Study Of Competitive Strategy Of Smart Grid Business For LN Software Corporation

With the rapid development of China’s economy, how to optimize resources consumption structure and promote contribution of electric power towards our economy so as to promote the reforming of our economy system has become one of the crucial problems. Founded in 1998, LN Software Corporation has grown up into a powerful informationization construction service providers for electric industry in China.During 16 years’development, LN Software Corporation has accumulated abundant experiences concerning technology as well as project implement, and gained great reputation based on its high-quality service for hundreds of electric power enterprises of big or medium size all over China.Setting LN Software Corporation as our research sample, this thesis analyzed its development opportunity and threats provided by its external environment as well as corporations’own advantage and disadvantage with the use of strategic analyze tools of SWOT, PEST EFEM and IFEM. It is found out that domestic economic environment has been warming up, demands for and dependent on electric power from all around economy system has become sever, industry competition is relatively low, all these factors have provided great developing opportunities for LN Software Corporation. Meanwhile, production cost for electricity power has increased, and there is no unified service standard for electric software industry has become the barrier hindering its development.In the aspect of LN Software Corporation’s internal advantage, it has splendid R&D power and sophisticated organization structure and institution system compares to its competitors. LN’s market is extremely solid, and products’reputation in the market as well as its advanced management systems of financial and human resources can give it great edge during the competition. However, LN Software Corporation has own disadvantages, such as some employees lacks of enough working enthusiasm and strategic thoughts of the long-run. Meanwhile, this corporation has relied too much on its old and inefficient strategy.Based on the result of SWOT analysis of LN Software Corporation, it is strongly recommended that differential competitive strategy can help it cultivate core competitive advantage.To be specific, differential strategy can be resolved into products design and development, operation service, human resource and marketing four parts. At last measures concerning organization structure optimize, corporation culture promotion and human capital structure upgrade have also been given in this thesis so as to guarantee differential strategy can be carried out effectively.