Research On The Competitive Strategy For Wealth Management Business Of E Securities

Since the reform and opening up,China’s economy has developed rapidly,promoting the accumulation of residents’ wealth and the increase of household disposable income.The introduction of the "real estate not speculation" policy has led to a rationalization of household asset allocation ratio,gradually increasing the proportion of financial asset investment,and people’s desire for asset preservation and appreciation has become increasingly strong.This provides domestic demand support and external environment for the development of wealth management business in China.The securities sector,as an important component of China’s stock market,has experienced intensified competition in recent years.The main source of income for securities companies to survive,namely "stock trading commission",has significantly decreased.Traditional brokerage business is facing challenges,which has prompted securities companies to seek new business growth points and sources of income.In order to guide the healthy development of financial institutions and meet the requirements of high-quality development of the national economy,the government regulatory authorities have recently introduced multiple financial policies to continuously strengthen financial supervision and deepen the degree of financial reform and opening up.Domestic securities firms not only need to face pressure from industry competition,but also need to compete with more mature foreign securities firms on the same platform.This will exacerbate the competitive situation in the securities industry and encourage securities firms to actively upgrade their traditional business models,Breaking free from the shackles of homogeneous competition,the pace of wealth management business transformation in the securities industry is accelerating.E Securities is a state-owned securities firm with a full financial license,and is one of the three innovative securities firms approved by the China Securities Regulatory Commission for the first time.It was also one of the top ten securities firms in China.After nearly 27 years of development,the company is currently facing a harsh competitive environment and pressure from a continuous decline in ranking.In order to reverse this trend,the company established a wealth management business unit in 2020,focusing on the company’s wealth management sector.This business sector is evolved from the traditional "ballast stone" business development of the company,and is the most important business sector for the company.The company hopes to achieve transformation and upgrading through wealth management business,Reshape the leading position in the industry.This article takes the wealth management business of E Securities as the research object.Firstly,using tools such as Porter’s Five Forces Model and PEST Model,it analyzes the macro external environment and industry environment of E Securities’ wealth management business,and identifies the opportunities and threats faced by business development;From the perspective of resources and capabilities,conduct an in-depth analysis of the internal environment and conditions of E Securities’ wealth management business,and identify its strengths and weaknesses.Secondly,this article uses EFE and IFE matrices to quantify and score the external opportunities,threats,and internal strengths and weaknesses faced by E Securities,which are sorted out from the above internal and external environments.Additionally,SWOT matrices are used to combine four strategies to develop alternative strategies.Then,based on the strategic objectives of E Securities’ wealth management business and QSPM matrix analysis,this article finds that "differentiated competition strategy" is the best competitive strategy for E Securities’ wealth management business.Finally,develop implementation and guarantee plans to ensure the effectiveness of E Securities’ wealth management business competition strategy execution.The implementation level mainly operates from four aspects: "service,product,customer,and marketing",and provides practical guarantees for implementation through four aspects: "organizational structure guarantee,human resource guarantee,platform support and risk control management guarantee,and corporate culture construction guarantee".It is expected that by formulating effective competitive strategies,E Securities will gain more market share in the current complex situation,thereby promoting the development of wealth management business and enhancing the company’s industry position.At the same time,provide some ideas for the development of wealth management business for securities firms in the same industry or scale.