Research On The Competitive Strategy Of The Retail Banking Of The Agricultural Bank Of Ji'nan Branch

In recent years,with the steady growth of domestic economic development,the gradual increasing of people's disposable income and the continuous improvement of financial system reform,the banking industry is also experiencing continuous development and progress.As an important source of profits for commercial banks,the status and role of retail banking has been rising,and the contribution of profits has reached a higher proportion.But at the same time,with the deep promotion of interest rate marketization,the vigorous development of capital market,the continuous changes of external regulatory policies,coupled with the rapid rise of Internet finance and the serious problem of homogenization of financial products,the retail business of commercial banks is undergoing a severe test and the competition is becoming more and more fierce.The innovation and deepening of the retail business has become the focus of the commercial banks.Under the circumstances that the market share of traditional big banks is gradually being eaten away by the new commercial banks,Jinan Branch of Agricultural Bank of China,as an important participant in the local financial market,to gain more share in the future retail business market,must learn actively the advanced management experience of the West,look for a strategic approach to our own circumstances,enhance the ability of the joint marketing of retail business,market expansion and comprehensive profit creation of retail business to promote vigorously the sustainable development of retail business in an all-round way.This paper takes the Agricultural Bank of Ji'nan branch as the research object,using strategic management theory as a guide,mainly adopt literature research,comparative research,selection and implementation of questionnaire method and other methods to do research on the selection and implementation of the retail business competition strategy and the related security measures of Agricultural Bank of China Ji'nan branch.This paper first describes the characteristics and the significance of retail business of the commercial bank and the research result of domestic and foreign experts in recent years;then uses the PEST model,SWOT analysis,Potter five forces model,value chain analysis and the internal and external factors evaluation matrix as tools,this paper gives a detailed analysis of the macro environment,industry environment,internal resources and abilities that the retail business of the Agricultural Bank of Ji'nan branch is faced with.And finds out the external opportunities,threats and internal advantages and disadvantages.External opportunities are:the making of four centers of Ji'nan promotes the development of regional economy;the state promulgated a series of policies on financial stability;the state continues to support agriculture business;the residents' income levels continue to improve,and thus enhance the awareness of financial investment;the state attaches great importance to the training of financial personnel,and human resources reserve is rich;the improvement of science and technology promotes products and services upgrade.Threats are:competition pressure;product homogeneity;threat of alternative financial products;interest rate marketization leads to the compression of loan spreads;the bargaining power of customers has enhanced.The main advantages are:high brand awareness;many outlets,and abundant customer resources;perfect internal control system and management system;business variety,complete products;information management system is advanced;the marketing personnels have strong abilities.Disadvantages:the network layout is relatively unreasonable;homogeneous products are less competitive;professionals are in short supply;the performance assessment mechanism is not perfect;the service consciousness and service level should be improved;the efficiency of internal business examination and approval is low.Finally,the paper compares and analyzes the three basic strategies:the cost leadership strategy,differentiation strategy and focus strategy in the applicability,feasibility and other aspects,chooses the competitive strategy,the competitive strategy of differentiation suitable for Agricultural Bank of China Ji'nan branch retail business.Implements differentiation strategy through the difference of customer service,product innovation,channel construction,marketing strategies and other ways.And makes specific security measures:build brand image,build the enterprise culture;optimize the business process,construct the processing bank,strengthen the construction of human resources,strengthen the financial management,implement the overall risk management and improve the information system etc.This paper studies the competitive strategy of retail business in Jinan Branch of Agricultural Bank of China through the combination of theory and practice,hoping that it can seize the opportunities in the external environment,avoid the threats in the external environment,give play to its own advantages to make up for its own disadvantages,and can formulate the correct competitive strategy to win in the fierce competition and achieve greater development.Also,it can provide a certain reference for the same industry enterprises.