Research On The Strategy Of Product Competition In Commercial Bank

Begin with "Ericsson-panda's changes sides in the war of banks" and "City Corp Fee". The dissertation discussed the real content and corresponding strategy in bank competition. First we define the concept and discuss current situation of product, reason of our bank's product. Then we analyses some theory about product such as product life cycle, scale economy, scope economy and marketing theory, because they infect the bank's cost and revenue directly/indirectly, permanently/temporary. At last we analyses innovation of bank product with game theory and give a model. The model denotes why banks innovate and which bank innovates. We forecast the product innovation. The dissertation concludes that our commercial banks don't have the incentive in product innovation and scale economy but have scope economy. We should reduce bank branch, develop product as many as possible and improve service quality in the competition.