Research On Competitive Strategy For Individual Loan Guarantee Insurance Of PICC

After 2013,with the adjustment of national and local government-related automobile policies,the growth of China's auto ownership has started to slow down,which,at the same time,affected the premium growth of the property and casualty insurance industry,as auto insurance is half of the country of the latter.Since the beginning of the 21 st century,as the living standards continues to rise,people's demand for consumption has been increasing.Various types of consumer finance companies and consumer financial products have mushroomed.How to effectively meet the customer's needs for insurance in a complex and ever-changing market is the main concern of PICC.On one hand,the growth of auto insurance is weak and on the other is the outbreak of consumer finance.Under this background,PICC spotted market opportunities and resolutely decided to enter the consumer finance market.The cut-in point was individual credit loan guarantee insurance.Based on the background above,this essay uses the relevant theories of strategic management to study the competitive strategy of PICC's individual credit loan guarantee insurance business.In the research of this paper,firstly,the PEST analysis framework was used to analyze the external macro environment of PICC,then Porter's five-force model was used to conduct an in-depth analysis of the company's internal environment.In addition,a SWOT analysis of the strengths and weaknesses,opportunities and threats of PICC's individual credit loan guarantee insurance business is also conducted through an in-depth assessment of the internal resources,capabilities and management status of the company.Based on the research of internal and external environment,the author analyzes the possibility of implementing three different competitive strategies for PICC's individual credit loan guarantee insurance business,and finally recommends the use of differentiation strategy,which includes product differentiation,sales channels differentiation and management systems differentiation.It also analyzes the guarantees for implementing it.The above research has laid a solid foundation for the formulation of the strategic system and the implementation of the strategic plan of PICC's individual credit loan guarantee insurance business,and has also proposed feasible solutions for the improvement of the strategic mechanism of it.