Analysis of the dynamics of development and competitiveness of the Chinese gas industry

Abstract

The object of research of this article is the natural gas industry of China, special attention is paid to competitive strength. Michael Porter's models cover many issues of the competition problem. The authors use M. Porter's five competitive forces to analyze China's gas industry. Together, these five factors influence the attractiveness of the industry and the decisions of competitive strategies in its place. Changes in various combinations of the five forces ultimately affect changes in the potential profit of the industry. The authors reveal the space of competitive forces, the competitive environment in the gas industry of the People's Republic of China, identified the driving and restraining forces of the gas industry of the People's Republic of China. The main conclusions of the study are: the main driving force in the gas industry in China comes from buyers, the restraining force in the gas industry in China mainly comes from the main competitors of the industry. China's economic development, demand for clean energy and increasingly advanced technologies for the development and use of natural gas are driving the development of China's gas industry. The raw materials of gas in China are highly dependent on imports, the construction of the infrastructure of the gas industry is difficult and expensive, and the efficiency of the use of the built gas industry is insufficient. Identification and analysis of the driving and binding forces of the industry, and the development of countermeasures are especially important to ensure the sustainable development of the industry.