Research On Competition Strategy Of Small And Medium-sized Enterprise Service For Shandong Branch Of Bank Of China

The credit risk has expanded from Yangtze River Delta to Shan Dong province since 2014. The commercial bank of the province has taken different strategies in face of risk events. Some chose to wait and see, some kept on developing, and there were also some which cannot wait to exit the small and medium enterprise market and make the financial environment worse. Facing the huge challenge form the bad economic climate and restrict conditions, how could Bank of China do to adjust business development direction and change competitive strategy with traditional business advantage for SME service? It is a complicated and difficult research.This research reviews the theory of competitive strategy and SME financing, analyses the macro and industry environment with PEST analysis and the five-force model, and make EFE matrix established. This research also analyses the resource and ability of Bank of China SME service, states the present situation and human resources, and make IFE matrix established.The research performs a SWOT analysis to tell the strength、weakness、opportunity and threat. And it makes a comparison of three competitive strategies. At last, the author think of the differentiation strategy the best choice for Bank of China SME service. The implementation of the strategy need some changes of Bank of China, such as talent tesm construction, organizational structure reform, credit policy optimization, and enterprise cultural construction.