Accounting Assignment 3 Case Study Solution and Analysis
Accounting Assignment 3 Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized details supplier and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
CMP has spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market patterns and forces bring certain obstacles to the publishing market in general and Accounting Assignment 3 Case Study Help in specific. These elements consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the business could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Accounting Assignment 3 Case Study Help has specific strengths that can be used to minimize the dangers, overcome the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Accounting Assignment 3 Case Study Solution in the publishing industry i.e. 60 years permits the company to offer high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and provide high worth to its customers.
• Strong monetary position allows the business to consider a number of development chances with no worry of raising fund externally.
In addition to the strengths, the company has specific weak points which could increase restraints for the business in executing its advancement program. The weak points of Accounting Assignment 3 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular growth plans to avoid its dependence over the Chinese markets to attain long term development.
The growth of the publishing market is declining since 2008, impacting Accounting Assignment 3 Case Study Solution as well, but the development could be revived by availing specific opportunities presented in the market. The market chances for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge financial resources.
The changing macro patterns in the market and increasing competitors in the publishing market has actually posed specific threats to Accounting Assignment 3 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Accounting Assignment 3 Case Study Solution due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing certain strategies like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the industry together with presence of high competitors increases the threat of losing the consumer base.
The company has a rather competitive financial efficiency. Due to lack of information, the financial ratios of CMP might not be calculated. Nevertheless, the total monetary efficiency of the business could be analyzed by utilizing the charts given in the case Appendices. It could be evaluated from the Appendix III that the yearly overall earnings of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of Accounting Assignment 3 Case Study Help is growing and the company is quite efficient in drawing in a a great deal of customers at a possible price.
Together with it, the second chart which reveals the annual development in the Accounting Assignment 3 Case Study Solution total assets, reveals that the business is rather effective in adding value to its possessions through its profits. The development in assets reveals that the overall value of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business utilizing the offered information could be the analysis relating to the distribution of overall revenues of the company. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business segments with a prospective development to attain its future development goal.
PESTEL analysis might be conducted to discover the numerous external forces impacting the performance of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a considerable impact on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. It might be stated that the general political forces affecting CMP service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect 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 ought to focus on digital publishing to fulfill the altering consumer choices.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and innovation in addition to the increase of digital publishing could minimize the need for the CMP products, if particular actions would not be taken soon.
Ecological forces affecting Accounting Assignment 3 Case Study Solution includes the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing should not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to evaluate the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to bring in new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Alternative.
Risk of Alternative is high for the Chinese Publishing Industry. The alternative products for the published documents is the files presented in the digital libraries on particular sites. The changing consumer choices towards digital learning increase the danger of substitution for the market.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Accounting Assignment 3 Case Study Help include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive rates.
CMP runs in a highly competitive industry with the existence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Accounting Assignment 3 Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same period, CIP publishes similar kind of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and third in different market sectors, with a significant concentrate on academic publications. CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Accounting Assignment 3 Case Study Solution easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the same period as Accounting Assignment 3 Case Study Help and CIP. It is also one of the popular players in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Use of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the business to lose demand of its products in the market.
As the choices are moving towards digital publishing and the business need an immediate service to avoid the decreasing market growth. The company might likewise consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company must first gathers the data related to the consumer need, the potential markets, the government policies and the information related to the competitors 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.
The development of the publishing industry is declining since 2008, revealing a risk to the business's long term existence, however the situation can be managed by considering a development plan in the future. The business might consider presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entryway in the new markets.