The Application Of The Theory Of Competitive Dynamics To Analyze The Structure Of China’s Credit Card Market

Credit card is a special product offered by commercial banks also stamped with economic characteristics of both investment and consumption. And China’s credit card market is experiencing and remains to keep a big growth rate even in financial crisis. Especially, the years from 2007 to 2012 witnessed China’s credit card market booming in terms of accumulative issued cards volume and marketing strategies. This thesis tries to seek for some most effective ways for banks to raise market share and make differentiated recommendations for both leaders and laggards. Also it proposes and tests several assumptions to explain how strategic actions affect the fluctuation of market share gap between two groups of competitors.After careful review of several mainstream competition analysis theories, this thesis makes use of competitive dynamics theory to explain the relationship between market share distribution and strategic actions’ intensity, diversity and differentiation. Furthermore, when facing missing data in retrospective data collection, we introduce a statistical method composed of linear average and comparable estimations.As found in this research process, market share distribution depends on large volume of competitions with high quality, meaningful diversity, conditional differentiation and effective implementations.