A Study On Enhancing The Competitiveness Of Shanxi City Commercial Banks

In recent years, city commercial banks in the development of competition at the same time thepressure is increasing, to enhance competitiveness is the basic means for the development of citycommercial banks. Based on the quantitative analysis of industry economics and game theory to theMerchants Bank, represented by research Shanxi Province, city commercial banks, in theestablished market structure of the banking sector in Shanxi Province, how to choose the reasonablemarket behavior and to enhance the competitiveness strategy problem.This paper first describes the background of the topics, research review, proposed theframework structure of the paper and describes the major research methods; select market share andmarket concentration index, combined with the banking data in Shanxi Province, Shanxi Province,the city the market structure of commercial banks face the empirical analysis, obtained ShanxiProvince, the banking industry is a monopolistic competition market structure, on the basis of clearmarket positioning of the Shanxi Province, city commercial banks, that the city commercial banksin Shanxi Province should be based the local community, based on the SME market share, based onthe community; again to explore the city commercial banks in the market structure of monopolisticcompetition in Shanxi Province price competition and product differentiation, service differentiation,and other non-price behavior, and the corresponding empirical analysis; Finally, from pricecompetition, non-price competition on the Shanxi Province, city commercial banks to enhance thecompetitiveness strategy.Analysis of market structure, market share, industry concentration (the CR4, CR8) to analyzethe market structure of the banking industry in Shanxi Province. Bain criteria for the classificationof market structure can be drawn: Shanxi Province, the banking sector is oligopolistic type IV, is tosay, Shanxi Province, the banking sector is gradually shift to the monopolistic competition market.And gives the city commercial banks should be based on the local community, based on primaryand secondary, community-based "market positioning.In the analysis of market behavior, described from two aspects of the behavior of productdifferentiation and service differentiation. Study of product differentiation, this article uses thetraditional Hotelling model to analyze the behavior of product differentiation, the results show thatthe inter-bank: city commercial banks only engage in financial innovation, and provide a differentiated product in order to obtain higher profits; this article also use simple dynamic gametree to analyze the inter-bank service differences in behavior, the results show that: the priority ofcity commercial banks in order to get higher profit margins, the need for service innovation, andgive priority to provide some sort of differentiated services, service innovation leader to providedifferentiated services.Strategy of the last to enhance the competitiveness of city commercial banks in ShanxiProvince, this paper focuses on price behavior and non-price behavior on the development of citycommercial banks within the Shanxi Province considerable discussion.