The Management Strategy Study Of Chengdu Ping An

Chinese insurance industry is at the preliminary phase of development; this paper indicates that, since China has become a member of the WTO, the opening up of insurance market certainly will result in the coming in of foreign insurance enterprises. Meanwhile, as new domestic insurance companies continuously appear and the uncertainties of the market grow, the competition becomes fiercer than ever before. Though the insurance regulatory authority is adjusting its policies and methods to meet the sound foreign management system, customers are diversifying their demands; the market is constantly dividing and proliferating.Established in 1993, Ping An Insurance Property & Casualty Company Ltd. China, Chengdu Branch has developed, within 10 years, from an office into a provincial insurance enterprise, ranking second in Sichuan insurance market. However, faced with such a fast changing market, how can Chengdu Ping An become more competitive, make more profit through proper management and efficient operation and keep fast and stable development?In the first part of this paper, there is a review of the development of relevant strategic management theories.The development of strategic management theories is generalized in to three aspects by Professor Michael E. Porter, who introduced the idea of strategic orientation and the famous method-five underlying forces of competitiveness in his well known works Competitive Strategy and Competitive Advantage. Cost leadership, differentiation and focus have become the three generic competitive strategies.In the 1990s, Pleyharold and Hamel brought forward the strategic thinkingmodel for dynamic competition as well as the resource of competitive predominance- the capacity of incorporating technologies and productive skills in terms of the management level within the corporation to adapt various businesses to the changing opportunities.In view of the three interactional arrangements of the strategic management-the overall strategy of the corporation, career strategy and functional strategy, this paper analyses insurance companies the use of various strategies in the development of their own.In the second part of this paper, the analysis of the currant insurance industry is made from the point of view of Ping An Insurance Property & Casualty Company Ltd. China, Chengdu Branch. It points out that many problems will appear in the preliminary booming period of Chinese insurance industry. Therefore, Ping An, in the macro industrial atmosphere, will come across the same problems as well.In the third part, it analyses the relation of the macro economics and insurance industry, the insurance policy and regulatory factors as well as the demand of insurance market in terms of the market that Ping An is facing. It concludes that Ping An has great developing opportunities in such a market.In the forth part, in terms of the competitive environment, it analyses the internal and external threats and opportunities of Chengdu Ping An by the means of SWOT model. It therefore concludes that Ping An should adopt the differential integrative strategy with innovative strategy as its core, in order to take the opportunities and avoid threats.In the fifth part, it discusses how can Chengdu Ping An carry out the differential integration strategy with innovative strategy as the core to fulfilled its operational strategic adjustment in developing new products, new service and sales channel conformity.At the end, it concludes that Chengdu Ping An should improve its competitiveness, realize the sustaining development of the enterprise and carry out the differential integrative strategy with innovative strategy as the core.