Research On The Expansion Strategy Of XX Banknote Printing Corporation

With the rapid development of economy,there used to be a rising demand of RMB---the legal tender in China---in cash.From 2005 to 2015,however,China's cash circulation gradually slowed down after a sustained rapid growth.The net quantity of cash put into circulation in 2015 was only 26.87%of that at peak period in 2010.The main causes are as follows:first,non-cash payment such like the bank card,e-bank,non-contact terminals as well as mobile payment are widely used,which leads to a decreasing proportion of cash payment in daily consumption;another causes is that the economy of China has been stepping into the new normal phase with its mode changed,structure optimized and power transformed.The growth of GDP declined from 10%to about 7.5%,which shows the economic growth has entered a new historical stage.XX Banknote Printing Corporation,a wholly-owned subsidiary of China Banknote Printing and Minting Corporation,People's Bank of China,is the national legal banknote printing enterprise,which is charged with responsibility of guaranteeing the issuance of money.The company has engaged in totally four editions of the banknote printing,from the second to the fifth,and also successfully finished the printing such like Macau Pataca,tickets to the Olympic Games as well as the World Expo.However,affected by the above factors,the demand for cash has declined rapidly,which brings reduction of supply,together with a great impact and pressure to XX Banknote Printing Corporation.In order to obtain further development,the company must implement the new strategic transformation based on the current production structure.By cultivating its own core competitiveness may it find new interests point.This article analyses how the trend of cash behavior influences the banknote printing enterprises under the background of diversified means of payment by using strategic analysis of the PEST model,the SWOT model and the "five-force" model.Through the analysis of macro-environment,industry environment and the advantages of its own,the enterprise's competition superiority will be found out.The expansion strategy will be put forward with one major business and another multiple business,foming specific strategic measures,so that it could provide feasibility analysis and theoretical basis for enterprise's strategic transformation.The exploration will also have certain reference value to the development of other enterprises in the same industry.