Study On The Competition Strategy Of Retail Business Of Jinshang Bank Based On SWOT-QSPM Model

As China's economy has entered the transformation period,the profit growth of commercial banks is slowing down due to the slowdown of economic growth.As a result,the traditional profit model that relies on the loan difference cannot be continued,and the bank retail business has been paid attention by all commercial banks because of its asset-light and service-important feature,which is regarded as a new profit growth point.The competition in the retail market is becoming increasingly fierce.Jinshang Bank is a city commercial bank founded in 2009,which is reorganized from Taiyuan Commercial Bank.Its retail business was started late and its scale is small.There are many problems in the competition of the same industry.Based on the analysis of the internal and external environment of Jinshang Bank's retail business,this paper aims to establish the retail business competition strategy for Jinshang Bank,and to provide guidance and reference for its retail business development and competition.Relevant theories and analytical methods of strategic management and competitive strategy are used in the study.On the basis of the study on the external and internal environment of Jinshang Bank‘s retail business,the SWOT analysis method is used in this paper to conclude the opportunities and threats from external environment as well as the advantages and disadvantages from internal environment in the competition,which are regarded as the key factors of the competitive strategy.The external factor evaluation method matrix(EFE)and the internal factor evaluation method matrix(IFE)are applied to external and internal environment evaluation ofJinshang Bank retail business.QSPM matrix is used to select the basic form of the competition strategy adopted by Jinshang Bank and the SWOT analysis matrix helps to formulate implementation measures of the retail business competition strategy of Jinshang Bank.Besides,Analytic hierarchy process is employed to determine the weight of the key factors to the successful retail business competition strategy of Jinshang Bank retail business.The conclusions are as below:(1)The problems faced by the retail business of Jinshang Bank include:product design that lacks of characteristics and competition mode which mainly depends on “price war”;product-centered service mode rather than customer-centered service mode;unqualified segmentation and deep mining of customers as well as serious customer resource wastage;unsatisfying online and offline service;extremely low proportion of young customers,personal customer growth constraint and severe brain drain.(2)The opportunities for the retail business of Jinshang Bank in the external environment are: the support from local government,the wider personal market and service capacity improvement based on the advancement of science and technology as well as high-quality talent reserve.The threats from the external environment are: the price war brought by the interest rate marketization,the homogenization of interbank product service,the diversion of young customers by Internet finance,the threat of other cities and businesses in the same province,limited operation area and the talent scramble in the same industry.(3)The advantages of the Jinshang Bank's retail business in the internal environment are: the flexibility in the market reaction,the clear service orientation,the great potential of the existing individual customers and certain product innovation ability.The disadvantages are: weak product research and development ability,personal customer management platform limited by departments,weak comprehensive service ability of frontlineemployees as well as low ratio of effective customers and young customers.(4)Jinshang Bank's ability of seizing external opportunities and avoiding external threats in the competition of existing retail business is slightly over the average level in the industry,and its ability of giving play to and overcoming internal advantages is slightly lower than the counterparts in the industry.(5)The optimal retail business competition strategy form under the existing conditions is differentiation strategy.The strategy implementation measures are as below: paying attention to the customer demand and the localization of the product and service design actively based on the provincial market;strengthening the image publicity of the wealth management brand,“Promoting Wealth”,and creating the characteristic brand;improving customer management technology and building a unified customer information management platform;focusing on customer segmentation and providing customer-centered and differentiated services to customers;taking advantage of government support to lay county channels,improving online service channels and offering channel support to “service for urban a residents” based on scientific and technological progress;enriching the functions of direct selling banks and paying more attention to fashion orientation to attract young customers;building online learning platform to strengthen staff training and introduce high-quality talents.(6)In order to ensure the implementation of Jinshang Bank's retail business competition strategy,the supporting measures should include establishing the characteristic enterprise culture,establishing a marketing docking mechanism for interdepartmental key customers to strengthen public and private linkage,establishing excellent retail talent reserve,improving the level of science and technology,and improve risk control.