Research The Transformation Of Traditional Business Of X Security Department In Shenzhen

Along with the booming development of the capital market,our domestic securities industry has been witnessed a remarkably rapid growth.Nevertheless,from a macro view of the developing process,there are some considerably significant problems in the traditional business such as high homogenization and fierce competition in the industry.From critical analysis of this situation,it can be seen that one major reason of the traditional business is under the special care from regulatory authorities.Another one is low operational cost with high profit.However,after the depression arrived in the stock market in 2008,reducing the level of commission charge is the main competitive approach many security companies adopted in order to capture more customer resources and expand the market occupancy.Due to the severe problems of the high homogenization in the business departments,and the single scope of business,the sustainable decline of the handling fee will be a negative influence on the income of security companies.In 2012,the China Securities Innovation Meeting was held.A recommendation was put forward that securities industry should accelerate the pace of innovation reformation in order to improve the income structure and enhance the profitability of business departments.In the recent years,Internet finance,which starts to be applied to the securities industry,has became popular.As the Online securities companies dramatically appeared,the business departments in the undeveloped areas seem to lose their original advantage of distribution.Especially,the low commission model brings severe impact on almost all securities companies.Under the rapidly dynamic change of internal and external environment,the traditional business that business departments exploit channel resources and earn commission fee will suffer a significant shock.In order to survive and develop,the securities business departments should consider the market demand,such as the developing direction,exploring new business and speeding up the transformation of the traditional business.It is the strategic idea that needs to be put into implement.It is also a necessary selection and the main meaning of this assignment.In this paper,firstly,there is a review on the domestic,foreign literature and theorem concerning the business innovation,strategic management,trading mechanism in the securities market.Then,make an analysis of the advantages and disadvantages for traditional business and innovational business.After that,by analyzing the change of macroscopic and microscopic environment and applying the method of Boston matrix theorem,we can determine the selection of business combination for the business departments of securities.Finally,from the case study,this paper will be evaluated the performance and risk after transformation and offered recommendation.The basic conclusion is that the continual variation of macroscopic and microscopic environment is regarded as the external pressure on the business transformation of business departments.The behavior of searching benefits for competitive advantages is the internal force for business transformation.And new business will provide new performance which is accompanied by new risk as well.