The Research Of The Competitive Strategies Of The Bank Of China Jilin City Branch

With the globalization, liberalization and e-service of financial development, the global banking has faced the new competitive situation. This made the competition between commercial banks more and more complicate and unpredictable, so are the commercial banks of China. As a result, how to improve market competition ability, survive and develop themselves in the competition has become the hot spot both home and abroad.For the recourses scarcity and survival requirement, the competition is a necessity trend. The commercial banks, as skeleton enterprises of economy development, have also developed their ways with competition. From the process of developing especially the process of competition, the competition theory of commercial banks has emerged and developed, and there are many studies and achievements both home and abroad. However, we can still find the competition situation and existing problems, especially after china's new promise for entering WTO, the gate totally open to outside, the foreign banks coming into, has brought refreshment and pressure of challenge.Chinese commercial banking has entering a new era, which not only means Chinese banks face more powerful competitors, but also the open to the whole world, liberalization of interest rate, almightiness of finance has become a trend, and the increasing maturity, diversification, high-hierarchical service required by clients. This has increase the competition between commercial banks. China is a market with a potential and fast-developing, so commercial banks of China will have a great opportunity. For Chinese banks, challenge and opportunity both existing, the keys lie in how to improve their competitiveness, catch opportunities, and strengthen development and taking an active position in the competition. With the state owned commercial banks have stepping into a very important era under the globalization of economy, internationalization of finance and high-dependence to market, they face the following challenges: Firstly, with the realization of open promise batch by batch, foreign banks has stepping into our financial field, and with a trend of expansion; Secondly, with the deepen of banking revolution, small and medium joint-equity commercial banks and municipal commercial banks have expressed their unique operating vitality. Thirdly, with the developing and growing of financial market, diversification has appeared for enterprises'financing and consumers'saving, which will have a great influence to capital supply and requirement for state-owned commercial banks. Under this situation, China's Theory Circle and banking field have a serious example analysis and countermeasure studies, however, most of them were studying around certain aspects of competition factors, and had a limitation of the handle and analysis overall competitiveness, as a result, it is very important and meaningful to have a comprehensive analysis of Competitive Landscape with the administrative tools, and take this as a foundation fix a coping strategy for state-owned commercial banks. The writer of this essay believe with the help of the theory of Michael Porter's Five Competitive Powers Model and core competence, we can realize this aim. With the developing of China's economy, banks, as skeleton in financial system their reforming and developing not only influence the developing of China's financial market, but also the steady and healthy operation of China's Macroeconomics and the pushing forward of economy reforming. The state-owned commercial banks plays an important role, they owned 60% deposits and loans, 80% capitalization size, but about 50% profits. The state-owned commercial banks are a situation of big size, small profit, diseconomies of scale and weak in competitiveness. Facing powerful competitors, state-owned commercial banks must improve their competitiveness in order to stabilize financial system and national economy.Ⅰ. The competition situation inside commercial banksThe banking service will realize totalization and provide omnibearing service. According to the different service requirement, banks must improve service level, provide products with individualism, strengthen innovation and service content. With the development of Electronic Management of Service system and outsource trend and decreasing of branches, there will be a sharp reduction of normal business personnel and an increase of high qualified personnel of management, analysis, new products developing, designing and maintains of E-Enabled system, which will make the competition of high-qualified personnel fiercer and fiercer.Ⅱ. The competition situation outside commercial banksFirstly, the performance of financing influence becomes weak. With the developing and perfecting of financial market, bond market and bill market, the market share of indirect financing market falls a lot, and its financing influence becomes weak. Secondly, it becomes fiercer and fiercer from the competition of Information Technology Industry. It is the trend for commercial banks and Information Technology Industry to interpenetrate and competition. The operation of banks will rely on the products of Information Technology Industry and the quality of commercial bank workers mostly are also depended on how much Information Technology they have handled, therefore the only things has been left are financial job qualification, creditworthiness, operation experience and permanent assets of years. The development of information technology has brought the new opportunities for commercial banks, therefore the commercial banks successors are who make a combination of market requirements and information technologies, and provide convenient, quick finance products for clients with more responsive and flexible.Bank of China, as one of the four biggest joint-equity commercial banks,owns a long history of development., and clearly it has advantages in the competition of its industry. Bank of China has contribute a lot in the development of foreign trade , as the earliest Chinese professional bank in ,foreign currency, foreign trade, it also makes a lot of strategies on its developing way. Bank of China of Jilin City as a secondary bank is headed by Bank of China of Jilin province, and it accepts policy and process Management from the head office and provincial office of Bank of China. As a result, there is a limitation of self-management and disadvantages in market competition for Bank of China of Jilin, and the writer believe this situation is relevant with its competition strategies. To improve this will give a forward analysis with the methods of strategy management, and then give an understanding of the current situation and competitiveness of regions for Bank of China in Jilin City, and finally give a more clear comprehension with the example. This essay will give an illustration of what kind of competitive strategy we should use now, with Michael Porter's Five Competitive Powers Model and differentiation, in the aim of providing theory guidance for region competitiveness improving.