The Research On Competitive Strategy Of PICC Property And Casualty Limited Shandong Branch

Since the beginning of the 21st century, with the rapid development of the national economy and the arrival of the new round of economic growth cycle, Chinese insurance industry has already become one of the important sectors that determine the overall development of economy and society. According to China's promises when joining the WTO, China's property insurance market will open to the outside world in full scale in 2006. The property insurance market will still be competitive in terms of price, and at the same time, the competition will gradually extend to such sectors as products, services, management, brands and technology. The fierce competition which is much more intensive in degree and extensive in realm will have to be faced up by large-scale China-invested property insurance companies.PICC Property and Casualty Company Limited, Shandong Branch, is in the leading position at Shandong property insurance market in terms of services, personnel, network as well as brand. However, because of the competition of Shandong property insurance market becoming fiercer and fiercer year by year, the coming of more and more property insurance companies as well as its inner problems, Shandong Branch is suffering from a decreasing market share year by year, a gradually declining marketing performance and a serious loss of talents. Accordingly, its status and importance in Shandong property insurance market has been weakening, its market discourse fight has been undermined, and the risk of being marginalized becomes gradually obvious. This article made a thorough analysis of Shandong property insurance market in accordance with the relevant theories of Strategic Management, and then put forward the competition strategy as well as its application plan on the basis of the actual conditions of PICC Property and Casualty Company Limited, Shandong Branch, the purposes of which are to face up the challenges of competition, to increase the market share, to enhance its profit-making capacity, and to expand its leading edge in Shandong property insurance market. This article first made an intensive investigation into the outer environment of Shandong Branch, including its overall situation and market development trend, and found out its opportunities and threats with EFE, indicating that its advantages lie in the aspects of market share, brand image, structural network as well as insurance techniques, while its disadvantages consist in the service consciousness, product structure and profit-making ability. And then, this article, by means of SWOT analysis, value-chain analysis and General Competitive Strategy Model, combining the company's opportunities and advantages, indicated that diversification strategy was the inevitable choice of Shandong Branch. Afterwards, in the application designing of the strategic plans, this article indicated that the key link of diversification strategy lies in the innovations of products, sales channels and services. Finally, the article expounded the guarantee measures for realizing the competition strategy, including restructuring, reforming personnel management, laying a solid foundation of infrastructural management, establishing the advanced information management network as well as deepening entrepreneur cultural construction.