Research On The Development Strategy Of Bank Of China Co., Ltd. Baotou Branch

The Corporate strategy is the overall planning for achieving the goal of business development.In order to gain long-term and stable development and promote competitive advantages constantly,companies base on their external environment,internal resources and capacities.If modern companies want to achieve sustained and high-speed growth,it is necessary for them to need a strategic objective.According to environment analysis and self-understanding,companies set strategic objective fitted themselves,carry out strategic planning with strategic objective,and develop appropriate evaluation mechanism to assess implementation effect of strategy.As rapid development of economy,our country' s economic environment is complex and financial industry is full of fierce competitions,state-owned joint-stock banks which have been in the critical period of development,not only face unprecedented opportunities,but also subject to many challenges.In such circumstances,it is necessary for banks to set the development strategy fitted themselves.The author sets Baotou branch,Bank of China as study object of his paper and analyzes Baotou branch' s external environment-Baotou's economic development,its financial environment and status of Baotou branch by External Competition Model.According to the analysis,the author points out the risk of potential competitors,competition intensity of existing enterprises,bargaining ability of buyers,bargaining ability of suppliers,similarity of substitutes and these external features' influence on Baotou Branch.Then,the author introduces Baotou branch's internal environment-business culture of Bank of China,situation of direct leader,constitutions of internal resources,capacity of resource allocation and core competitiveness,which are studied by SWOT analysis method.This method helps to understand the opportunities,challenges,strengths and weaknesses of Baotou branch.After investigating the external and internal environment,analyzing SWOT and comparing three currency strategy-Cost-leading Strategy,Difference Strategy and Concentrating Strategy,the author considers that Baotou branch should carry out Cost-leading Strategy.Cost-leading Strategy is that banks can obtain competitive advantages from competitions by improving productivity and efficiency,eliminating waste and controlling cost to achieve lower cost than competitors.The key to carry out Cost-leading Strategy is lowering fund cost,risk cost,capital cost and operation cost.Finally,in order to compare the deviation between strategy goal and actual effect,to control the failure of Baotou branch's strategy,the author provides strategy control and methods of revising strategy.