and strategic target of each stage in the New Normal environment.Through the deep analysis and research of this company, we try to design a strategy transition model about power construction enterprise under the New Normal period. The value of this paper is in both practice and theory. First of all, we put forward the direction, measure and suggestions of strategy transition based on the case of GH Company and real data, which contribute to solve practical problem of the company currently as well as provide reference to other domestic energy companies. Secondly, this paper discovers the strategy transition problem of power construction enterprises under the environment of New Normal with a unique perspective, and comes up with a strategy transition conceptualization model of this type enterprise, which expands and enriches strategic management and strategy transformation to a certain degree.