Research On Strategies To Enhance Competitiveness Of XC Microfinance Companie

Since the outbreak of the novel coronavirus epidemic,the global economic development has been seriously affected,and various industries in China have been impacted to varying degrees.In order to stabilize the national economic fundamentals,the country has issued a series of financial policies to increase the support of financial institutions to small and micro enterprises and individual consumer financial needs.The bank then increased the investment of inclusive loan products,lowered interest rates,relaxed approval conditions,and continued to sink.This has led to some customers who originally belonged to small loan companies turning to banks,resulting in the continuous extrusion of the living space of small loan companies.In the face of market shrinkage and market competition,how to improve the competitiveness of micro-credit companies has become an urgent problem for micro-credit companies to solve,but the competitiveness improvement strategy needs to clarify its own level of competitiveness and the gap between the main body of maintaining competitive advantage.The competitiveness indicators of microfinance companies refer to the competitiveness indicators of commercial banks,namely capital adequacy,asset quality,management level,profitability,liquidity and sensitivity to market risk points.The measures to improve the competitiveness of small loan companies need to focus on interest rates,capital scale,risk control,market expansion,non-performing disposal and other aspects.The strategy to improve the competitiveness of small loan companies is a comprehensive work.This paper takes XC Small Loan Company as the research object.XC Small Loan Company was established in 2009 and is subordinate to Chengdu CT Group,a platform of Chengdu State-owned Assets Supervision and Administration Commission.The company is located in Chengdu,Sichuan Province,and is the first batch of state-owned background micro-credit companies established in Sichuan.In the past two years,due to the impact of epidemic and other comprehensive factors,the development of XC microfinance company has been affected to a certain extent,and it is unable to maintain its competitive advantage in the region.Therefore,this paper focuses on the analysis of the lack of competitiveness and existing problems of XC microfinance company from the perspective of how to improve the competitiveness of XC microfinance formula,and proposes solutions and safeguards.Through the research of domestic and foreign literature,this paper mainly uses Porter’s competitiveness theory,analytic hierarchy process,comparative analysis and other theoretical analysis tools,from the perspective of the external environment of industry and regional competitiveness,and from the perspective of the internal environment of XC micro-credit company,combined with the existing competitiveness of XC micro-credit company and the competitiveness of other state-owned micro-credit companies in the target region,to propose a targeted competitiveness improvement plan,At the same time,the feasibility of the competitiveness improvement plan designed is analyzed by using theory and analysis tools.This paper hopes to solve the current practical problems faced by XC microfinance company through the research on the competitiveness improvement strategy of XC microfinance company.So as to promote the successful experience of the competitiveness promotion strategy in other microfinance companies,and enrich the case study of the management scheme design of microfinance companies.