Abstract. With the reformation of power sale side moving forward constantly, an increasing number of electricity retail companies are involved in the competition of selling market, which is contributed by the release of retail side. Aimed at this background, the present paper explored the competition situation of the whole market, based on the Potter 's five force model from five aspects: the current rivals, the threats of entry, the threats of substitutes, the bargaining power of suppliers and the bargaining power of buyers. Finally, the relevant competitive strategies and suggestions were put forward for the current electricity retail companies.