Securities Audit Market Segmentation And Firm Market Choice

On December 31, 2013, the stock transfer system announced that the listing application of the companies will be accepted all over the country in the future. It will provide CPA firms with a large number of customer resources, provide the great development of securities auditing market with the opportunities. But there are many problems in current securities auditing industry. For example, low price competition is serious,CPA firms’ income reduce dramatically;The lack of market segmentation, the CPA firms choose target market blindly; The level of the CPA firms’ industry specialization is low and so on.To solve these problems, the author hope to study the segmentation of the securities auditing market and the selection of the target markets. The author determine the segmentation standards of securities auditing market by referring to relevant literature and segmentation standards of the legal services market and collect data from the CSMAR,Shanghai Shenzhen stock exchange web site to segment the securities auditing market and obtain the status of the segmentation. The article also determine the principle and influence factors of the target market selection. This content put matting to the application of the GE matrix.In the part of target market selection,the author introduce the GE matrix creatively. GE matrix contains two axes, vertical axis reflect market attraction, transverse axis reflect firm competitiveness, in order to determine the score of the market appeal and firm competitiveness the author determines 6 secondary indicators and 12 tertiary indicators by following the principle of indicators determination, referring the GE matrix indices system and consulting the experts. The author also use the AHP to determine the weight and the score standards of the indicators to quantize the indicators of market attraction and firm competitiveness.In the end of the article,the author apply the GE matrix method to a CPA firm’ case of target market selection by using the research achievements of the entire article to help the relevant decision makers understand the method of target market selection and apply it to practice better.According to the introduction of this article,GE matrix method will be a reliable tool of securities auditing target market selection,it will help the CPA firm’s management layer to make the right decisions and select the target market reasonably.