Research On Differentiation Competition Strategy Of County Rural Commercial Banks

In recent years,with the development of economy,China's banking industry has developed rapidly.As of December 2018,there are 4588 banking financial institutions in China,of which 1397 are rural commercial banks,accounting for 30.4%.As an important part of China's banking industry,rural commercial banks play an important role in rural economic development.At the same time,rural commercial banks have obvious regional characteristics,widely distributed in the county and below areas.Rural commercial banks in county areas have not only the advantages of good financial situation,complete distribution of outlets,flexible organizational structure,good brand and corporate culture,but also the disadvantages of single business income,shortage of professionals,weak comprehensive marketing ability,weak R&D ability,low level of informatization,backward service mode and financial management level to be improved.With the deepening of financial reform,the vigorous support of the state for the "agriculture,countryside,and farmers" economy,the substantial improvement of living standards of residents,the deep integration of financial business and science and technology,rural commercial banks have a very broad development prospects.But at the same time,it also faces the threat of tightening supervision situation,shrinking profit margin,threat of substitutes,high homogeneity of products or services leading to increased competition,and increased credit risk.Therefore,it is necessary to choose a reasonable competitive strategy for the development of county-level rural commercial banks.Through literature analysis,this paper collects and collates relevant data for analysis,and puts forward a topic,that is,the research on differentiation competition strategy of county-level rural commercial banks,and points out its research background and significance,research content,research methods and innovation points of this paper.Then it analyses the theoretical framework of this paper,and through consulting the research data at home and abroad in recent years,it is not difficult to see that foreign research on the competitivestrategy of commercial banks started very early and there are many research theories,but there are few studies on rural commercial banks.In recent years,domestic scholars have gradually carried out theoretical research on rural commercial banks,but the research on rural colmercial banks at county level is still blank.Based on PEST model and taking a county's rural commercial bank as an example,this paper constructs an analysis of the political,economic,social,cultural and technological environment in the county environment,and draws a conclusion that the macro-environment is good for the development of rural commercial banks as a whole.Based on Porter's Five Forces Model,this paper analyses the rural businessmen in the county environment,including suppliers,buyers,substitutes,new entrants and existing competitors.The impact of industrial banks finds that although the bargaining power between suppliers and purchasers is weak,the threat of substitutes is greater,and the competition among banks is intensifying.Based on SWOT analysis,it is found that county-level rural commercial banks have outstanding advantages,many shortcomings,opportunities and challenges.Finally,based on the above analysis,after eomparing horizontally with other strategic models,it is concluded that the differentiation strategy is the most suitable for County Rural Commercial banks.The choice of differentiation strategy,on the one hand,comes fron the analysis of the advantages of the internal environnent of County Rural Comlercial banks,and on the other hand,is the inevitable conclusion caused by the transformation of external environment and economy and the intensification of industry competition.In view of County Rural Conmercial banks,the author thinks that we can start from four aspects:customer service differentiation,financial product differentiation,marketing channel differentiation,personnel management differentiation,and put forward the safeguard measures of customer segmentation,innovative products,expanding marketing channels,improving operation and personnel management.In view of a single sample,the overall situation of county-level rural commercial banks is not fully described in this study.I hope that this paper can play a role in attracting valuable information,and play a certain reference role in the development of competitive strategy of county-level rural commercial banks in China.