Study On The Competitive Strategy Of H Financial Group’s Microfinance

In recent years,with the increasing competition in the microfinance market,some microfinance companies lack a deep knowledge and understanding of the financial regulations and risks,the management style is lax,the ability of wind control is insufficient,the non-performing rate climbs extremely fast,the profitability shrinks sharply,making the enterprise liquidity difficult,leading to a continuous decline in the number of microfinance companies in the market.At present,the microfinance industry is still in the process of regularizing,the situation of strict supervision in the future will continue,the number of companies in the industry may continue to decline,the development space of the microfinance business has been squeezed,the industry has entered a "confused" period.How to formulate the competitive strategy of the microfinance business,examine the market situation,demand and its own advantages and disadvantages,and formulate the market strategy corresponding to its own development is an important subject for the development of the microfinance enterprises under the conditions of strict supervision,imperfect macro environment and intense market competition.Taking H financial group’s microfinance business as the research object,based on a great deal of literature and combining with the theory of competition strategy,this paper summarizes the practical experience and theoretical achievements of enterprise strategic planning,analyzes the internal and external environment,industry competitive environment and so on,helps enterprises define the development goal and market orientation of their microfinance business,chooses the competitive strategy in accordance with their own characteristics,and also provides some reference opinions for micro-finance companies in market competition and strategic transformation.After the research,this article thinks: in the choice of the competition strategy,H microfinance business should put the rapid and stable development first,at the same time strengthen the core competitive advantage,combine own resource advantage,choose the differentiated competition strategy.First of all,take advantage of the quality background and social resources of the company’s shareholders to establish cooperation with banks,trusts,funds and other financial institutions to obtain lower-cost funds.Secondly,we should make full and effective use of the old customer resources accumulated in the past,and build a high quality customer resource reserve based on this.Thirdly,based on the existing business development,realize the development and expansion of innovative financial products;Finally,adopt lean management mode to improve the efficiency of cost management,human resource management and fund management.In the implementation of the competition strategy,we should first improve the talent management mechanism,absorb more talent resources and improve his core competitive strength.Secondly,we should improve the internal governance structure,improve brand name recognition,and strengthen the company’s own anti-risk ability while protecting the company’s interests.Finally,we should build an information platform to provide technical support for business,make more use of social information networks,build a diversified computing environment in the background,and improve our ability to collect and process big data.