Research On The Development Strategy For Beijing District Heating Group Co. LTD

With the rapid development of society and relentless scientific progress,every industry has been affected by massive changes in both their external and internal environments and all businesses are facing fundamental challenges as they seek to find their footing and establish long-term and comprehensive plans in order to survive in the future.The heat supplying sector in China is in a preliminary stage of transforming itself into a clean-energy industry.Winter clean-energy Heat Supplying Plan in Northern Area(2017-2021),the official paper from Central government printed in 2017,suggests that the heat supplied from clean energy in northern areas of China only accounts for 17% at present,leaving a huge room for further infrastructure reconstruction intended to provide the rest areas with heat generated by clean energy.However,there has been a difference in city development between Beijing and other northern regions in China.Thanks to the development over past couple of years,Beijing has brought into the completion of clean energy upgrading.What makes the environment even harder for the heat suppliers to progress in Beijing is that the heat supply here has exceeded the demand.In order to keep growing under such environment and make it more profitable and getting larger market share,Beijing District Heating Group Co.,LTD(hereinafter referred to as the “Group”),the largest heat supplier in China,is required urgently laying out a brand-new strategy in consideration of current market to move the Group forward.Upon a model of PEST analysis in bid to give a strategic prospect of the Group,the paper manages to provide an investigation into the setting of the heat supply sector from perspectives of government policies,technological know-how,social and economic environment.Upon the above,a model of SWOT analysis comes in the discussion around the advantages,disadvantages and opportunities of the Group and possible challenges to be faced with,and rounds up with two strategic modes developed for the Group.One strategy requires the Group to enlarge the former heat supply areas based on the current market environment;the latter is to diversify its channels to bring down the operating costs.In between,there adopts a dual innovative strategy to separate capital and human resources and run them independently.In a short-term goal,the expansion and development of areas to which the heat is supplied calls for the Group's priority.This research will help Beijing District Heating Group by allowing it to leverage its advantages and seize opportunities in the heating market as a whole,further reinforcing and strengthening its advantageous position,and ultimately achieving a higher return on investment.