XGD’s Competitive Strategy In POS

In recent years, with the rapid development of politics, economy, society and technology,electronic Payment industry and POS Industry have been developing rapidly. There havebeen unusually intense in competition between the domestic POS manufacturers, whichformed an oligopolistic competition situation. The major customers of the POS companiessuch as china UMS and domestic commercial back have strong bargaining power. Thedevelopment of internet online payments, mobile payments and other emerging paymentmode breaks the traditional POS industry market. As a listed company for nearly a decade inthe POS industry, XGD has a strong competitive strength. On the one hand, the companyfaced a homogeneity dilemma in the traditional field. On the other hand, XGD has fewexperience and talent in the emerging field. In such an environment which the opportunitiesand difficulties all exist, it is necessary for the company to do the research of competitivestrategy, so that the company can further capitalize on market opportunities, expand businessideas and achieve greater success.With the use of PEST model, Porter’s Five Forces model, value chain model, we havecarried out a detailed analysis to the macro environment, competitive situation and internalresources of the company. And then we summed up the opportunities and challenges whichthe company faces and we understand the advantages and disadvantages which the companyhas. And finally we use SWOT matrix model to do the research of the company’s manyfeatures, and then we draw a conclusion that we should select the SO strategies and WOstrategies, so that we can take a full advantages of the company’s resources such as capital,technology, and customer resources, and overcome the disadvantages such as lack of talentand few experience in the emerging fields, and then choose the differentiation strategy. Inaddition, the concept of differentiation should be run through the company’s whole valuecreation activities. It is achieved mainly through products and services differentiation. In thisarticle, based on the theory of the company’s differentiation strategy and combined with thecompany’s wish,"to become a good service provider of electronic payment”, we alsoplanning the company’s long-term, medium-term and short-term strategic objectives andfurther clarify the company’s products and markets positioning. In order to ensure the smooth implementation of competitive strategy, the company should also strengthen the R&Dcapacity, improve organizational structure, establish and improve the IT system, improve thehuman resources and contribute to ongoing efforts to foster the innovative corporate cultures.