Research On Competition Strategy Of Jiyang Rural Commercial Bank

In recent years,with the proposition of the national strategy of revitalizing the countryside and the promotion of the old and new kinetic energy conversion policy in Shandong Province,more and more attention has been paid to the present situation of rural finance in China.The rural financial market presents a new situation in which a hundred flowers blossom and a hundred schools of thought contend.Jiyang Agricultural and Commercial Bank is based on the former Jiyang Rural Credit Union.Established in 2012,as the financial institution with the largest number of employees,the widest distribution of branches and the longest history,it is the most important financial force in Jiyang.It pays more than 50 million taxes annually,which has made a significant contribution to the local economic development.However,the bank has long been lacking a clear competition in the fierce competition among the same industries.In addition,with the improvement of local economic openness,new financial institutions such as city commercial banks and village banks are constantly stationed,and the competition in county financial markets is becoming increasingly fierce.In view of the changes of the external environment,the need of the bank’s own development and the urgency of coping with the fierce inter-industry competition,this paper takes Jiyang Agricultural and Commercial Bank as the object to study the related issues of its competitive strategy.The main problem studied in this paper is the determination and implementation of the competitive strategy of jiyang rural commercial bank.Based on the investigation and research,the external environment and internal resource capacity of jiyang rural commercial bank were analyzed,key factors were identified,advantages and disadvantages,opportunities and challenges were summarized,and competitive strategies suitable for the development of jiyang rural commercial bank were selected.The advantages of jiyang rural commercial bank are mainly reflected in the following aspects:rooted in the local area,serving agriculture,rural areas and farmers,and possessing the natural advantage of information symmetry;As a county-level legal person,major decisions have strong flexibility;Rural commercial Banks in rural areas have a relatively mature operating system;Brand effect has achieved initial results;The old account manager is familiar with the credit of his customers and the production and operation;In terms of hardware,with the progress of scientific and technological research and development capability,the gap with the five major Banks and urban commercial Banks has been narrowed.Disadvantages are mainly reflected in the following aspects:the deposit and loan spreads continue to narrow,and the main business profits continue to decline;Rural commercial bank has not established and cultivated its own corporate culture systematically.Although it has been reformed into a joint-stock commercial bank,the corporate governance is not perfect;Business operation innovation is not enough,the form of operation is single;Backward means of service;There is a large credit risk burden,risk management lags behind.Opportunities are mainly reflected in the following aspects:during the 13th five-year plan period,many infrastructure construction projects of jiyang county government created conditions for agricultural and commercial Banks to absorb deposits;Most of the customers in the county market are small,medium and micro-sized enterprises.In terms of financing and investment,win-win situation exists between Banks and small and micro-sized enterprises.A large number of credit funds in the strategy of rural revitalization are provided by jiyang rural commercial bank.Jeyang county government injected capital into rural commercial bank to become a shareholder,and strengthened the policy support;As a result,the economy runs well,laying a solid foundation for the steady development of the rural commercial bank of China.The main threats are as follows:as a traditional local financial institution,jiyang rural commercial bank is mainly invested in agriculture-related loans.Once a variety of natural disasters and other force majeure factors occur,rural commercial bank will inevitably be the ultimate passer and bearer of risks.Rural commercial Banks are traditionally small,micro and loose.Although it disperses some loan risks to some extent,it objectively increases the difficulty of loan management.In recent years,jiyang has entered many new urban commercial Banks and village Banks in other cities and provinces in the province,such as qishang,rizhao bank and beihai village bank,etc.,and the existing financial market share will be eroded by those foreign resident institutions that do not have bad burdens and carry out operations lightly.Based on the analysis of the internal and external environment of the enterprise,the research believes that jiyang rural commercial bank should implement the centralized competition strategy.That is to say,on the basis of focusing on the target market of"agriculture,rural areas and farmers",and on the premise of four market-oriented positioning for agriculture,rural areas and farmers,small and micro enterprises,communities and county economies,product differentiation and service differentiation should be implemented to effectively differentiate from competitors,while appropriately reducing operating costs and gaining market advantages.The functional strategy includes:in the marketing strategy,adhere to the target market customer group,clear enterprise and product positioning,adopt differentiated credit products,interest rate policy,guarantee means of product strategy and service strategy;In the financial strategy,strict control of costs,reduce costs;In terms of human resources strategy,it is necessary to train excellent talents to enter the reserve talent pool and improve the performance appraisal incentive mechanism.In the strategy of information science and technology,we should strengthen the investment in information technology,accelerate the research and development of new products,and practice science and technology.In order to ensure the effective operation of the competitive strategy,supporting measures have been developed,such as optimizing the organizational structure and unimpeded channels for business development.Improve efficiency and establish process Banks;Strengthen the construction of enterprise culture,improve the cohesion of employees.The research of this paper not only clarifies the competitive strategy for the Agricultural and Commercial Bank of Jiyang,but also helps to improve the core competitiveness of the bank,and provides the development ideas for building the best and the leader in the county financial market;at the same time,it also provides the operation and management of the relevant enterprises in the same industry or other 110 brothers of the legal entity of the Agricultural and Commercial Bank of Shandong Province.It can be used for reference in the selection of market competition strategy or can provide a reference model,which has a certain guiding significance.