Accounting Report Case Study Solution and Analysis
Intro
Accounting Report Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information company and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Concerns
Although, Accounting Report Case Study Analysis has actually invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring specific challenges to the publishing industry in basic and CMP in particular. These elements consist of;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous 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 company could be made use of 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 Report Case Study Help has specific strengths that can be used to decrease the hazards, overcome the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Accounting Report Case Study Solution in the publishing industry i.e. 60 years enables the company to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its successful journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and provide high worth to its clients.
• Strong monetary position permits the business to think about numerous development chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has specific weaknesses which could increase restrictions for the business in executing its development program. The weaknesses of Accounting Report Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific growth strategies to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is declining given that 2008, affecting Accounting Report Case Study Solution as well, but the growth could be restored by availing certain chances provided in the market. The market opportunities for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast funds.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has positioned particular risks to Accounting Report Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Accounting Report Case Study Help due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing specific techniques like aggressive promo, quality items, and so on
• Entrance of brand-new publishing companies in the industry along with existence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
The company has a rather competitive financial efficiency. Due to lack of data, the monetary ratios of CMP could not be calculated. Nevertheless, the overall monetary efficiency of the company might be evaluated by utilizing the charts given up the case Appendices. It could be examined from the Appendix III that the annual overall incomes of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of Accounting Report Case Study Analysis is growing and the company is quite efficient in drawing in a large number of consumers at a prospective cost.
Along with it, the 2nd graph which shows the annual growth in the Accounting Report Case Study Help total possessions, reveals that the company is rather effective in adding worth to its properties through its incomes. The growth in assets reveals that the overall worth of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business using the offered data could be the analysis regarding the circulation of total profits of the company. Huge part of the revenues 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 service segments with a potential growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. It might be stated that the overall political forces impacting CMP service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the Accounting Report Case Study Solution in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the need for the publishing market. Together with it, the economic policies associated with the import of books affect the general organisation at CPM. China's economic conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Improvement of science and innovation along with the increase of digital publishing could reduce the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Accounting Report Case Study Solution includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing needs to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies relating to 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 entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be utilized to evaluate the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to attract brand-new entrants to the publishing market. The existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The alternative products for the released files is the files provided in the virtual libraries on particular sites. The altering customer choices towards digital learning increase the danger of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Accounting Report 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 supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Accounting Report Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same period, CIP publishes similar type of books. For a large time period, CIP held the largest market share, and still ranks second and third in various 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 might wean the marketplace share of Accounting Report Case Study Help easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Accounting Report Case Study Solution and CIP. It is also one of the prominent players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company along with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the business need an immediate option to prevent the declining industry development. Intro of digital publishing could show to be an instant solution with low amount of threat for the business. Nevertheless, the business might likewise think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company ought to initially collects the data related to the customer demand, the potential markets, the government guidelines and the information related to the rivals presented in the market. If the initial offering proves a success, the business should go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing since 2008, revealing a risk to the business's long term existence, however the situation can be controlled by considering an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
