Research On The Competition Model Of Commercial Banks In Rizhao City

With the development of economic globalization,the rapid growth of Internet financial companies and the commercial banks,the competition among the commercial banks become increasingly vigorous.It becomes obviously inferior what commercial banks uses the traditional strategy which is antagonistic.In order to win the competition,the commercial banks continuously apply the lower price strategy.With the lower price strategy,the commercial bank is willing to kill the other ones.However,owing to the special nature of enterprise and the dramatic influences on the economy,the commercial banks are not so easily going bankrupt.Since new China was founded,there has been only one commercial which is insolvent.Besides,for commercial banks have invested too much energy and time in the competition,there is little time to enrich the types of their products.Under the new circumstances,commercial banks should change their strategies and ideas rapidly to develop.The full cooperation model is often difficult to maintain because it requires commercial banks to maintain "intimate" cooperative relations.As a new competition model,the co-opetiton can gain more in external competition.In the meanwhile,it can stay energetic through the competition of each one's value in the internal organization as a whole.This paper is based on theoretical research analysis.Through the introduction of competition types and their characteristics,there are three competition types,including the antagonistic strategy and its characteristics,the full cooperation model and its characteristics,co-opetiton model and its characteristics,.Then,comparing the advantages and disadvantages of different competition models,it concludes that the co-opetiton model is the best.With the introduction of the competition in Rizhao City as a case,the paper describes the performance of the banks and the negative impacts,which use the antagonistic strategy.Besides,the paper introduces the commercial banks which apply the co-opetiton strategy in China.Along with the establishment of complete information static game model,through the "Prisoner's dilemma" and "Hawk-dove game",the paper comes to the game theory analysis.Then,by establishing multioligopoly Cournot equilibrium model and comparing the equilibrium solutions of different competitions,it concludes the co-opetiton model is the best answer.Last but not the least,the paper gives some advice on the commercial banks basing on the game theory,including changing the concepts of competition,adopting the co-opetiton model to“win-win”,preventing the risk of co-opetiton,making the appropriate choices in the way of competition and cooperation.