Research On The Competitive Strategy Of G Securities Company’s Stock Option Business

Stock options are an important risk management tool in the capital markets and play a very important role in improving pricing efficiency,reducing transaction costs and stabilizing the security market.Since 2022,conflicts between Russia and Ukraine,interest rate hikes by the US Federal Reserve,repeated pandemics in China and Silicon Valley bank failures have significantly increased volatility in the Chinese stock market.Correspondingly,there has also been a marked increase in the demand for risk management,with stock options popular among investors.At the same time,with the gradual relaxation of financial regulations,the variety of stock option business has gradually increased,and the stock option business has become an innovative business pursued by securities firms and futures companies.G Securities,a leading brokerage firm in China,has been actively promoting the development of its stock option business since its listing in 2015.G Securities’ business has also grown rapidly thanks to the rapid growth of its stock options business in the early stages of the market.However,in recent years,industry competition has intensified and service homogenization has been severe,which has made G Securities face great challenges in its business development.How to capture business development opportunities and meet challenges is key to the development of G Securities’ stock option business.In this paper,we focus on the stock option business of G Securities.On the basis of theories related to competitive strategies,we analyze the external environment faced by G Securities’ stock option business using questionnaire surveys and interviews as well as PEST analysis tools.The opportunities and challenges facing the development of the stock option business are summarized through the analysis of the Strategic Group and Porter’s Five Forces model.By analyzing the resources and capabilities of G Securities,the strengths and weaknesses of its stock option business in the market competition are summarized.A comprehensive analysis of its elements is performed with the help of SWOT analysis.After identifying the strategic positioning and objectives of the company,the feasibility of different competitive strategies is analyzed and the different competitive strategies are selected for the company via the QSPM matrix.Finally,the implementation plan of the differentiation strategy is suitable for the company to play to its strengths,including differentiation in positioning,differentiation in customer classification,differentiation in products and differentiation in services.It also propose to optimize organizational structure,strengthen personnel training,improve evaluation system,increase the intensity of research and development and financial cost guarantee strategy,and implement related safeguard measures.