Research On Development Strategy Of M Bank Credit Card Business

In recent years,China has made remarkable achievements in economic and social development.Now China has become the second largest economy in the world.China's per capita GDP is increasing year by year.People's consumption ability and material living standard are increasing year by year.Consumers' consumption concept and awareness of consuming in advance are also growing,which also brings huge business opportunities to the banking industry.Since China's first credit card was issued by China Guangfa Bank in 1995,the other banks have seen the market opportunities.They have quickly imitated and issued their own credit card products to join the blue ocean market.With the rapid development of each bank's credit card business,credit card business has become the most profitable part in bank business in recent years.With the rapid development of credit card business,there are many problems.To make profits,primarily credit card business must achieve a certain scale of card issuing.All banks have launched a "Happy Valley enclosure" card issuing way to quickly occupy the market.Meanwhile,they promote all kinds of ways to attract customers.Such being the case,the mutual imitation of credit card products between banks has resulted in serious homogenization of products.Many customers,especially young customers,have many bank credit cards in hands.The function and amount of each card are almost the same.Most of the credit cards in their hands have become sleeper cards,which causing a waste of resources.It also exist problem of product homogeneity in Bank M.In order to stand out from the fierce market competition,it is necessary to study deeply the future development strategy of credit card business.By using PEST analysis method to study the current macroeconomic environment,and Potter's Five Force Model to analyze the industry competition environment,it concludes that there are both opportunities and threats in the current external environment.At the same time,the company's organization structure,the company's resources and capabilities are analyzed to know the advantages and disadvantages in the current environment.By using SWOT analytical method to analyze its advantages,disadvantages,opportunities and threats,and to analyze its key factors,we obtains several alternatives.In strategy selection,by using QSPM analysis,it is concluded that bank M should choose differentiation strategy in it's credit card business,and make implementation plan and safeguard measures.It is hoped that the research in this paper can not only provide guidance of the development strategy for bank M's credit card business,but also provide reference for the other banks,so as to promote the healthy and stable development of China's credit card business.