Analysis And Research About The Strategic Groups Of Banks

Since the concept "strategic groups" was introduced at the beginning, many scholars and researchers of strategic management paid attention to this theory, and this issue became one of the most important topics in the field of strategic management. Early researches about this issue mainly concentrated in three areas:(1)If there are stable strategic groups in a industry;(2)Such strategic groups will impact on industry performance;(3)The existence of the strategic group will affect enterprise operating performance. Scholars use archive data from different industry, adopting the method of cluster analysis for a large number of related researches, greatly promoting the strategic groups researches and practical applications. With the deepening of research, new ideas are put forward also. Some scholars began to analysis rivalry within strategic groups and consequences for performance, some scholars use social cognitive theory to explain the formation and evolution of strategic groups, and some scholars point out that there is no clear boundary between groups, but there are many hybrid groups. In short, strategic group theory is always the hot issue of strategic management, having theory and practice significance.There is little research on strategic groups in Chinese academia. Both on the content of the study and in the depth of the research methods are far behind foreign academia. As China’s market economy system establishment and continuously perfect, the economic environment have a great progress. The market competition is increasing in each industry, and our enterprise’s strategic management has obvious improved. There already have formed condition for raising strategic groups in numerous industries. Therefore using the strategic group analysis perspective to study China’s industry can be better for us to know the present competition level of the market.With the rapid development of economic and financial environment optimized ceaselessly, our country’s banking industry has been more developed. In the country’s main economic area, there are various forms of ownership commercial banks. As the shareholding commercial banks’ financial strength developing and urban commercial banks quickly catching up, the intensity of competition in financial markets has enhanced. Due to different banks have many differences in aspects as scale, market positioning and business objectives, so managers also make different strategic decisions. Therefore, adopting the perspective of strategic group analysis of banking discussion helps to understand the current competitive situation of the industry, can also help the bank managers to make appropriate strategic decisions. Chengdu is the economic center of China’s southwest region. Since the reform and opening, through the construction and development for many years, Chengdu becomes more and more prosper, and here become the southwest region’s most important economic hubs in China. Financial industry of Chengdu develops rapidly. According to incomplete statistics, about50financial firms located in Chengdu, which has state-owned joint-stock Banks, state-owned Banks, joint-stock commercial Banks, policy Banks, etc., also have a lot of foreign Banks. Here has relatively perfect financial structure. Considering that the commercial bank has the important role of promoting economic development, this article will focus on the study of joint-stock commercial Banks. Besides four big state-controlled Banks, nearly30joint-stock commercial banks set up branches in Chengdu to provide financial services. So this prosperous bank markets must contain much competition. With the Chengdu agri-businesses bank restructuring completely, the competition gets fierce. Many Banks in the financial markets will face a growing challenge. In order to know the status of the current banking industry development in Chengdu, this article will review the basis of relevant theories and research literatures, and use the banks’ data to analysis Chengdu banking industry. In this paper, the research mainly includes three aspects:first is the existence of strategic groups, including banking competition situation, and what are the distinctive features of each strategic group; Second is the stability of the strategic group. Are members of the group stable? Do banks in different groups have obvious flow behavior; Final is the strategy group’s influence. Analysis the performance differences between different groups.In this paper, we use literature research method and empirical research method to analysis the strategic group structure and its impact on business operating. The main structure is as follows: The first part is the introduction, mainly includes the research background, research significance, research purpose, research methods, analysis methods and the innovation of the article.The second part is the literature review and related theory research foundation. First review the concept of strategic group inner meanings, and then review empirical research in the field of strategic groups of three core issues, finally analysis theory supporting strategic group analysis method.The third part will introduce empirical assumptions, including the existence, stability and profitability about strategic groups in the banking industry of Chengdu.The fourth part is the empirical designing and model setting. Choose data for empirical research. Choose indicators to divide strategic groups, and explain the reason why we using those indicators. Introduce the model and methods for ensuring the correctness of the results.The fifth part is the empirical analysis of the specific results and related instructions. First determine standards for dividing strategy groups. Cluster, and then find out banking groups in the banking industry in Chengdu area. Analyze the group members’stability. Finally use the factor analysis method to determine member banks’ performance indicators, and detailed review the business performance of banks. Study the extent of the impact and influence of the banking strategic group structure. In each specific case, we will also make corresponding instructions, and provide appropriate explanation to the result.The sixth part is the final conclusion and the suggestion. Combined with the empirical results of the theoretical assumptions we can make some introduction that to ensure the integrity of the article. Explain the problems of this study and put forward expectation for the future related research.By using cluster analysis method to study strategic groups’existence in banking industry of Chengdu and by using principal component analysis method to inspect bank performance, this article at least find following two conclusions:(1)There exists stable strategic groups in Chengdu banking industry. Strategic groups are not a random phenomenon. The members of each group are stable. Because there are mobility barriers can stop the group members flow.(2) Banking group structure has a certain influence to in the performance of the banks. In this paper, the empirical results show that the performance of several strategic groups are relatively stable, and the difference between members from the same group is little, but the difference between members from different groups is large.This paper has some contributions as follows:Research perspective. In numerous studies about our country commercial bank market competition situation in the literature, few used strategic analysis. In previous studies, few paid attention to an industry in a region. In previous strategic group studies, Chinese scholars rarely use banking data to analysis the group structure. So this article has difference compare to previous studies. This paper use strategic group analysis method combined with the specific situation in our country, to study the competition structure in Chengdu banking industry.In terms of research findings, based on the theory and empirical analysis, this paper find that there are stable strategic groups in our country’s banking industry. But this article does not draw absolute relation between strategic groups and corporate performance. But this paper finds that the impact of different strategic groups is different. We must realize the real impact of strategic group also will be affected by corporate resources endowment, economic environment, and many other factors.In terms of research conclusions, this paper comprehensively considers multiple indicators, and finds the core indicators to divide strategic groups. This improves the credibility of identifying strategic groups. This paper discusses the existence, stability and profitability of the strategic groups in Chengdu banking industry. Finally in this paper, we find there are stable strategic groups in Chengdu banking industry and this group structure has real influence on bank performance.Based on relevant theories of strategic groups and research review, this paper uses strategic group method analysis Chengdu banking industry. We find there exist strategic groups and this structure has important impact on bank performance. This study on strategic groups has some shortages, so we can farther our studies. We can improve it in many ways, such as studying other industries in other areas. Based on our country’s situation, there are a lot of work we can do to improve this method.