The Fascination of Securities Firms-The Role of Strategic Groups and the Business Strategies
Date Issued
2005
Date
2005
Author(s)
Huang, Hsi-Chin
DOI
zh-TW
Abstract
There are 52 securities firms（firms holding either two of the licenses for brokerage, underwriting and dealing are hereinafter referred to as securities firms）now in Taiwan competing to be the biggest financial giant in the industry, this thesis provides an in-depth study on the brokerage business for 16 securities firms whose market penetrations are among the top 20 in Taiwan. Based on the statistics on transactions in the market between 1994 and June 2004, the 10-year market performance suggests the followings: the increasing transactions in futures market have not imposed a threat on stock transactions; the entry of foreign securities firms to service foreign clients in Taiwan has not affected the market shares seized by domestic securities firms; securities firms have sought to increase their sizes drastically through “M&A” and “channel expansion” strategies; bigger securities firms have provided to clients with plentiful resources, organizational effectiveness and professional services sufficient enough to reach a “scale economy”, and in a foreseeable future the power of financial groups and their successful integration will no doubt become the mainstream in our financial world.
In addition, this thesis attempts to utilize the public financial reports filed by securities firms between 2001 and June 2004. It is then concluded that securities firms in Taiwan manage the business strategies more practically, consistently and generally, to confront an even harder competition in the market. For financial derivatives, the issuance of warrants has created an “S-type expansion”. The presentation of structural products and interest rate products is still at its initial stage. For big securities firms, one of the primary agenda is to aggressively expand their overseas securities businesses. The prospect remains: through transforming their underwriting business to investment banking, local securities firms strive to upgrade themselves to be regional securities firms.
Finally, the business strategies developed in this thesis conclude that a powerful implementation of plans is critical to a business’s success. Through studies on securities firms’ practical practices, media reports, marketing campaigns, and management and systems, this thesis develops a “strategic activity system” and explores possible “obstacles on strategic simulations”. It is intended to help securities firms evaluate their positions and circumstances and further, to reach their strategic purposes. With all the differentiations nonetheless, industry experience is undeniably one of the most crucial elements in inspiring business strategies.
Subjects
綜合證券商
策略群組
Securities Firms
Strategic Groups
Type
thesis