Accounting Assignment 3 Case Study Solution and Analysis
Introduction
Accounting Assignment 3 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services including; collecting information, processing details and interaction services. Significant company segments of the business include; books, periodicals, consultancy and distribution. The business has a vast item portfolio and its major items consist of books, periodicals, online media, exhibitions, research reports etc. Accounting Assignment 3 Case Study Help has actually become a specialized info provider and a big thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring certain difficulties to the publishing market in basic and Accounting Assignment 3 Case Study Solution in particular. These elements include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the business could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Accounting Assignment 3 Case Study Help has certain strengths that can be used to reduce the threats, get rid of the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Accounting Assignment 3 Case Study Solution in the publishing market i.e. 60 years permits the business to provide high quality products at a lower cost using its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and offer high worth to its consumers.
• Strong monetary position enables the company to think about a number of advancement opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the business has certain weaknesses which might increase constraints for the company in implementing its development program. The weak points of Accounting Assignment 3 Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular expansion strategies to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is decreasing since 2008, affecting Accounting Assignment 3 Case Study Analysis as well, however the growth might be restored by availing particular opportunities provided in the market. The marketplace opportunities for CMP include;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast financial resources.
Threats
The changing macro patterns in the market and increasing competition in the publishing market has actually postured specific threats to Accounting Assignment 3 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Accounting Assignment 3 Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using specific methods like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the market along with existence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to absence of data, the financial ratios of CMP could not be computed. The general monetary efficiency of the business could be evaluated by using the graphs offered in the case Appendices. It could be examined from the Appendix III that the annual overall earnings of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Accounting Assignment 3 Case Study Solution is growing and the company is rather effective in drawing in a large number of clients at a prospective rate.
Along with it, the second chart which reveals the annual growth in the Accounting Assignment 3 Case Study Solution overall properties, reveals that the company is rather effective in adding value to its assets through its revenues. The development in possessions shows that the total worth of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered information might be the analysis regarding the circulation of overall earnings of the company. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sectors with a possible growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces affecting the performance of the business and the current patterns in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the general political forces impacting Accounting Assignment 3 Case Study Solution company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the Accounting Assignment 3 Case Study Analysis in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the demand for the publishing market. Together with it, the financial policies connected to the import of books impact the general service at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading informative products etc. China has the greatest population in the world with a high population development, showing the increasing number of customers of the Accounting Assignment 3 Case Study Help. The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies and so on. Enhancement of science and innovation in addition to the rise of digital publishing could minimize the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Accounting Assignment 3 Case Study Analysis consists of the issues 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 ought to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be utilized to examine the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to attract brand-new entrants to the publishing industry. The existence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The replacement products for the released files is the files presented in the virtual libraries on certain sites. The altering customer preferences towards digital learning increase the danger of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Accounting Assignment 3 Case Study Help consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Accounting Assignment 3 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it could 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 easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is also one of the popular players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage 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 present using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose need of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the company need an immediate solution to avoid the declining market development. The company could likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business ought to first collects the data related to the consumer need, the possible markets, the government policies and the information related to the competitors provided in the market. If the initial offering proves a success, the company should go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing since 2008, showing a threat to the company's long term presence, but the situation can be controlled by thinking about an advancement plan in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
