Research On The Division Of Strategy Group And Alliance Selection Of Banking Industry In China

In the view of industry organization theory, Michael S. Hunt proposed a concept about strategy group: strategy group in 1972. Professor Porter made another concept in 1980 : the companies which use same or similar strategy in one industry. Since that, the research on strategy group has made significant progress.Along with development of globalization and financial reform, the banking industry in China has shown this phenomenon: varieties of banking business, co-existence of foreign banks and Chinese banks, cooperation and competition among different kinds of banks. All of these will promote better development of society and economy. In internal market, as the capital market is gradually perfecting , the channel of companies' financing and inhabitants' investing becomes more complicated, this will cause 'Diffluence effect' of capital in commercial banks. As a result, the competition among banks become more fierce, Strategic Alliance will be the key point of commercial banks' strategic choice in the future. Through deep research, this paper will show : whether or not the strategy group exists in commercial bank industry, if so, how different strategy groups perform in strategy-making , strategy-implementing factors, and then , we will utilize the strategy group as analyzing tool ,using strategy alliance to provide development channels.This paper firstly use the porter' s "five power" model to analyze the circumstances of banking industry. After that, we will choose big banks as the sample, based on the primary and alternative variables analyzing method, we divide samples into different strategy groups. Compared with the real conditions of samples, we can find that further data analyzing proves the existence of strategy group. Although the specific strategies are different, the way of alliance is similar. At last we conclude that our nation's banking industry needs more strategy alliance operation and should enhance the development of scale, safety, liquidity and profit ability ,promote the development of core competition ability, strengthen the foundation of mixed operation in financial industry, keep it stable and sustainable.