Research On The Differentiated Competition Strategy Of LS Bank

For a long time,traditional financial institutions have benefited from rich deposit and loan spread income,while meantime showing little interest in product research and development,mining long-tail customers,and conducting intermediate business.As the central bank has repeatedly lowered the benchmark interest rate for deposits and loans since 2015,China is actively promoting market-oriented interest rate reforms and gradually forming an LPR interest rate pricing mechanism.Bank deposit and loan spreads have continued to decrease,which has greatly limited the expansion as well as the development of traditional financial institutions.In recent years,Internet finance has quickly seized some markets due to its pricing and convenience advantages.Affected by the spread of global new crown pneumonia,the risk of the world economy falling into recession has augmented.The Sino-US trade friction also adds great external pressure to Chinese economy,resulting in a slower economy growth rate.Additionally,under the effect of national industrial policies,the financial industry has given profits to the real economy,which has led to a reduction in the profits of financial institutions.Faced with ascending customer expectations and increasingly homogeneous banking products,it has been one of the core strategic issues for all banks to seize an crucial position among many powerful competitors.This study takes the local commercial bank LS Bank as the research object.It focuses on the policies and strategies for the implementation of differentiated strategic development methodology.The main goal is to help with LS Bank's future development;provide a specific strategy for LS Bank to maintain leading level of asset growth rate.Under the guidance of corporate strategic management theory,this study conducts an in-depth analysis of the internal and external development environment of LS Bank.With the help of literature research method,survey research method and experience summary method,it formulates a differentiated development strategy.The research cis divided into six parts: Part one is introduction.Explain the research background and significance of the differentiation strategy of local commercial banks,provide a summary of current research results at home and abroad,and introduce the research content,research ideas and research methods used.The second part is related to theoretical concepts.It includes the definition and development of strategy,the elaboration of competitive strategy theory and related theoretical tools,which make theoretical preparations for thesis writing.The third part analyzes the external development environment and internal environment of LS Bank.The PEST analysis methodand the five-force model analysis method are used to analyze the external strategic environment and industry environment of LS Bank;SWOT is used to analyze the internal and external advantages and disadvantages to lay the foundation for the development of the next differentiation strategy.The fourth part is the design of LS Bank 's differentiated strategy.Based on the detailed analysis above,firstly it proposes the construction of a “Digital Banking Department”,which makes it possible to realize organizational differentiation and provide a powerful force for the implementation of LS Bank ' s product and service differentiation measures.Secondly,it is proposed to accelerate product innovation,realize product differentiation,and create "explosive" financial products with ingenuity.One of the deliverable is the realization of marketing differentiation,such as chain marketing model,mesh marketing model and tracking marketing model.It will contribute to improving service levels,realizing service differentiation,and enhancing customer satisfaction through customer segmentation models,customer life cycle models,customer economic profit models,and customer lifetime value models.The fifth part is safeguard measures.They are designed to improve the human resource management system,strengthen the risk management ability,and consolidate the company's core culture to ensure the implementation of the bank's differentiated strategy.The sixth part is the research conclusion.