Research On Competitive Strategy For Enterprise Sector Of Industrial Bank Co.,Ltd. Jinan Branch

The Industrial Bank was established in 1988. It is a widely recognized national joint-stock commercial bank in the domestic financial market. Jinan Branch of Industrial Bank was established on July of 2001 in Shandong as a provincial level domination branch. Jinan Branch had a rapid development since the establishment, now is becoming the first echelon of the bank industry in Shandong Province. In recent years, the banking industry is facing the complex economic environment. The state economy is fast growing, in the meanwhile, inflation rate is higher, domestic demand is also insufficient. In particular, entering 2011, the State monetary policy is becoming tight, the bank industry has entered an interest rate hike cycle, and the cost of loan is substantially increasing. In the fast-changing economic environment and intense competition of bank industry, the top priority of Industrial Bank is to develop appropriate competitive strategies and cope with the challenges.This paper is aimed to study and work out an appropriate competitive strategy for Business of Enterprise Sector of Jinan Branch of Industrial Bank. First, using a variety of internal and external environment analysis tools (EFE and IFE) to analyze and evaluate the macro-environment (PEST), internal strengths and weaknesses of Jinan Branch of Industrial Bank. Through the analysis, the external environment of the Branch is favorable; the economy of endogenous growth momentum is increasing, the investment structure is improving. The policy support of the government provided a large number of investment opportunities for Blue Economic Area, small and medium enterprises, energy conservation, comfortable housing project and other aspects. The Branch itself also has certain advantages of brand effect, product innovation, service network, and management control. But the Branch also faces threats and challenges, such as:strict banking supervision, scarcity of credit scale, intensification of horizontal competition, and lack of endogenous growth momentum. After the above analysis, this paper use SWOT Analysis and Quantitative Strategic Planning Matrix (QSPM) to compare the optional competitive strategy for Business of Enterprise of Jinan Branch of Industrial Bank, and ultimately determine to implement the differentiation strategy.In order to ensure the effective implementation of differentiation strategy, this paper proposes a series of measures and proposals from below aspects:First, differentiate the marketing for market segments. Second, use the clients' layer-management; meet the special requirements of clients. Third, explore specific market, provide professional services. Fourth, organize structure reform, use the dynamic centralized management. Fifth, improve human resource structure, ascending human resources overall quality. Sixth, improve the institutional mechanisms, enhance operational efficiency. Seventh, optimize the allocation of financial resources.