State-owned Commercial Banks, Competitive Strategy

The subject of this paper is to study the competitive strategy of the national commercial bank after china takes part in the WTO, which includes four parts as follows:The first section studies the present competitive strategy of the national commercial bank. Firstly the paper defines the concept of competitive strategy and analyzes the four essential factors that must be considered in building the competitive strategy. Secondly the paper further reveals the hypothesis on the present competitive strategy and draws a conclusion that the present competitive strategy of the national commercial bank is general, vague and inefficient.The second section discusses the competitive environment of the national commercial bank after china takes part in the WTO. Firstly the paper studies the external competitive environment, which includes the analysis of industiy competitive structure, competitive opponent, and macro environment. Secondly the paper studies the internal competitive environment on the capability and resources of the national commercial bank, which provides the information for making a strategic decision.The third section probes the decision of the competitive strategy of the national commercial bank. Firstly the paper reveals that the competitive advantage is the aim of competitive strategy. Secondly the paper points out that there are three fundamental competitive strategies that can make the competitive advantage. Finally the paper makes a conclusion that the Cost-Leadership Strategy is the right competitive strategy for the national commercial bank.The last section focuses on the implementing of the competitive strategy of the national commercial bank. Firstly the paper analyzes the characteristic of the cost structure in the national commercial bank and points out that the Activity-Based Costing System is the best method on the cost management. Secondly the paper explains how to establish the cost counting system with ABC (Activity-Based Costing) and the cost analysis system with ABM (Activity-Based Management). Finally the paper puts forward the suggestions to solve the several past cost problems.