Case Study: Development Strategy Of Intermediate Business On Bank Of China Gx Branch

As the development of Chinese social economy and financial market, business bank faces good opportunity to use intermediate business to avoid homogeneous competition in deposit and loan business. For GX branch located in Guang Xi province, developing intermediate business plays a essential role in optimizing business line and forming core competitiveness.Outer environment indicates that economy factor and consumer demands in Guang Xi province provide a good prospects to develop intermediate business. Progress in web technique decrease the operation costs and improve the response speed. The main rival are large state owned banks and foreign capital banks, they will limit GX branch to extend market in intermediate business field. However, tradition in financial field views intermediate business as a free tool to promote deposit and loan business, this fact is also a threat for GX branch. As a branch of Bank of China , the powerful brand resource and outer clients net form the basis of developing intermediate business for GX branch. Especially in intermediate business related to foreign currency, GX branch has strong competition advantage right now. The problems is that the scale of intermediate business is relatively small and will have a negative impact on operation costs.Strategy positioning of developing intermediate business for GX branch is the result of analyzing internal and external environment. The target market aims to high end clients——individuals who have high income and corporation clients. The key business is intermediate business related to foreign currency. The competition advantage is using differentiation strategy to avoid competition from others. Business extending strategy is use resource advantage and cooperate with strategic ally to extend the emerge market, and then gradually increase the market share.In order to realize this strategy positioning, GX branch needs to combine the strategy direction with current resource and make sure the strategy gap. Beside that, GX branch also needs to adjust operation value, innovative culture, information web Platform, human resource, risk management and other factors.