Research On Challenges And Countermeasures In The Competitive Strategy Of ICBC Foshan Branch In The Era Of Internet Finance

With the development of a new generation of information technology, such as cloud computing, the Internet of things, big data, and mobile payment, the Internet finance as been playing an increasingly important role in people’s daily life, as well as ringing opportunities and challenges to traditional financial services of commercial anks. Therefore, studies on how the traditional commercial banks make effective usiness competitive strategies and gain competitive advantage according to the usiness environment and internal conditions, in particular, seizing the opportunity in he modern era of Internet finance, have the vital significance.This paper takes the development strategy of Industrial and Commercial Bank of China in Foshan district, which has traditional advantages, as a case study, to nvestigate the competitive strategy of how ICBC Foshan Branch can effectively capture regional market under the background of rapid development of the Internet finance. In the first place, this paper elaborates the connotation, development status, outstanding characteristics, and the development trend of the Internet finance. Based on the background information, it then analyzes the influence of Internet finance to the social development, commercial bank management, and the significance of making effective competitive strategy of ICBC Foshan Branch in the era of Internet finance. The basic theory such as basic key concepts and analysis tools, competitive strategies and Internet finance from western and Chinese researches are also reviewed. In the next place, this paper introduces the general environment, business operation, and strategic challenges faced by ICBC Foshan Branch. Furthermore, by applying the fundamental strategy analysis methods, it investigates the ICBC market competition’s challenges from the external environment, industry and internal environment via the PEST and Porter’s Five Forces model, and then analyzes the internal advantages and disadvantages, and external opportunities and threats of the ICBC Foshan Branch’s competitive strategy via the SWOT model. Last but not the least, combined with ICBC Foshan Branch’s strategic objectives and development prospects, this thesis utilizes the theory of competitive strategy to study the corresponding competitive strategy, determines that ICBC Foshan Branch should adopt differentiation strategy to deal with the present predicament. Finally, the thesis gives the general summary of the strategies and the countermeasures for the development of ICBC Foshan Branch.This paper takes the perspective of Internet finance, transformation of the traditional large commercial banks and regional business development as entry points espectively, and will also employ empirical research methods to analyze the case vith qualitative and quantitative approaches. After the determination of adopting orresponding strategy for ICBC Foshan Branch, this paper expounds on the ormulation and implementation of ICBC business development strategy in the era of he Internet finance from the following aspects:construction of Internet finance, nnovation from business transformation, marketing, human resource, and risk nanagement to avoid homogeneous competition, all of which will ensure the effective implementation of enterprise’s competition strategy.