Study On Overseas Investment Strategy Of State Grid

As world's largest public affairs enterprise, the State Grid Corporation of China (SGCC) ranking 7th of World's Top Five Hundred, and broaden worldwide business in recently years.Earlier in 2007, the SGCC has already starting it's overseas investment and purchase business, acquired projects in Philippine, Brazil, and Portugal. By the end of June,2004, the summation of overseas investment of SGCC has closed to $3 billion, while the total amount of overseas equity investment projects has over$11 billion, and the total amounts of overseas assets has reached over $23 billion. From 2009 to 2013, the interests of SGCC's overseas investment projects has increased 309%, rose to nearly 32 billion RMB, and the rate of return on investment of 13%. According to State Grid Corp plan, by 2020, the scale of overseas power assets will achieve the company's total assets of 10%, and the international business profit contribution rate is plan to be more than 20%. "Internationalization strategy" has become one of the core strategies of the SGCC. It is a top priority strategic transformation of the SGCC to change the way of development.Brazilian electricity market has always been the focus of the SGCC's investment. At present, the investment in Brazil of SGCC has been more than$100 billion. However, the enterprise still did not make clear investment strategy for the overseas market so far, resulting in the major equipment orders in ??? has been taken by the Siemens. It is important to make clear investment strategy to make sure the market position and the direction of investment to undertake a better Investment and management activities for the SGCC.This paper will introduce the current situation of overseas investment of the SGCC,by using SWOT and PEST analysis method. While taking the Brazil investment of the SGCC as an example to analysis the current situation of the SGCC's overseas investment, investment strategy and marketing theory. It will focus on the advantages and disadvantages of opportunities and challenges faced by the SGCC in the overseas investment, to provide a theoretical basis for the SGCC overseas investment strategy, and develop marketing strategies more scientific and forward-looking for the SGCC in the overseas investment, in order to promote the development and reflect a greater advantage for the SGCC in overseas business competition, and meet the national economic development demand for energy.