Research On The Development Strategy Of Z Bank In China

The entry of foreign banks into China has had a far-reaching impact on China's financial industry since 19~thh century.From the macro level,foreign banks have promoted the modernization process of Chinese banking industry.Meanwhile,they also lead to the high competitive in the industry.From the micro level,those foreign banks have brought advanced management and operation experience to China,trained a large number of high-quality talents,which make a contribution to the professional talent pool for Chinese banks.China's financial industry is still speeding up the pace of opening up to the world,Chinese banks now occupy an absolute dominate position in China,the scale and market share is quite limited for foreign banks.It is important for every foreign bank in China to find a proper way to develop their own unique advantage and increase the profits.This article uses the case study method to carry on the research to the development strategy of Z foreign bank in China.In the course of the research,we collected the annual reports,various kinds of announcements,archival documents of the industry and Z foreign bank.With these documents,we use SWOT,PEST and Michael Porter's five forces module to analysis the target bank.Try to focus on the disadvantages and make some advice on the development strategy.Through the research,we found below outstanding problems for Z foreign bank:Firstly,the branch network is extremely weak compared with Chinese banks,which is one of the main reasons cause the limited market in China.Secondly,the operation cost is quite high,especially on human resource cost.Thirdly,digital products are way behind Chinese banks,which do not fit the expectation of Chinese clients.To solve those problems,we suggest Z foreign bank to keep digging its own advantage,develop a creative and differentiating strategy to gain competitiveness,and put more financial and human resources in digital and the entire China market.The paper could provide theoretical support for the development strategy making for Z foreign bank in China,as well as reference for other foreign banks in China.