Research On The Development Strategy Of Small Loan Company In Qujing City, Yunnan Province

The microloan company has been an important part of China’s financial system. Since 1993, China’s microloan institutions experienced a shift from foreign aid project for China poverty to commercial microloan institutions, and the microloan company has opened up a new channel to meet the "three rural" and SME financing needs and is playing an important role in promoting economy. However, as a non-formal financial institutions, microloan company’s development has encountered a series of problems, such as unclear market positioning, imperfect laws and regulations, limited source of funds, etc. In the uncertain policy environment, if the microloan company wants a long-term, stable development, it needs to use the existing conditions of the favorable factors and local conditions to clear its objectives and develop the strategies suited to its own characteristics.In this paper, Qujing microloan companies is selected as the research subject, and its development status and objectives is investigated with the use of the PEST environment analysis and Porter’s five forces analysis model. The paper analyzes Qujing’s macro environment and the competitive environment in microloan industry, and then summarize the opportunities and challenges faced by microloan companies; Based on the status of microloan companies in Qujing, the paper analyzes their business resources, competitive strengths and weaknesses; and formulate Qujing microloan companies’vision, core concepts, future prospects and the goals, which include orientation objectives, profitability goals and human resource development strategy. According to the strategic objectives, and based on the microloan company’s external opportunities and threats, internal strengths and weaknesses, the paper develops Qujing microloan companies’reverse strategy (WO), growth-oriented strategy (SO), multiple business strategy (ST) and defensive strategies (WT). After referring to the current realities of Qujing microloan companies, the paper chooses the defensive strategy (WT) as the overall competitive strategy. Finally, based on the overall competitive strategy, the function strategy of Qujing microloan companies is formulated, including marketing strategy, risk management strategy, human resource strategy and investment and financing strategy. The appropriate strategic control program is proposed.