Accounting Assignment 2 Case Study Solution and Analysis
Intro
Accounting Assignment 2 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP provides a number of services consisting of; collecting information, processing info and interaction services. Major business segments of the business consist of; books, periodicals, consultancy and circulation. The company has a huge item portfolio and its major products consist of books, regulars, online media, exhibits, research study reports etc. Accounting Assignment 2 Case Study Solution has become a specialized info provider and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has actually spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring certain obstacles to the publishing industry in basic and Accounting Assignment 2 Case Study Analysis in specific. These factors include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The transformation of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the business could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Accounting Assignment 2 Case Study Help has particular strengths that can be utilized to reduce the threats, get rid of the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Accounting Assignment 2 Case Study Analysis in the publishing market i.e. 60 years allows the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and provide high value to its customers.
• Strong financial position allows the business to think about numerous development chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weak points which could increase restrictions for the business in executing its development program. The weak points of Accounting Assignment 2 Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular growth plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing industry is declining given that 2008, impacting Accounting Assignment 2 Case Study Solution as well, but the development might be restored by availing certain chances presented in the market. The market opportunities for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has presented certain risks to Accounting Assignment 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Accounting Assignment 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using certain techniques like aggressive promo, quality products, etc.
• Entryway of brand-new publishing companies in the industry together with presence of high competitors increases the threat of losing the customer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP might not be calculated. It could be examined from the Appendix III that the annual overall profits of Accounting Assignment 2 Case Study Analysis during the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of CMP is growing and the company is quite effective in bring in a big number of customers at a prospective rate.
Along with it, the 2nd graph which shows the annual development in the Accounting Assignment 2 Case Study Analysis overall possessions, shows that the business is rather efficient in including worth to its assets through its incomes. The growth in properties shows that the total value of the company is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company using the provided data might be the analysis regarding the circulation of total incomes of the business. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation sectors with a prospective development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the various external forces impacting the performance of the business and the current trends in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the overall political forces affecting Accounting Assignment 2 Case Study Analysis service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques etc. Improvement of science and innovation in addition to the rise of digital publishing could lower the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Accounting Assignment 2 Case Study Analysis includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be used to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to attract new entrants to the publishing industry. However, the existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Danger of Substitution.
Threat of Substitution is high for the Chinese Publishing Industry. The alternative items for the published documents is the documents presented in the digital libraries on certain sites. The changing consumer preferences towards digital knowing increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Accounting Assignment 2 Case Study Help include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
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.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Accounting Assignment 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Accounting Assignment 2 Case Study Solution and CIP. It is likewise one of the prominent players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 sectors to the new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company along with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the company need an immediate option to avoid the decreasing market growth. Intro of digital publishing might prove to be an instant service with low amount of risk for the company. However, the business might also consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company needs to first gathers the information related to the customer need, the prospective markets, the government guidelines and the data connected to the competitors presented in the market. After that, the company ought to decide one potential sector for its preliminary offering. It should collect research study that how it could differentiate its digital publishing from the existing competitors' items. The actions above the company need to go for the initial offering. The company should go for the other markets if the initial offering proves a success. In this method the business would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining considering that 2008, revealing a danger to the business's long term existence, however the situation can be controlled by considering a development strategy in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entrance in the new markets.
