The Research On Competitive Strategy For Brokerage Business Of Huatai Securities

Huatai Securities Co., Ltd. is one of the first comprehensive securities companies, which was approved by China Securities Regulatory Commission. It’s also one of the first pilots of innovation. With20years’development, the company has formed an international securities holding group structure, which involved securities, funds, futures, direct investment and overseas business. It is conducive to the sustained and healthy development of the company that Huatai Securities listed on the Shanghai Stock Exchange.The brokerage business of Huatai Securities is widely recognized in the community. It has continuously improved in the market competitiveness and brand influence in recent years.Along with the reform of non-tradable shares and the comprehensive management of the brokerage, the capital market of our country has developed rapidly. Meanwhile, the external environment of brokerage has also gradually changed. Securities brokerage business has always been one of the core businesses of securities companies, and it’s also the main income source of securities companies. It is of practical significance to research the competitive strategy of the securities brokerage business, by which we can establish a competitive advantage in favor of the long-term development of the company. The purpose of writing this thesis, is to establish a competitive advantage in favor of the long-term development of Huatai Securities, by using the competitive strategy theory, combined with the the actual situation of Huatai Securities brokerage business.In this paper, we summed up the external opportunities and threats of Huatai Securities through the PEST analysis and five forces model. There are several opportunities as follows:perfection of relevant laws and regulations, sustainable development of the national economy, improvement of residents’income, improvement of the clients’ quality, innovative business launched and the progress of science and technology, and so on. Most threats are from the customers and current competitors.Through the value chain analysis, we can distinguish the advantages and disadvantages. Advantages of internal resources of the company are mainly reflected in the following:strong comprehensive strength and scale advantages of Huatai Holdings, advanced ideas and technology in customer relationship management, ability to attract and cultivate creative talent, strong marketing management by advanced marketing methods and a strong marketing team, good financial situation, as well as innovation management skills. Of course, there are also some disadvantages in the brokerage business, such as the low operating efficiency of business department, regional imbalance and shortage of difference.By comparing three different competitive strategy, we conclude that differentiated competitive strategy is the best choice to Huatai Securities. Through the differentiated products and services, we can create a wealth management platform of whole business chain, so as to form the company’s own unique core competitiveness, and to achieve the business objectives of the company. The research of this paper may be of some practical significance to other companies’ strategic management.