Bank Of China Henan Branch, Competitive Strategy,

Chinese banking has experienced the reform process for more than twenty years. After China entered the World Trade Organization, the national banking is greeting a new period filled with both opportunity and challenge since new tendencies worthy of attention appear frequently in many aspects. As the number of market competing entities increases in the market, the rivalry among banks is getting more and more severe. So Chinese banking faces both chances as well as challenge.The most powerful advantage of Bank of China is the face brand, which has influenced HENAN clients profoundly and lastingly. During the recent 30 years, BOC HENAN branch has kept a nice reputation of steady and standard running and has set up an internationalized bank image in the society. The branch owns stable style, comparatively stronger fund power, outstanding overseas superiority as well as absolute dominant position in provincial foreign exchange business. However, the branch running presently still has some problems which cannot be ignored. Firstly, in an emphasis area like Zhen Zhou, the dragon head role of the branch is not distinct because the competition as a whole lacks vitality. Secondly the branch lacks the ability to act according to changing circumstances and the ability to create new ideas. Thirdly, the branch finds it difficult to cast a force of combination or to go shares in resources under present organization structure of vertical function with advisers. Fourthly, the human power resource management system and the impel-control mechanism of the branch are not reasonable enough while the sense of team is not strong and the clerks are getting less faithful in their bank.Compared with those main rivals, the bank is terribly short in financial technology, organization structure and human power resource etc. whether these problems can be solved well or not will make far-reaching influenceto the future competition of the branch. The SWOT analysis on the branch' s main business further shows the specific effect on the branch produced by the above shortcomings. Financial technology is the foundation for a bank to compete. If he seeks to be a winner, the branch must try to find a perfect combination of new-high technology and clients' requirement and to build up a dominant position in rivalry based on financial technology. Organization structure is the system guarantee for a bank to compete. In order to promote his competing power, the branch has no choice but to go with the tendency of the day, to actively regroup the organization structure, to put the business process in order, to make a horizontal organization into reality, and to approach more closely technology reform, market change as well as clients needs human power resource is the carrier for a bank to compete. Usually, a bank' s technology advantage condenses into human power resource, while this resource can upgrade and pass the advantage out. Therefore BOC HENAN Br. must establish the competition strategy to cultivate and promote inner nucleus competing power. The strategy should be based on financial technology, confirmed by organizing structure and carried with human power.When the branch carries out the strategy, the following five aspects should be considered firstly to push forward priority the structure of electronic bank; to accelerate the reforn\of human power; to market and uphold those outstanding clients well enough; to develop intermediate business actively; and to put enough emphasis on the development of central city business.