| China’ s economy has been developing at a high speed since initiation of opening up policy.In the meanwhile,the high-pollution and high energy-consumption industry has expanded tremendously.Due to such,the excess manufacturing problem occurs to some industries in recent years and the environmental issue poses serious problems to China.The report by the Nineteenth CPC National Conference raised the concept of "Green Development",with which China introduced a series of industry guidance policies with relevant regulations to take strict control of the excess manufacturing capacity.Of which,power industry is made on top of the agenda.China’s power construction company thus encountered a sharp market shrinkage as a result."Going-out" becomes the only way that China power industry could survive.While the fact that the B&R initiative at the state level is positively responded by the international community which brings new opportunities to China’s power industry,in the meanwhile it poses serious challenge to the internationalization capability of China’s power companies.YH Power Corporation is a private company.Since setting foot in the international market in 2006,YH has undertaken tens of medium&small size power plants over a dozen of countries,leaving its footprint all across Asia,Europe and Africa.However,in recent years YH confronts a bottleneck in its development due to inferior management concept and immature internationalization levels.Under such circumstances,this paper analyses the corporate’s internal&external situation,opportunities&threats,resources and capabilities by applying various strategy management models based on strategy and internationalization strategy theory.The corporate’s competitive strength is identified.This paper frames the internationalization strategy,target and routes i.e.based on Niche strategy,to avoid direct competition with strong power giants,focusing on the rigid power demand across B&R countries,taking opportunity of the second hand power plants released by the domestic production-upgrading policies,interfacing domestic and overseas market,building a three pillar business structure by specializing at second hand power plant EPC contracting,new energy building and power plant maintenance,and to establish competitive superiority by providing "cost-efficient,one-stop and made-to-order" products to strive for the leapfrog development and become a first-class power construction company in the field of medium-small size power plants construction.In order to ensure realization of above internationalization strategy target,Asia,Africa and Latin America was chosen as the main market based on overall assessment of the regional economic development outlook,market competition scenario and corporate capabilities.The strategy is broken down into three steps,i.e.2020-2025,2025-2030 and 2030 onwards.Management assurance policies are designed in terms of corporate culture,organization support,HR,processed management and all-risk management capability.This paper is of positive significance in frame working an internationalization strategy for YH.Analysis on the factors that medium-small enterprises shall consider while making internationalization strategy may help those other similar companies in making of its own internationalization strategy. |
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