An Analysis Of Foreign Commercial Banks' Competitive Strategies In China

The competitive strategy generally is an action plan of how corporation management obtains the competitive superiority or success. International advanced theory indicated that competitive superiority of corporation, especially big company or big group, formed microcosmic foundation of economy development of a country or region. For bear off international competitive superiority, economics and managements treated corporation competitive strategy theory as foreland of academic study all the while, thereby move its development and innovation forward greatly, as organizer and spokesman of structural school, Michael E. Porter, famous strategy economist in US and professor of Harvard University, is the one of representative of this field profit from his competitive strategy theory on new type corporation.After we participated WTO for several years, during the opening to foreign bank gradually, China attract the international known bank's attention and participant, they set up office, branches and incorporation here, as well as cooperate with Chinese bank by equity participation, for the purpose of share the rich and generous reward during China economy high-speed development. We can say that foreign bank in China burn the wind and acquired vigorous progress. But comparing with big Chinese local bank, there is still big gap on assets scale and market share. Upon that, many foreign commercial bank realized their position and situation when they once landing China, some of them found out a set of competitive strategy adapt to themselves, and by relying on profound financial bases and powerful technical background, they took full advantage of global network and mature risk monitoring system, explored a series of flexible financial products, opened lot of needful and profitable segment market. Further more, they solidified much more good relationship with Chinese commercial bank, extended and deepened all-round cooperation each other. However, nowadays global financial crisis caused by Sub-prime Mortgages became more and more worse than before, lots of foreign commercial bank's parent company suffered great strikes, but there is no doubt that their business and performance in China have not been suffered by any negative effect, that also will promote them to adjust and deepen their competitive strategy in China to pertain to diverse and complicated economy situation.