Research On Competitive Strategy Of Brokerage Business Of Western Securities Company

In recent years,securities brokerage market has witnessed an enormous change.Internet securities business has gained considerable popularity,which eliminates the geographical limitations of traditional brokerage business and constantly pushes the industry average commission rate down.It is quite normal to find that price war and homogenous competition have become increasingly fierce.Along with the high market concentration,small and medium-sized brokers are under the great pressure of maintaining market share as well as gaining profits.As the most fundamental business,securities brokerage is the most crucial channel for securities companies to attract clients,which is deemed to be highly competitive.For Western Securities,a medium-sized comprehensive company located in western China serving the whole country,how to cultivate competitive advantages against the intense competition is fairly important for the company's development.Based on the competitive strategy theory and the development of securities brokerage business,this paper analyzes the external opportunities and threats as well as internal strengths and weaknesses of securities brokerage business,puts forward several feasible alternative competitive strategies after matching the analysis results with SWOT matrix,and finally selects an optimal strategy through the quantitative evaluation of QSPM matrix.The findings reveal that differentiation strategy is the most suitable for Western Securities to apply to its securities brokerage business.To begin with,the company should make full use of its available resources and capabilities,positively deal with changing circumstances and make proactive innovation to meet diversified clients' money management demands.Second,it is suggested to fill in the gaps concerning product R&D and investment advisory services so as to offer comprehensive wealth management services in a high-quality,individualized and client-centered manner.Third,the company should keep pace withthe times,intensify fintech investment,conduct layered client management and develop differentiated products and services via fintech tools such as AI,intelligent advisor and so on.Finally,to realize differentiation strategy,organization structure should be adjusted,including cultivating qualified talents,establishing professional operation support platform and putting emphasis on corporate culture.