| In an environment with ever fierce competition and continuously declining brokerage fee, security brokerage business in China is seeing tougher competition and brokerage service in securities companies are facing challenges to make the right strategic decisions for their operating modes. Security Trader A is having a series of problems such as brokerage service too extensive and general, confined stereotype business practice and luck-dependent. By combing the Theory of Competition for business operation strategies and the three operation competition strategies of Michael Porter, this essay applies analysis tools like PEST, Porter’s Five Forces and SWOT to conduct an in-depth analysis on both internal and external environments surrounding Security Trader A, then drives to the operation strategies that are suitable for Security Trader A. Further more, taking Security Trader A’s actual situation into consideration, this essay proposes detailed measures for it to carry out differentiation strategies an overall cost leadership strategies.Firstly, this paper sums up the general points of the Theory of Competition of business operation strategies and brings focus to the three operation competitive strategies of Michael Porter, laying the theory foundation for the analysis of the operation strategies of Security Trader A. Then the paper introduces the general situation of Security Trader A and utilizes PEST, Michael Porter’s Five Forces Model and SWOT to analyzes in details the macro-environment, external industry competition and internal operation that Security Trader A faces.The fourth section of this paper focuses on the operation strategy decision that Security Trader A has to make. Expatiating on guiding theories, strategic goal and strategic choices, this paper sets out the operation strategies for Security Trader A:differentiation strategies an overall cost leadership strategies.This paper then discusses from various perspectives the detailed measures on strategic operation for Security Trader A’s brokerage service:to provide unique service with consideration of service cost and commission level and to offer differentiated service based on the advanced CRM(Customer Relationship Management) platform. For example, to establish customer service platform "Road to Fortune"with Security Trader A’s own features and to divide its customer service to four levels:fortune passage, fortune information, fortune book and fortune manager, which provides differentiated service from basic to high-end to its customers, thus realizing profits from its differentiation service, unique service and value-added service. Meanwhile, it needs to set up a service strategy with "increase competence for professional service" as its core, integrating resources and streamlining procedures to establish a customer service system and management system that centers round its investment consultants, and creates value by implementing the investment consultancy system and attracting customers with its professional service. Secondly, to develop its own business features to gain more customer resources, attract more incremental customers and increase profit by controlling cost and adopting creative marketing model like marketing via microblog and via contests such as "Road to Fortune" King of stocks. Thirdly, raising its economic benefits by building a technical platform to enrich its off-site transaction channels, and by improving its operation system on investment consultancy and wealth management. Lastly, to implement the differentiation strategy and overall cost leadership strategy, it needs to bring in and cultivate professional talents with high quality as well as carrying out stimulative remuneration management system. |
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