Research On Competitive Strategy Of RY Biomass Company

In order to save energy and improve the ecological environment,national policies and regulations are beneficial to the development of biomass power generation industry,biomsss energy ushered in a period of rapid development.During the 13th Five-Year Plan period,biomass power generation projects were put into operation at an annual growth rate of 19.9%.By the end of 2020,the total capacity of biomass power generation units only burning straw and branches reached 13.3 million kilowatts,and maintained a steady growth momentum.However,with the sharp increase in the number of enterprises in biomass power generation industry,Competition among businesses is also growing,the state is not paying its subsidized electricity bills on time,biomass generator set grid electricity settlement monthly according to coal unit benchmark price,enterprise survival;planning loopholes,some areas biomass project layout is too concentrated,fuel market competition,high fuel cost;2020,the new biomass power generation industry central financial subsidies has become settled,insufficient local financial support,For agricultural and forestry biomass power generation enterprises,it increases the burden of enterprises.In the face of the difficult situation,where should the biomass power generation industry go,how to climb the slope and overcome the hurdle according to its own situation,grasp the current situation,combine its own advantages,reduce disadvantages,make full use of external favorable opportunities,overcome difficulties,get rid of the difficulties of survival,Make the enterprise develop in the long run,Enterprises have come to the critical point of developing competitive strategy.Based on the above factors,this article to RY company as the research target,through access to books and strategic management theory at home and abroad research achievements about the competitive strategy of academic journals,etc.,through newspapers and network collect relevant biomass the national industrial policy,industry development trend of the enterprise,in view of the enterprise internal and external environmental factors by using PEST analysis,porter five model,Use value chain tool research competition advantage,infiltrate into the whole process of enterprise production and operation,find out the influence of changes in the cost of enterprise key link,the SWOT analysis tool comprehensive analysis the strengths,weaknesses,opportunities and threats of the enterprise,through the QSPM quantitative strategic planning matrix to RY company alternative analysis evaluation on the competitive strategy,combined with qualitative analysis,Therefore,the competitive strategy of enterprises is determined,namely,the low-cost leading strategy,and the implementation and safeguard measures are formulated.Through in-depth study of RY Company,this paper draws the following conclusions:External opportunities and threats facing RY.External opportunities faced by RY Company:the state encourages and supports renewable energy generation,biomass power generation is given priority to online,and the power generation is not limited by the plan;The state proposed to improve the current subsidy mode,to collect and set expenditure,new and old sections,biomass power generation support policies gradually implemented,the pressure of funds to alleviate;The amount of straw resources is large,showing an increasing trend,and the exploitable potential is large.Preferential tax policy,crop straw,bark waste residue as fuel production of electricity or heat to implement the VAT levy and refund policy;Shandong Province will gradually shut down coal-fired power plants with a single capacity of less than 300,000 kW,and expand the installed capacity of new and renewable energy in the province.A national carbon emission trading market was launched to vigorously promote the development of low-carbon industries.RY Company faces the following external threats:the rapid rise of wind power and photovoltaic,the increase of the proportion of new energy power generation,crowding out the new energy power market;Subsidized electricity bill settlement is not timely,the cumulative amount is large;The fuel market is highly competitive;New energy price regression;With the national environmental protection and governance efforts increased,the biomass power generation industry environmental pressure increased.Strengths and weaknesses within RY Company.The internal advantages of RY company are:relying on the advantages of financial centralized management of the group company,to relieve the pressure of capital;Located in agricultural counties,regional and surrounding agricultural and forestry waste volume is large,with resource endowment;Strong corporate culture atmosphere,staff motivation;Strong material procurement ability,procurement cost reduction;Strong R&D and innovation capability;Heat source advantage,the only heating source in northeast Taierzhuang District;Straw fuel has low sulfur content and less environmental input.The internal disadvantages of RY company are:small unit capacity,poor profitability;Fierce competition in the same industry;Lack of funds and difficulties in operation;The performance management system is not perfect,the staff work enthusiasm is poor;Lack of professional and technical personnel,talent fault;The organization is bloated,the management of state-owned enterprises is rigid;The technical strength of the overhaul team is weak,and the on-site equipment maintenance is not in place.According to the analysis,based on the same quality and function of electric power products,RY company leads its competitors with a low cost advantage under the condition that the on-grid price is unchanged,and the implementation of low-cost competition strategy is the best choice.According to the analysis of the enterprise value chain,strengthen the connection with the upstream fuel suppliers of the industrial chain,enterprises should extend the chain,supplement the chain and strengthen the chain,expand the scope of fuel procurement,concentrate on the acquisition of crop straw and other biomass fuels,and reduce the fuel procurement cost.Strengthen the internal value chain management,seize the key links of the value chain,implement cost control,optimize the production process and operation mode;Strengthen the maintenance of standardized management,so that should be repaired,no leakage,improve the utilization of equipment;Implement the innovation of all staff,stimulate the innovation ability of employees,apply the innovation results to the actual production,increase production and improve efficiency,through management innovation,break the rigid thinking mode of traditional state-owned enterprises,management position implementation of the incompetent,the inferior;Reduce unproductive expenses and put your money where your mouth is.In order to ensure the smooth implementation of the cost leading competition strategy,RY company has formulated detailed safeguard measures from four aspects:strengthening organizational leadership,promoting corporate culture,optimizing human resource system and optimizing financial management.In this paper,the in-depth study of RY company’s competitive strategy points out the direction for the production and management of enterprises and the development of competition,and provides reference significance for the same type of biomass power generation enterprises.