Research On Core Competitive Force Construction Of State-Owned Commercial Banks In China

As a formal member of WTO, the financial market of China has to be fully opened to the foreign banks, so the banks of China have to compete with foreign banks in the globalizing market. Compared with competent foreign banks, as the principal part of Chinese banks, the State-Owned Commercial Banks'flexibility of mechanism, personnel quality, capital strength, and science and technology development capacity, etc. lap foreign banks widely. At the same time, restored with their flexible mechanism, the joint-stock banks of China are nibbling the limited market, threatening the leadership of state-owned commercial banks. So how to change positively and to improve the core competence so as to adapt to the changes in the serious market is the important issue faced by the State-Owned Commercial Banks of China. There are many kinds of theories about core competence, such as market-orientation theory, competence theory, and resource theory. Market-orientation theory focus on outside market's effect, while competence theory focus on alignment of inside capacity, and resource theory emphasizes the analysis of outside market demand , based on inside resources. We argues with that the core competence of company is the reflection of capacity integrated by intellect, technology, products, management and culture etc, which are built upon core resources, a complicated and orderly running system including all the sides of company's operation, and the results of interaction between company and market. This paper applied resource theory and inosculating theory, extended it to analyze the core competence of State-Owned Commercial Banks of China. In the material analysis this paper applied comparable analysis method to analyze the core competence of Chinese State-Owned Commercial Banks. By analyzing the characters, development trends and constructing core competitive force method of commercial, comparing between Chinese State-Owned Commercial Banks and foreign banks, and by comparing with joint-stock banks of China, this paper finds many advantages like localization, wide net, abundant personnel resource, and government policy support etc., but many disadvantages, such as bad governance, bad quality of assets and profit capacity, weak strength of capital, and inflexible operation mode, etc. belonged by Chinese State-Owned Commercial Banks. Based on marketing management for high quality client of Chinese bank industry, this paper put forward six ways to improve the core competence of Chinese State-Owned Commercial Banks: firstly, to improve the governance and to reform property right; secondly, to strengthen the basic capacity; thirdly, to strengthen risk management and to build up well inside-control system; fourthly, to build up effectively running mechanism; fifthly, to integrate the operation-flow; sixthly, to emphasize difference strategy; finally, Based on marketing dynamically change the core competence following. For showing the seven ways'practical effect more, this paper selected the case that Bank of China constructs core competitive force through the reform and a material marketing case, offered realistic attestation for constructing State-Owned Commercial Banks of china on macroscopical lay and microcosmic lay.