Yongzhou Rural Credit Cooperatives, Business Strategy Research

In recent years, with the relaxation of the policy to get access to rural financial institutions and the diversification of the rural financial market main body, the long-term "monopolization" of rural credit cooperative in rural financial markets was broken and its original operation model could not adapt to the increasingly intense competition, which urged rural credit cooperative to formulate new operation and development strategy.This paper, taking rural credit cooperative in Yongzhou as object of study, discussed the rural credit cooperative's operation strategy in multi-competition based on the situation of imbalance between demand and supply. The paper reviewed the relevant rural finance theory, as well as the history of the reformation and development of rural finance, and forecast its developing tendency. The configuration of rural finance industry was analyzed by using five strength models put forward by Potter.Through field research and questionnaires, the overall situation in Yongzhou and demand of sample farmers were analyzed, we found that the different finance demands of farmers could not be met by non-different services, which implied enormous room for rural finance. Then, the main problems in operation and development of rural credit cooperative in Yongzhou were analyzed and its development and innovation were summarized. With the help of SWOT, we came up with an idea that rural credit cooperative had potentials to be tapped in service innovation and management. The rural credit cooperative should make use of its own advantages to seize external opportunities and choose the direction of growth. Finally, the operational objectives and strategy to meet competition of rural* credit cooperative in Yongzhou were put forward. That was it should consolidate and enlarge its market share, be customer-oriented, stick to the principle of serving the agriculture, country ,farmers and community, choose the competition strategy of market expansion, objective focused and talent first. The rural credit cooperative should expand urban and rural market , stimulate business innovation by creating service brand with characteristics; by enacting concrete measures to secure the implement of strategy, rural credit cooperative in Yongzhou was eventually put into commercial, joint-stock community bank or retail bank.