Research On Strategic Environment Analysis And Selection Of SH Securities Company

The entire market capitalization of China’s stock market ranks second globally.The capital market is vital for the growth and development of a contemporary industrial system.With the implementation of new capital management regulations,registration system reform,and the New Securities Law,the complete deepening of capital market reform will continue,and the policy dividend is clear.The securities sector is in an important phase of growth.Yet,our country’s securities firms’ business models have been substantially homogenized.Top securities firms seek all-round growth and the tendency of centralization is continuously increased.International securities firms enter progressively and industry competitiveness is heightened.SH Securities is a significant brokerage firm that faces a complicated market environment and intense competitive pressure even though its total size and overall strength place it at the top of the domestic securities industry.If a company wants to improve its position in the industry under current stage of deepening of the capital market reform,it must analyze its own advantages and disadvantages as well as opportunities and challenges,seek the right strategic direction,and fortify its own competitive advantage or core competency to grow and expand in the future capital markets.This thesis presents the theoretical foundation and associated analytical tools of strategy and strategic management,as well as the most recent research findings on the corporate strategy of securities companies in China and overseas.The author describes the fundamental position and operations of SH Securities,investigates and researches the company’s strategic difficulties,and presents a strategic analysis.This thesis employs a PEST analysis to examine the macro-environment of SH Securities,including the policy environment,economic environment,social environment,and technological environment.This thesis uses Michael Porter’s Five Forces Model to analyzes the competitive pattern in the securities industry and constructs EFE and IFE models using questionnaires.This thesis also utilizes SWOT analysis to form the SO portfolio strategy,WO portfolio strategy,ST portfolio strategy and WT portfolio strategy of SH Securities.Eventually,this thesis uses the QSPM matrix to conduct quantitative and qualitative analysis on the four types of portfolio strategies,drawing the conclusion that the company is lack of characteristic business model in the current competition.The traditional sector accounts for a high portion of company’s business,has low innovation capability and shows weak competitiveness.The company’s business development is not balanced.This thesis also draws a conclusion that The company has weak digital operation capability,lacks financial technology empowerment and internal synergy efficiency.This thesis suggests that the corporation should implement the WO portfolio strategy,which includes the digital strategy,innovation strategy,and coordinated development strategy,since the gap with best is rapidly widening.Finally,the strategic implementation and precaution plans for SH Securities has been established in line with the implications of digital strategy,innovation strategy,and co-development strategy.The specific implementation plans include:first,Accelerate digital transformation,platform construction and intelligent application;second,Cultivate innovation-oriented corporate culture,risk control and investment research teams;and third,Promote information sharing and benefit sharing.The specific safety precaution plans are as follows: firstly,enhance organizational design and system operation for greater effectiveness;secondly,boost information technology input for technical support;thirdly,implement human resource reform to assure the availability of talent;fourthly,foster a unified and customer-focused company culture;and fifthly,enhance the risk prevention system to provide compliance protection.The purpose of this thesis is to perform a comprehensive examination of SH Securities and build an acceptable corporate strategy for it.This thesis also intends to help the company bridge the gap with leading brokerage firms and ultimately become the leading brokerage in the securities industry.In addition,this thesis can be utilized as references for other securities firms’ development.