The Study On Development Strategy Of Beijing Rural Commercial Bank

Beijing Rural Commercial Bank (BRCB), the predecessor of Beijing Rural Credit Cooperatives, has a long history of more than60years. Since the restructuring of BRCB in October2005, great changes have taken place in the business environment. BRCB faces new opportunities and challenges. In the increasingly competitive environment of the financial market, state-owned banks, the national joint-stock commercial banks and foreign banks continue to seize the market. Rural commercial banks, as a small and medium sized commercial bank, belongs to the weaker group in competition. In order to survive and develop in the fierce competition, BRCB have to develop practically developing strategy according to its own characteristics. Thereby BRCB could gain a competitive advantage in the future market competition. It’s the focus of this study.The thesis research is about Beijing Rural Commercial Bank development strategy analysis according to the strategic management theory. In this paper, the author uses the method of PEST analysis, SWOT analysis and five forces model analysis to carry out a detailed analysis of BRCB’s environment. The analysis helps to formulate banking development strategy. The Pest analysis method is about the external environmental factors of BRCB by analyzing political, economic and social environment. From the PEST analysis, we can predict the developing trends, determine or adjust business strategy. Discussion on the internal environment by SWOT analysis shows BRCB’s external opportunity and threats, and internal strengths, weaknesses. It helps BRCB stand out in the new economic situation in the fierce banking competition. Porter’s five forces model analyzes the banking industry environment, exploring effective strategies to deal with the fierce competition. Based on the above analysis, BRCB needs to implement the strategies of bank branch transformation, intermediate business upgrades, science and technology upgrades, specialty of branch and other strategies in order to achieve long-term development. That is the necessary conditions of "building quality banks","doing fine and excellent business outlets","do bigger and stronger banking branches". The systematically study of BRCB development strategy effectively promote the combining of strategic management theory and practice of banking management. It gives some guiding reference on BRCB’s long-term stable development.