A Progressive Tax System Is Fairer Than A Flat Tax System From A Taxpayers Perspective Case Study Solution and Analysis
Intro
A Progressive Tax System Is Fairer Than A Flat Tax System From A Taxpayers Perspective Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized info provider and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, A Progressive Tax System Is Fairer Than A Flat Tax System From A Taxpayers Perspective Case Study Analysis has actually spent its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring particular challenges to the publishing industry in basic and CMP in particular. These aspects consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the company could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
A Progressive Tax System Is Fairer Than A Flat Tax System From A Taxpayers Perspective Case Study Help has certain strengths that can be utilized to lower the threats, get rid of the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of A Progressive Tax System Is Fairer Than A Flat Tax System From A Taxpayers Perspective Case Study Solution in the publishing industry i.e. 60 years enables the business to offer high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its danger and supply high worth to its customers.
• Strong financial position allows the company to think about several advancement chances without any fear of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weak points which might increase restrictions for the company in implementing its advancement program. The weak points of A Progressive Tax System Is Fairer Than A Flat Tax System From A Taxpayers Perspective Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain expansion strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is declining because 2008, impacting A Progressive Tax System Is Fairer Than A Flat Tax System From A Taxpayers Perspective Case Study Solution as well, however the development could be restored by availing specific opportunities presented in the market. The marketplace opportunities for CMP include;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge financial resources.
Threats
The altering macro patterns in the market and increasing competition in the publishing industry has posed specific dangers to A Progressive Tax System Is Fairer Than A Flat Tax System From A Taxpayers Perspective Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of A Progressive Tax System Is Fairer Than A Flat Tax System From A Taxpayers Perspective Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using specific strategies like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing companies in the industry together with presence of high competition increases the threat of losing the customer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the yearly overall revenues of A Progressive Tax System Is Fairer Than A Flat Tax System From A Taxpayers Perspective Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of CMP is growing and the company is rather efficient in drawing in a large number of consumers at a prospective rate.
In addition to it, the second chart which shows the annual growth in the A Progressive Tax System Is Fairer Than A Flat Tax System From A Taxpayers Perspective Case Study Solution total assets, reveals that the business is quite efficient in adding value to its properties through its revenues. The growth in possessions shows that the overall worth of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the company using the given data could be the analysis relating to the circulation of overall incomes of the business. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sections with a prospective growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the numerous external forces affecting the efficiency of the business and the current trends in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. Therefore, it might be stated that the general political forces affecting A Progressive Tax System Is Fairer Than A Flat Tax System From A Taxpayers Perspective Case Study Solution business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Improvement of science and technology in addition to the rise of digital publishing might reduce the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting A Progressive Tax System Is Fairer Than A Flat Tax System From A Taxpayers Perspective Case Study Analysis consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to analyze the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement items for the published documents is the documents provided in the digital libraries on specific websites. The changing consumer preferences towards digital knowing increase the risk of alternative for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the A Progressive Tax System Is Fairer Than A Flat Tax System From A Taxpayers Perspective Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of A Progressive Tax System Is Fairer Than A Flat Tax System From A Taxpayers Perspective Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same period, CIP publishes comparable type of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and 2nd in different market sectors, with a major concentrate on educational publications. CIP functions as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of A Progressive Tax System Is Fairer Than A Flat Tax System From A Taxpayers Perspective Case Study Solution easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as A Progressive Tax System Is Fairer Than A Flat Tax System From A Taxpayers Perspective Case Study Analysis and CIP. It is likewise one of the popular players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business require an immediate solution to prevent the decreasing market development. The company might likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company should first gathers the data related to the consumer need, the potential markets, the government guidelines and the information related to the rivals provided in the market. If the initial offering proves a success, the company needs to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing since 2008, showing a danger to the company's long term presence, however the circumstance can be controlled by considering a development strategy in the future. The company might consider introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
