Model of the Factors Affecting Competitive Advantage for Shandong Province Wealth Investment Management Company

Background and Aims: The wealth investment management industry in Shandong Province, China, faces intensified competition amid evolving regulatory frameworks and changing customer preferences. This study investigates the factors influencing competitive advantage for wealth investment management companies in Shandong Province. The research aims to: (1) examine the current development status and challenges of wealth investment management companies, (2) identify key factors affecting competitive advantage, and (3) develop a comprehensive model explaining the relationships between market conditions, customer dynamics, marketing promotion strategies, and competitive advantage. Methodology: A mixed-methods approach was employed, combining quantitative and qualitative research. The quantitative study surveyed 400 employees from four wealth investment management companies in Shandong Province using structured questionnaires. Structural Equation Modeling (SEM) was utilized to test seven hypotheses examining relationships between market factors, customer variables, marketing promotion strategies, and competitive advantage. The qualitative component involved in-depth interviews with 20 participants to identify development problems and causes. Variables included market conditions, customer factors, marketing promotion strategies, and competitive advantage dimensions. Results: All seven hypotheses were statistically supported. SEM analysis revealed market conditions significantly influence marketing promotion strategies (β=0.870, p<0.001), customer dynamics (β=0.505, p<0.001), and competitive advantage (β=0.252, p<0.001). Marketing promotion strategies (β=0.073, p<0.001) and customer factors (β=0.135, p<0.01) positively impact competitive advantage. Significant indirect effects were confirmed through marketing strategies (0.117) and customer factors (0.037). Model fit indices demonstrated excellent fit (χ²/df=1.335, RMSEA=0.074). Key development challenges identified include regulatory compliance pressures, intensified competition, and insufficient innovation capabilities. Conclusion: The research establishes a comprehensive competitive advantage model demonstrating that market conditions serve as fundamental drivers operating both directly and through mediating effects of marketing strategies and customer relationships. The developed model provides a framework for understanding competitive dynamics in Shandong's wealth investment management sector. Recommendations include focusing on market segmentation, customer-centric innovation, digital transformation, and regulatory compliance to achieve sustainable competitive advantage.