How Can Chinese Shareholding Commercial Banks Create Competitive Advantage and Build Core Competence? A Case Study: Shanghai Pudong Development Bank.

Essay by fksubhaniUniversity, Master's March 2006

download word file, 85 pages 4.8


This project conducts a case study for the relations of competitive advantage, core competence and critical success factors in Shanghai Pudong Development Bank. The aims are to examine how Chinese shareholding commercial banks can create competitive advantage and build core competence.

This research reviews a series of analytical theories, including different approaches of competitive strategies, core competence, CSFs and relations of them. Moreover, the literatures of banking strategies, characteristics and key activities of banking industry as well as four CSFs in banking industry are reviewed. It helps identify the competitive strategy which SPDB has implemented, core competence which SPDB has built and needs to rebuild, and CSFs leading to CA and core competence of SPDB.

To reflect an empirical research of positivism, based on deductive methodology, this research employs both secondary and primary data collecting methods. Questionnaire survey in the middle-level managers and personal interviews portray the competitive position, core competence, CSFs of SPDB and strategic alliance between SPDB and Citibank, which describe the competitive environment that SPDB is faced with.

The author hopes this research has some implications for Chinese Shareholding Commercial banks to keep their competitive position and build their real core competence to face up with the challenges in the future dynamic Chinese banking market after full opening of Chinese banking market to the world.

List of Figures and Tables Page

Figure 2.1: Conversion of Tacit Knowledge and Explicit Knowledge 9

Figure 2.2: Competences: The Root of Competitiveness 11

Figure 2.3: The Relations of Resource, Core Competence, CSFs 15

and Competitive Advantage

Figure 3.1: Levels of the Strategies 18

Figure 6.1: Rate of View on Whether SPDB Has CA Compared 53

with State-Owned Banks

Figure 6.2: Rate of View on Whether SPDB Has CA Compared 54

with Foreign Banks

Figure 6.3: Rate of View on...