Research On The Competitive Strategy Of A Securities Brokerage Business Based On Product-Driven

In order to remain competitive,companies need to constantly adjust their competitive strategies to adapt to the environment.In the initial period when regulators permitted the commission rate to fluctuate,in order to compete for customers,some securities firms dominated the market by reducing the commission rate,which triggered a "price war" among securities companies.Long term "price war" led to the commission rate continued to decline.With limited new customers,The income A securities brokerage business has also been declining this year.In order to increase revenue,A securities needs to explore a new competitive strategy for brokerage business.Firstly,at this stage,A securities brokerage business is facing four major issues: Commission rates are facing the risk of falling,the relatively small size of the transaction,the new business unit’s profitability is not strong and the ability to serve high net value customers is relatively low.Through the literature review,this paper finds that brokerage business has limited new incremental customers and low commissions rates in the current securities industry.In order to increase revenue,the securities brokerage business should actively innovate and develop enough products to meet the diversified needs of existing customers.As a result,I think developing differential products should be the core competitive strategy of the new competitive strategy for A securities brokerage business.Secondly,this paper analyzes the value chain of A securities brokerage business.The root reason of the problem is that the income of A Securities mainly relies on the commission income of securities brokerage business and the contribution of investment advisors was small.Through the analysis of foreign markets,a shrewd investment adviser will not only increase customer’s value,but also substantially increase the brokerage business income of securities companies.Thus,A securities brokerage business should actively provide investment advisory service for customers.Second,through the analysis of the external environment,this paper finds that intelligent investment consulting can solve three main problems in the traditional investment advisory services: firstly,high charge and fuzzy charging standards;secondly,investment advisory services are not only laborious but also not timely sometimes;Thirdly,investment advisory services mainly serve high-net-worth clients,neglecting small and medium-sized investors.The services of robo-advisor are not only standardized and timely,but also charges and thresholds are low,not only to make up for the shortcomings of traditional investment advisory service,but also can vigorously expand the market for small and medium investors.In summary,the brokerage business of securities companies should focus on the development of investment advisory services with robo-advisor.Thirdly,this paper analyzes the robo-advisor of A securities,and finds that there is great value space for robo-advisor of A securities,but the current operating results are not satisfactory.Although the average fee for service of robo-advisor is 61.6% more than the average old fee,the sales volume is still not high enough to cover the input costs.Finally,based on the current situation and external environment of A securities,this paper puts forward the differentiation competition strategy of A securities.Firstly,we put forward the concept of being the most stable investment advisor in China.Secondly,we improve the product differentiation based on robo-advisor.Thirdly,we use big data to match users and adopt accurate differentiated marketing.Fourthly,from the personnel and services to provide differentiated investment advisory services;Fifthly,to create a differentiated brand of investment advisor services.