Research On Transition Strategy Of The Sales Department A In Security S

Since the reform and opening up, the economy in China has been developing rapidly and the capital market has been improving constantly. However, in the process of development, new problems have been emerging. The practice of the economic model, the deterioration of the environment and the decrease of the development quality are all the current bottlenecks of development. The small and medium-sized enterprises are the main powers of economic development with the deepening of economic reform in China. Under the current economic situation, more and more small and medium-sized enterprises hope that the capital market can finance them more so that they can cut the cost on financing and form the production capacity as soon as possible. In the beginning of 2013, the national equities exchange and quotations was extended to the whole nation, which stirred a surge of public listings of the small and medium-sized enterprises. An increasing number of the small and medium-sized enterprises wanted to enter the national stock market through new OTC market, as well as enter Shanghai and Shenzhen stock markets.The securities industry in China has experienced several decades of development and has made great progress. However, with the reform and fusion of the capital markets and the introduction of E-marketing, competition between industries has been increasingly fierce. The securities industry was facing some development problems such as high homogeneity, single marketing channel and low profit growth. For the small-sized securities firms, these problems are more serious. If they want to survive the fierce competition, they must transform the model of profit growth, diversify the marketing channel and advance the innovation on business. More important, they must take full advantage of new OTC market, an opportunity of development, and realize the transformation and upgrade of their marketing business.The sales department A in securities S was established in 2010, its revenues were 11 million yuan in 2013,18 million in 2014 and 60 million in 2015, of which the commission income of regular trades took up 72.72%,69.44% and 64.5%. The average transaction commission rate dropped from 1.2‰ to 0.7‰, while revenue from the new OTC market business rose from only one hundred thousand in 2013 to 2 million in 2015, which has increased by twenty times with a trend of increasing. Although the revenue of sales department is still mainly from the traditional brokerage business now, it seems that the commission is declining significantly due to the homogenization of brokerage services, so it can only reduce the commission to attract customers. "Open a stock account with 2.5yuan commission per ten thousand" can be seen everywhere. Some brokers even put forward "open a stock account without commission" in the Internet. It is foreseeable that the revenue traditional brokerage business can bring will gradually reduce. To order to be invincible in the securities industry, they must learn from the development of foreign securities industry, combine it with China's capital market situation and seize good opportunities that exist in the development of the capital market.Therefore, under this circumstance, this paper, based on the popularity of the new OTC market, analyzed the related situations of sales department conducting business on the new OTC market. The article is divided into six parts:The first part:the introduction. It mainly introduces the background and significance of the research and briefly introduces the purpose and the content of the research.The second part:the analysis of the current situation. It mainly analyzes the existing domestic and international securities industry analysis, clarifies the development of the securities industry, analyzes its trends and characteristics and focuses on the importance of the transformation of the sales department in securities firms.The third part:the analysis of transition. It elaborates the main ways, directions and difficulties of the transition of the sales department in securities firms.The fourth part:the analysis of the market environment. It mainly analyzes the background environment and competition environment that the sales department A is facing now, and uses SWOT analysis to comprehensively analyzes the advantages and disadvantages, the opportunities and threats of the sales department.The fifth part:the analysis of potential profit. It mainly introduces the prospect of the new OTC market, illustrates the changes in the enterprises that were already listed in the new OCT market and those potential enterprises and further analyzes the profit margins the new OTC market business can bring to the securities firms and its sustainable development.The sixth part:the strategies and suggestions. It mainly analyzes the strategy of expanding the new OTC market in terms of securities'construction of marketing channel and differentiated services.There are two main contributions to this paper. First, the perspective of its research. It is different from other researches for it carried out the research from the stance of the sales department, Secondly, the content of its research. This article further improved the research for the new OTC market, which offers reference for the research on transition of the sales department in securities firms.