YT Company

In recent years, China is experiencing financial system reform continuously, its Internet finance and mobile payment are developing rapidly, which put the banking industry of China under higher competitive pressure. The demand for ATM keeps declining while more 2nd and 3rd tire manufactures are constantly enter the market. Manufactures’ profit margin is getting tighter as a result of intensive competition. The industry is at a development bottleneck stage. Under such circumstances, as a leading domestic manufacturer in ATM industry, YT also bears heavy impacts from the market like other companies. YT has to review its internal and external environment, re-evaluate its market position, profitability, and conduct a new development strategy investigation, which are extremely significant and practical to the future development.This paper employs a leading manufacture in the industry YT as an example. It introduces current industry status of ATM business, points out major problems of YT, states the importance of YT business development planning, and analyzes the YT case with business strategy theories and tools.First of all, PEST method is used to analyze macro environment of YT, while the Porter’s Five Forces model is adopted to analyze industry environment in order to identify opportunities and threats. Secondly, through the analysis of the internal environment of YT, identifies YT’s internal strengths and weaknesses, and then reveals the core competencies of YT from analyzing internal environment. By summarizing the analysis of external and internal environment, the paper generates the advanced SWOT matrix of YT, and demonstrates the direction of YT’s future business development. In the final part, ten-year business development targets will be listed. The paper recommends strategic plan options based on the Porter’s competition strategy theory, and also generates a business development plan with implementation activities. YT company should focus on ATM manufacturing as the core business, and actively extend ATM service business. It should also enhance the capability of providing ATM operation system solutions for the full industrial chain, keep innovating new business in bank branch transformation and smart banking, and look for new profit growth opportunities. Stronger investment and financing will be a key to be a "concentric diversification" company. By all means, YT will draw a rational business and assets layout, and eventually achieve the company’s long-term development goal. Furthermore, the study of this case will also provide strategic development experience and guidance for other domestic enterprises in ATM manufacturing industry.