Penetration business strategy for financial industry after cross-strait MOU
¡Ð A case study of F bank, Taiwan.
Abstract
The cross-strait financial industry will change significantly after the Memorandum of Understanding (MOU) signed by Taiwan and China on both cooperation and competition end of the spectrum, and the entire financial industry including individual financial institution will need to adjust its business strategy to survive in the post-ECFA Era. One individual financial institution requires an all-rounded strategy regarding every aspect to penetrate into China market surrounded by many Chinese banking competitors.
In this regard, this study, the business penetration strategy into China financial market for Taiwanese financial institution in case of the F bank, Taiwan, analyzed and discussed the best suited business strategy, and how such strategy should be implanted and executed. In order to do so, this study analyzed different circumstances under not only the macroeconomic environment and the regulation, but also by various business strategy models form PEST, business competition, SWOT, RBV, to statistical analysis with different projected future scenario given, to understand which will be the optimal solution for the F bank to penetrate into the China market. Nonetheless, the study further analyzed the details of the optimal solution from where the first business unit should be setup, to what regard the service should include, and also who the target customers are with CEPA¡¦s historical experience as reference.
The study showed that the F bank should remain focus on Taiwanese corporations in China and setup the first several branches and subsidiaries accordingly; nonetheless, the Strait-West district (®ü¦è¯S°Ï) could be a suitable fit if it provides a better options to Taiwanese banks. As for the range of the service and products mix, the F bank should first focus on corporate banking, especially to satisfy the capital needs from Taiwanese corporations, and then gradually move forward towards securities service utilizing its subsidiaries¡¦ resources. Furthermore, because product development will be the key to F bank¡¦s expansion, it is crucial to demonstrate the product innovation ability to impress F-bank¡¦s local customers.
On the other hand, lack of financial service in the Big West region¡]¤j¦è³¡¡^ provides another great opportunity for Taiwanese banks to establish their business in China. The Big West region is blooming; however, there are still very few financial services and relatively less competition in the region, therefore, the first mover¡¦s advantage we often discovered in the coastal region is not yet existed. This provides Taiwanese banks a great window to penetrate and a profitable potential return.
Strategic allying with or investing in the local banks to participate only in establishing branches and subsidiaries will be a highly growth strategy as well. Ningbo and Nanjing bank will be our first choices for the F bank to ally with within all first-tier banks. As for the second-tier banks, we believe relevant banks in Zhejiang Province, Montaibank, Chouzou commercial bank, and Tyrone commercial bank will be good targets if the F bank select to start up from the Yanze river delta region; Fujian Haizia bank will be our priority choice in Strait-West district.
In conclusion, the competition will become more intense in the future fighting for business of Taiwanese corporations in China; hence, the competition from Chinese local banks will become more furious as well. As the result, we believe the best strategy for Taiwanese banks to survive and penetrate in China will be to maintain the existing customers and to satisfy their needs before there is a clear progress of the ECFA negotiation. We suggest banks reconstruct their own resources integration and improve their efficiency and communication within the institution to customize their service to meet customers¡¦ needs to achieve the goal.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0828110-004958 |
| Date | 28 August 2010 |
| Creators | Chuang, Yen-Lin |
| Contributors | Jen-Hui Hsu, Chau-Jung Kuo, Jin-Der Chiang |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0828110-004958 |
| Rights | not_available, Copyright information available at source archive |
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