Research On Competition Strategy Of Personal Financial Business For Bank Of China

After the shareholding system reform and with China’s GDP maintained rapid growth and the increasing disposable income of residents continuously, the personal financial business for China’s state-owned commercial bank has rapidly developed in recent years, which becomes the focus in this period. The personal financial business is introduced earlier as a domestic bank in the Bank of China, which had founded a Wealth Management brand and launched wealth management center and private bank in recent years, and successfully established a three-tier wealth management system. The personal financial business has got access to healthy development. However, comparing with the international trend of the banking in China recently, and rapidly increasing of wealth and variety of financial needs of the clients, It is particularly important for Bank of China to develop personal financial business. At present, it is necessary to the development of personal finance business of Bank of China from the strategic point of view.First,we elaborate the basic theories of strategic management, development process,main schools of thought of the competition strategy theories and the main models used in this text,and analize the the development of personal financial bussness for Bank of China based on the related theory of personal finance, through the combination of theory and practice, comparative analysis, case analysis and other methods, using the SWOT analysis method, including the exiting strengths and weaknesses of financial business, potential opportunities and threats, make use of the SWOT matrix, put forward the feasible measures of Bank of China, which are reflected in the differences competitive strategy theory drawn up afterwords.Through the analysis of the theories of competitive strategy, we clarify the cost leadership strategy and focus strategy doesn’t fit, propose the competitive strategy of differentiation is the suitale one for the personal financial business for Bank of China at the present stage. Differentiation strategy is refered that products and services of the commercial bank and competitors have obvious difference, form up the ordinary feature and strategy used, then win competitive advantage. The conditions to successfully carry out overall deferentiation strategy lie in:1. differentiation of management modes and service;2. product differentiation;3.employees differentiation;4channel differentiation and so on. In addition, Resources play a key role in carrying out strategy. According to the five points mentioned above, we put forward policy and suggestion for Bank of China to implement the overall deferentiation strategy of personal financial business.