SWOT ANALYSIS OF MIXED OWNERSHIP REFORM IN POWER GRID ENTERPRISES: A CASE STUDY IN WESTERN INNER MONGOLIA

Liu Jicheng 1 , Fu Xiaoxu 1 and Yu Jing 2 . 1. School of Economics and Management,North China Electric Power University,Beijing ,China. 2. Beijing Key Laboratory of New Energy and Low-Carbon Development,North China Electric Power University,Beijing ,China. ...................................................................................................................... Manuscript Info Abstract ......................... ........................................................................ Manuscript History Received: 04 October 2018 Final Accepted: 06 November 2018 Published: December 2018


ISSN: 2320-5407
Int. J. Adv. Res. 6(12), 471-477 472 emerging industries and professional fields, and exploiting industrial investment, project cultivation and equity investment will become an effective complement and important force for the strategic development of power grid enterprises. It is of great significance for realizing sustainable development under the background of new electricity reform and promoting the transformation and development of local resource-based economy.
SWOT (Strength, weaknesses, opportunities,Threats) analysis model is a widely used and effective analysis method, which is very helpful to industry development research [4][5][6]. Some scholars have used SWOT analysis to study the development of power industry [7][8], photovoltaic industry [9], and power grid enterprises [10][11]. Taking Inner Mongolia West Power Grid as an example, this paper uses SWOT analysis model to make a comprehensive analysis of the internal and external conditions of the company's mixed ownership reform from four aspects: advantages, disadvantages, opportunities and threats. On this basis, it puts forward countermeasures and suggestions ，which provide the basis for the company to formulate the next reform strategy and promote the Inner Mongolia power grid enterprises development.

Overview of Inner Mongolia West Power Grid Company
Inner Mongolia West Power Grid Company (hereinafter referred to as Company) is a state-owned super-large power grid enterprise in Inner Mongolia Autonomous Region. It is responsible for the construction and operation of power grids in eight alliance cities in the central and western regions of the Autonomous Region. It has a power supply area of 720,000 square kilometers and serves more than 13.8 million people. Over the years, the company has achieved steady growth in production and operation indicators, and has maintained a stable situation in safety production. The annual electricity sales have exceeded the plan, and the customer satisfaction has reached 98%. By 2017, the company mainly consists of power supply production and business support units, including 12 power supply production units, 10 branch companies, 12 subsidiaries and 2 holding companies.
The company plays the roles of the main body of investment and financing, the main body of major project construction and the main body of the safe operation of the western Inner Mongolia power grid. It is responsible for investment, construction and management of the western Inner Mongolia power grid; operation of related transmission and distribution business; participation in investment, construction and operation of related trans-regional transmission and transformation and networking projects; engaged in power purchase and sale business; management of power trading and dispatching at home and abroad; independently carry out foreign trade circulation business, international cooperation, foreign project contracting and foreign labor service cooperation and other business.
With the strategic transformation and innovation of the company, the production and operation mechanism of the company has changed greatly in the past two years. The company is market-oriented and gradually promotes the construction of market-oriented mechanism and governance structure. It explores the reform of state-owned enterprises, vigorously integrates internal and external resources, and actively promotes industrial restructuring and business transformation and upgrading. Business-oriented, it adheres to customer interests first, improve customer experience, enhance customer satisfaction. it continuously strengthens the management consciousness and strives to improve the management situation. The company has broadened the living space, opened the development channel, and gradually laid down the strategic layout of " laying stress on specific functions of the main industry, diversified development of the industry".

SWOT Analysis of Mixed Ownership Reform in Inner Mongolia West Power Grid Company Strengths
High attention from management. The success of the reform of mixed ownership in state-owned enterprises depends largely on the attention of management. Since the promulgation of the mixed ownership reform policy, the company has actively responded to the national policy, calling on relevant departments and enterprises to formulate the mixed ownership reform strategy and carry out feasibility study.

Brand resources and customer resources advantages.
For a long time, the company has been serving the construction and operation of power grids in eight alliance cities in the central and western part of Inner Mongolia Autonomous Region. Since its establishment, it has a close relationship with governments at all levels, has established a good cooperative relationship with power generation enterprises, and has established a good corporate image and brand. At the same time, its power supply reliability is over 99.5%. It continues to rank first among the top 30 enterprises in the autonomous region and has monopolistic customer resources. These provide market and resource advantages for company to carry out mixed ownership reform.

Geography and location advantage.
Inner Mongolia straddles northeast, north and northwest China, adjacent to eight provinces and regions, and handed over with Russia and Mongolia. The unique location advantage of Inner Mongolia determines that it has a large number of business opportunities in the power grids Interconnection, power trade, power supply and power grid project development, construction and operation of one of the four routes along the "one belt and one road".These has created conditions for expanding overseas business markets and reforming mixed ownership.

Strong financial strength.
The company has strong financial strength and good investment ability. It has the ability to fight for new resources and acquire the resources in stock. At the same time, it can attract private capital and foreign capital investment to a large extent.

Advantages of information resources.
The company is familiar with the operation characteristics of power system, and has obvious advantages in information resources such as power grid development planning, power distribution, user load characteristics and so on. These provide strong support for the subsequent establishment of mixed ownership companies.

Talents and technical advantages.
The company has technical advantages in planning, dispatching, operation, marketing, maintenance, equipment management, safety management and so on. Private enterprises just lack experience in this field.

Scale advantage of new energy development.
The Mongolian West Power Grid actively supports and promotes the development of new energy such as wind power, and has become one of the fastest growing areas of new energy in the country. The installed scale of wind power and generation capacity are among the leading indicators in the country. In the area of distributed energy, it provides a basis for the implementation of mixed ownership strategy.

Weaknesses Relative lack of flexibility.
Major decisions need to be declared to companies at all levels, which may lead to insufficient flexibility and relatively low decision-making efficiency in formulating and implementing mixed ownership reform strategies, which is not conducive to perceiving the market and seizing opportunities in complex and changeable external environment.
Talent structure is relatively unreasonable, and incentive mechanism needs to be further improved. According to the situation of the subsidiaries of the company, the number of high-level technical talents and skilled talents is insufficient, and the number of financial, business, management, computer and other professionals and compound talents is relatively scarce. The incentive mechanism of reward and punishment, the guiding mechanism of talent flow and the scientific career planning are not perfect. The system of talent selection, employment, education and retention needs to be improved, and the mechanism of talent selection and employment needs to be further improved.

Opportunities Macroeconomic policy regulation and control provides policy environment.
Inner Mongolia is an important energy base in China. Building a strong Inner Mongolia power grid is not only the need of Inner Mongolia's economic development, but also the need of the country to realize the optimal allocation of energy resources. Therefore, the government adopts various macro-control policies to adjust the energy industry structure, accelerate the pace of renewable energy development and utilization, and provide a good policy environment for the development of Inner Mongolia power grid. With the gradual advancement of reform, the liberalization of the power selling side has formed a strong expectation in the market, which will strengthen the competition mechanism at the power selling side and form a new marketoriented electricity selling mechanism. The reform of transmission and distribution price will help to promote the process of competitive electricity market and provide a basis for the establishment of market-oriented pricing mechanism of power prices. This will introduce more market competitors to the distribution side and form a marketoriented pricing mechanism. From a strategic point of view, the ultimate state of the electricity market will show such important characteristics as differentiation, cost leadership, regional focus (niche market) and full coverage.
In addition, local energy platforms (provincial and municipal energy companies) will benefit most from this round of state-owned enterprise reform, and these enterprises will also join the competition in the power industry through their advantages in resource integration to intensify market competition.

Conclusion and suggestions:-
To sum up, the advantages, disadvantages, opportunities and threats of the company's mixed ownership reform are summarized. According to the results of SWOT analysis, corresponding development suggestions and strategies are put forward, as shown in Table 1.
Based on the above analysis, we suggest that companies should actively explore the reform of mixed ownership and state-owned capital investment and operation mode, and focus on guiding subsidiaries to advance the reform of mixed ownership in an orderly manner under the unified planning and deployment of company. In accordance with the overall development plan of "prominent main industries and diversified industries", and market-oriented, the reform of mixed ownership has taken substantive steps.