Yd Group's Smart Card Business Strategy Adjustment

YD Holdings Group came into being, as a former industrial development bureau, directly under control of the State-owned Assets Supervision and Administration Commission of Shanghai Municipal Government (SASAC). The group needs to make overall planning to meet its strategic goals, an annual sales of RMB 20 billion as part of that.The business of smart cards is one of the group's eight core business. There are different sections along the industry chain, and YD group's business is mainly focused on the section of chips packaging. But, the market segment is quite limited, with total estimated capacity specified around RMB 2 billion. There is high potential for the group's business of smart card to expand, and a new strategic positioning is at the first priority.In this paper, the author shall take full use of the knowledge of strategic management, economics and other relative theories. In order to understand the market competition and developing trends, the strategic decision-making tools such as PEST, SWOT, or five forces model shall be applied. As for the business of smart cards, the YD holding group might not be limited in the segmented market of chips package, but focus on the expanding integration of industry chain. Furthermore, based on the give strategic planning, the author advises some developed organizational architecture, and risk management to ensure the strategy implementation.