A Research On The Strategy Of Shanghai Electric Power Generation Group For Marketing Power Plant Service In India

Shanghai Electric Power Generation Group(SECPG) belongs to the electric power equipment manufacturing industry, and mainly provides coal fire thermal power generation equipments to the domestic and foreign customers. Regarding power plant service business in Indian market, SECPG mainly provides service of operation, maintenance, modification, technology consulting and provision of spare parts.Because domestic power companies have strong power plant operation and maintenance skills, domestic power equipment manufacturing enterprises have not developed good skills of service provision. In recent years, with new project being completed in the foreign market, the lack of service ability increasingly becomes a bottleneck for SECPG to expand foreign market, especially in India. Shanghai electric power group adjust the strategy by establishing a service company in October 2011 and the Indian office in early 2012. Due to the huge profits, Engineering company, other Chinese electric maintenance companies, foreign enterprises in India and Chinese domestic trade company were all attracted to the India market. Strategic questions that SECPG face include how SECPG should respond to these challenges, what advantages SECPG has in the competition, what capacities SECPG needs to develop to win in the India service market. This paper is aimed to shed lights on these questions.The article first described the situation of SECPG in Indian market. Then it analyzes the strengths of SECPG in the market of service provision. Third, the Potter "Five Forces Model" is used to analysis the competition situation in India thermal power service market, which includes the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products or services, and the existing competition. At last, the article recommend methods for SECPG to enhance competitive ability and expand the service market in India based on the 4R analysis, which include four aspects of Relevance, Reaction, Relationship and Reward.