Research On The Development Strategy Of H Bank

In recent years,China’s economic development has been stable and improving,providing a good development environment for the domestic banking industry.The overall scale of the banking industry has continued to expand,profits have maintained steady growth,asset quality has continued to improve,and capital adequacy has continued to improve.Although the overall development trend of the banking industry is good,the performance differentiation of banks is also obvious.As a member of the third echelon of national joint-stock banks,H Bank’s business development once stalled due to historical business risk events.Under the leadership of the new leadership team,H Bank finally stepped back on the right track of development in 2019,and various business indicators returned to normal,but there is still a big gap compared with the average level of the industry.Facing the increasingly complex international and domestic environment,H Bank urgently needs to formulate a clear development strategy to determine the future development direction,improve its competitiveness quickly,and catch up with the average level of the industry as soon as possible.The formulation of enterprise development strategy requires comprehensive consideration of the influence of multiple factors in the internal and external environment of the enterprise.Based on the industrial organization theory,this paper firstly conducts a detailed study of the external macro environment and the competitive environment of the industry for the development of H Bank using PEST analysis and the five forces model.The study finds that the macro environment for the development of H Bank is full of various opportunities as China’s economic growth continues to recover,regulatory policies focus on guiding banks to reduce costs,and financial technology injects new vitality into the development of the banking industry,although there is still a gap between the comprehensive strength and brand influence of H Bank and other joint-stock peers,and the policy interest rate remains low to guide financial institutions to increase their efforts to benefit the real economy,the overall external opportunities for H Bank are greater than the threats.Secondly,based on resource-based theory and core competency theory,this paper carefully explores the internal development environment and the strengths and weaknesses of H Bank.The study finds that H Bank insists on improving its corporate governance mechanism,focuses on organizational culture,and forms a strong synergy of concentrated power to do great things.However,H Bank’s excessive reliance on price marketing and traditional corporate finance business has led to its weak cost management ability and business structure in need of optimization,and its attractiveness to high-end talents and independent IT capability are also lacking,and overall H Bank is at a relative disadvantage internally.According to the relevant conclusions drawn from the analysis of the internal and external environment of H Bank,this paper uses SWOT matrix and QSPM matrix analysis to finally determine that it is best for H Bank to adopt the turnaround development strategy.In view of H Bank’s development disadvantages such as low proportion of retail business,weak cost management ability,over-reliance on "price marketing" and weak customer base,this paper believes that the implementation measures of H Bank’s turnaround development strategy should focus on consolidating the basic skills of bank operation and development,strengthening customer infrastructure construction,focusing on the main business of the bank,and increasing the proportion of retail business through retail business transformation,strengthening cost management,do a good job in the refinement of cost management,and gradually reverse the development disadvantage.In terms of safeguards for the development strategy,H Bank should continue to strengthen risk compliance management and improve asset quality on the basis of its own organizational and cultural strengths,while taking effective measures to compensate for its shortcomings in the attractiveness of high-end talents and the independence and autonomy of information technology,so as to continuously improve the safeguards for the implementation of the development strategy.This paper provides some reference for the adjustment and implementation of H Bank’s development strategy,and the research process and conclusion of H Bank’s development strategy also have certain reference significance for other national commercial banks.With the rapid changes in the domestic and foreign economic environment and the development environment of the banking industry,it is necessary to timely review and adjust the strategy,constantly improve the scientificity,rationality and feasibility of the development strategy,and verify the research conclusions in practice.