Research On The Internationalization Strategy Of SD Power Construction

With the increasingly saturated domestic energy market,China's electricity market has been saturated by competition and over-supply.Many Chinese power construction enterprises go abroad and enter the international market to participate in competition.SD Power Construction,founded in 1985,is the earliest group of "going out" companies.As a power construction enterprise covering thermal power,nuclear power,gas,photovoltaic,hydropower,wind power,substation,bioelectricity and other types of power station technology research and project construction,the company started in 2000 after a hard start-up period.Starting from the global market,we decided to enter the overseas market.In 2002,we signed the first EPC contract for the international power plant to undertake the project of Parlando Power Station in Nigeria.Since then,SD has competed with Germany's Siemens and Japan's Marubeni to compete in the global EPC competition.In the past 20 years,SD has successfully led the international power plant EPC in the Middle East and North Africa,and has made successful exploration in the international development.But at present,SD power construction has encountered many challenges and problems in the process of continuously promoting its internationalization strategy.On the one hand,along with the slowdown of global economic growth,regional conflicts and the rise of trade protectionism,the potential uncertainties in the Middle East and North Africa markets,which have huge potential for global energy development,are gradually increasing;on the other hand,Chinese enterprises have stepped out of the country to participate in the competition of international general contractors for power construction,leading to international competition.Power construction market competition is increasingly fierce and profits are declining.At the same time,due to the global energy restructuring,the thermal power plant construction that SD is best at is shrinking gradually.How to effectively carry out international business and avoid the challenges brought by the adjustment of energy structure has become a difficult problem to be faced and dealt with in the internationalization of SD power construction.Based on the policy of "going global",“one belt and one road” and the establishment of sub investment bank,the paper takes SD construction of China's "go global" as the research object and focuses on its internationalization strategy.Firstly,the basic concepts and types of SD power construction industry,general contracting,EPC and internationalization strategy are briefly introduced.Then,we use PEST analysis theory and Potter five force models to analyze the macro international environment and industry competition environment of the company.Through the analysis of the external environment,we find that the adjustment of global energy structure and unbalanced regional development will bring huge space for the development of energy enterprises with globalization.The gradual promotion and landing of China's enterprises has provided strong policy and financial support for the internationalization of China's enterprises.But in this process,along with the maturity of global energy technology and the increasing number of Chinese power construction enterprises going out,the homogenization competition in global energy market,especially in North Africa,is becoming more and more serious.In the face of such external competition and development environment,SD electric power construction must seize the development opportunity of "one belt and one road",and try to get rid of the barriers of low price and homogeneous competition.The article makes a SWOT analysis of SD power construction,ponder over the formulation of the strategic plan for the internationalization of SD,and put forward the current development stage of SD based on the strategic objectives and vision of leading the international power station EPC.Systematic and dynamic strategic principles,with global growth strategy,are the basic requirements for business development.Based on the advantages of SD power construction in resources and management,this paper analyses and considers the specific measures and guarantees of its internationalization strategy,and concludes that SD power construction should strengthen its own technological advantages on the basis of existing advantages,enter the high end of EPC industry chain of international power plants,and avoid the trap of low-cost competition.International Brand Promotion Adaptive Organizations,to comprehensively enhance their competitiveness in the global EPC market of power plants,expand the market area,reduce the pressure of slowing down growth;multi-dimensional international project risk assessment,reduce the project risk caused by political instability;use the international entry mode to achieve market share when layering.Steady growth,with the help of the company's EPC industry chain advantages,different entry strategies are adopted for different national markets to steadily expand their global market advantages;through building a gradient training system of advanced and complex international talents,we can further expand our own international business and compound talents advantages,which is a global growth strategy.Effective implementation provides a strong talent guarantee.The research on internationalization strategy of SD power construction has an certain reference significance for the theoretical and academic circles of strategic management,and also has a reference and guiding significance for strategic management,especially for the practice of internationalization strategy.The specific measures proposed in this paper are not only conducive to the effective implementation of SD power construction internationalization development strategy,but also can provide inspiration for the internationalization development of China's energy enterprises: only by upgrading the industry,"going out","going in" and "going up",can Chinese enterprises completely mention it and promote the competitive position.