Icbc Bank Of China Card Business Development, Strategic Analysis

The China UnionPay has opened the Chinese bankcard industry epoch as well as it indicated that the industry rocket whereat. With the joint-stock transformation of the sate-owned commercial banks and the financial sector opening outside, many domestic banks have started to implement the "wholesale" to "retail" bank restructuring strategy. Competition makes sudden escalation of bankcard. Faced with such huge industrial environment changes, how to adjust to card business strategy is a significant problem, which is vital to the realization of the strategic goals- "Retail-Bank No.1 of China" to the Industrial and Commercial Bank of China (ICBC). The study of this issue has become a major content of the paper. This paper observes some respects such as the development of China's bankcard industry, ICBC's business status about card and the competition, based on the theoretical analysis of the bilateral market operation mechanism and industry features. This paper points out clearly that there is not a balanced development of both ends of the bankcard market that the credit card market is still in the initial stage, the big banks leading the market and the pretty higher exchange charges and other issues. Although the ICBC's bankcard business also maintained the dominant position relating to the funds, technology and the networks, etc, it's market share has declined each year, the performance unsatisfying. This paper, on the basis of the above study, using the "Blue sea" strategy theories and its analytical tools research the ICBC and its competitors, aims at achieving a breakthrough in the growth and expand its business by relying on brand of China Union Pay, by Innovating products, by activating the noncustomers of bankcard. Then, as a largest bank, The ICBC would promote technical cooperation of network-sharing amongst the banks with its influence,...