Research On Development Strategy Of SD Company’s Prepaid Card Business

In China, the prepaid card industry has experienced a long and tortuous process ofevolution. It is struggling to survive for nearly two decades on the edge of the marketwhich is considered as the gray area. In recent years, with the application of informationtechnology and the market innovation of micro-payment services, the prepaid card hasbeen widely used in the economic and social life. It has played a positive role inreducing the use of cash, promoting the consumption, meeting the public demand for awide range of payment services and reducing social transaction costs and so on. At thesame time, the relevant government department has also transformed the managementideas on the prepaid card. This transformation makes the prepaid card industry full ofnew vitality. In June2010, to promote the healthy development of the prepaid cardbusiness and standardize its business norms, the People’s Bank of China published the“The management approach for the payment service of the non-financial institution “. Itformally defined the legal status of the prepaid card and the issuance and acceptance ofthe prepaid card are the major business of the third party payment service. Thenon-financial institutions who undertake the payment services such as issue of theprepaid card and so on are also under the regulatory scope. The prepaid card industryhas entered a new period of development.At present, it is relatively lacking the research from domestic scholars about theprepaid card industry. The most studies are focused on risk control and regulation. Thereare very few researches involved in the strategic management of the prepaid card. InJune2013, China Association of Payment clearing first time released the "2013Chinarun report for payment and settlement industry" in Beijing. The China Chamber ofCommerce and the Department of Commerce International Trade and EconomicCooperation Research Institute sponsored the "2013Fourth China industry summit forthe commercial prepaid card ". At this summit, it released the “The China industryreport for the prepaid card of single-purpose commercial ".This is by far, one of the fewofficial public statistical data sources to study the industry of the prepaid card. But it isstill relatively blank in the academic area when it comes to the operation mechanismand operating data of the specific enterprise in prepaid card industry. This paper bases on the summary of the research results, analyzes through the theory of industry chain,the model of Porter’s five forces, the macro environment analysis tool of PEST, theanalysis tools of SWOT, and also combines with the author’s many years’ experience inproduct management about the prepaid card to study the external environment andinternal conditions of SD company and try to build the development strategy for theprepaid card business of SD company.In this paper, the framework is based on putting forwarder the problem, analyzingthe problem and solving the problem. In the part of analyzing the problem, through theanalysis of the macro environment and industry chain of the prepaid card industry, thispaper tries to find out the opportunities and threats in the external environment of theprepaid card business of the SD company. Through the analysis of the internalconditions of the SD company, this paper finds out the advantages and disadvantages inthe value chain of the prepaid card industry. Through the use of the SWOT analysistools, this paper analyzes the matching development strategy to provide a usefulreference and recommendation for the development strategy of the prepaid cardbusiness of the SD companies.