The Business Analysis And Developing Strategy Research Of Jinlin North Wansheng Co LTD

North Wansheng Investment and Management Consulting Co., Ltd (North Wansheng Corporation) is one of the securities investment consulting corporations first authorized to have the qualification in our country, and also the only consulting corporation that has certified qualification in Jilin Province. From June 2001 A share market entered into the bear market that has lasted 5 years. In this situation, the retained profits and main business revenue of North Wansheng Corporation have decreased year by year from 2000 to 2004. This has made the corporation fall into a vicious circle. The recession of the market led to the decrease of its business, which resulted in the decline of its revenue. Decreased revenue cause the loss of employees, which prevented them to extend their business. On the surface, this vicious circle is a result of the recession of the securities business, in fact, however, it is because that the strategies of the company rely too much on the secondary market and its business revenue are not diversified. As a result, the corporation has to establish new business and new strategies. The puzzle Dom does not only belong to the North Wansheng Corporation itself, but to the whole industry. This is because that threshold of entering to this industry is low, the size of the investment-consulting corporations is small, and the quality of the personnel is poor. In addition, the relevant laws and regulations of our country are lagged behind the development of this industry, which is also an important reason of the present situation. The situation in other countries is just opposite to what we have now in China. Modern consulting has become a lager industry, and has attracted much attention of the individuals, governments and corporations in many countries, especially the developed countries in the world. The development of consulting industry has become one of the important symbols, which can estimate the development of one country. After comparing the development of consulting industry of home and abroad, we believe the modification of our strategies is quite necessary. After China entered WTO, opening to the outside of the finance services industry of our country will be gradually realized. At present, foreign investment consulting corporations have entered our domestic market. Relying on their brand awareness and abundant capital, these corporations have enjoyed many advantages in financial and economical information, information platform and database development, and has gradually occupied our domestic market. As the capital market of our country will soon open to the outside in an all-around way, the time we have is becoming less and less. Therefore, the modification of strategies is not only necessary and important for North Wansheng Corporation, but also for the whole securities consulting industry. On account of the difficult situation in the market, many domestic consulting corporations have explored to modify the strategies in China's securities investment consulting industry. From present development, we can find out that securities investment consulting corporations are developing into two types. One is the type of software, providing perfect information services. The other one is the type of actual business, including financial consultation and financing business. According to our practical situation and financial environment, the financial consultation business of the type of software and the type of actual business is not suitable for our North Wansheng Corporation. I believe that our corporation can modify our strategy to personal banking business. Financing is raising and using capital, and is a way of making money and a managerial skill which can increase the yield of investment by properly avoiding risks and achieving the prospective income. Nowadays, there are several characteristics in the domestic financing market: 1. The great increase of personal financial asset opens up a large space forindividual financing market. 2. The property possessor's demand for risk control and capital increment increases. 3. The financial organizations'demand for market share and stabilization of income origin increases. The huge potentiality in the domestic financing market has provided a favorable market segment for our corporation to make financing business. It is estimated that in the coming 5 years, China's personal financing market will increase 30% every year. This has opened up a large market for personal financing services, which will become a focus that attracts much attention of property possessor and financial services organizations. At the same time, when the economic develops, the society progresses, the personal diathesis advances, and the Chinese cities step on the juice, the culture factor has provided for the company's future development in financing business. But at present the law about the financing business is relatively lag and the deferent supervising departments are limited in their own authorization limitation. They didn't consider the country's financing supervising status as a whole from the point of market development. But it provides an opportunity for small company as us due to disadvantages occurred which we can control the influence of it. So the law and rule in present market are propitious for small companies as us. According to the market at present, the competitors of company's financing business are mainly from other industry departments, such as banks, stockjobbers, insurance agents, funding companies and trust companies. Although banks give a relatively wide region and a complete function, the factual result is not reached already. People's ideal about personal banking business is limited in traditional deposit and credit business. The financing business of stockjobber is not very broad. It is an innovation that bill brokers financing together. But the higher subscribe starting point and the longer time limit set a high threshold for it. The kinds of nationalfunding products are too single relatively to them abroad. And at the same time, many broker jobbers are face with ransom pressure any time because of the inappropriate propagandize and temper of being eager for quick success and instant benefit of the brokers. It is not favorable for the development in long term. Insurance is one of the most popular financing products at present and the developing potential in the market and the strength of it should not be ignorant. But the financing business of trust company is in the developing process. Sum up, the competitors are mainly form banks and bill brokers. We should avoid from the competition mentioned above and set our object into the medium and smaller customer groups. The main advantages of our company during the process of switching to financing business: 1. At present, the financing business market is in a 'free competition market'and the cost of passing in and out is relatively low. 2. The employees'diathesis of our company is relatively high, so we have well-knit staff basic. 3. Our company has developed financing studio business once, and it provides a lot of customer resource. 4. We are well known in our province. 5. Our company is an agency in deed, so the disadvantages of lacking of communication between company and consumer is offset. Advantages: 1. The registered funding and the scale of our company are small, and the products and services range is limited. 2. It is difficult to fix the price of service. 3. It needs a lot of training expenditure. The external and internal factors constitute the condition and the basic of switching to financing business for North Wansheng Cooperation.