Advanced Corporate Exam Case Study Solution and Analysis
Introduction
Advanced Corporate Exam Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services consisting of; gathering information, processing details and communication services. Significant business sectors of the business consist of; books, regulars, consultancy and circulation. The business has a vast product portfolio and its major products include books, regulars, online media, exhibitions, research reports etc. Advanced Corporate Exam Case Study Solution has actually ended up being a specialized info company and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, Advanced Corporate Exam Case Study Analysis has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring specific challenges to the publishing market in basic and CMP in specific. These aspects include;
• Entryway of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The change of the macro markets have raised several concerns 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 abilities of the business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Advanced Corporate Exam Case Study Analysis has specific strengths that can be used to reduce the dangers, get rid of the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Advanced Corporate Exam Case Study Help in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower cost using its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and provide high value to its clients.
• Strong financial position permits the company to consider several advancement opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the business has certain weaknesses which could increase constraints for the business in executing its development program. The weaknesses of Advanced Corporate Exam Case Study Help are offered 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 expansion plans to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, impacting Advanced Corporate Exam Case Study Help too, but the development could be restored by availing specific opportunities provided in the market. The market chances for CMP consist of;
• The company might likewise 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 expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its huge financial resources.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has actually posed certain dangers to Advanced Corporate Exam Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Advanced Corporate Exam Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number 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 certain techniques like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the market along with presence of high competition increases the threat of losing the client base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP could not be determined. It might be examined from the Appendix III that the yearly total earnings of Advanced Corporate Exam Case Study Help during the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of CMP is growing and the business is rather effective in attracting a big number of clients at a prospective cost.
In addition to it, the second graph which reveals the annual development in the Advanced Corporate Exam Case Study Help total assets, shows that the business is quite efficient in adding worth to its properties through its earnings. The growth in assets shows that the overall value of the firm is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered information could be the analysis regarding the circulation of overall profits of the business. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other business segments with a potential growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces impacting the performance of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. It could be stated that the general political forces affecting CMP company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
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 growth of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and technology together with the rise of digital publishing might decrease the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Advanced Corporate Exam Case Study Help includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be utilized to evaluate the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing market. Nevertheless, the existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Risk of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The replacement products for the released documents is the documents provided in the virtual libraries on particular sites. The altering consumer preferences towards digital knowing increase the risk of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Advanced Corporate Exam Case Study Analysis consist of the suppliers of the paper for publishing files. 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 Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Advanced Corporate Exam Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is also among the popular gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business together with the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future development. As the preferences are shifting towards digital publishing and the business need an immediate option to avoid the decreasing market growth. Intro of digital publishing could show to be an immediate solution with low quantity of threat for the business. Nevertheless, the business could 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 needs to first collects the information related to the customer demand, the potential markets, the government policies and the data related to the competitors provided in the market. If the preliminary offering proves a success, the business ought to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining given that 2008, showing a threat to the business's long term existence, but the situation can be managed by thinking about an advancement plan in the future. The business might think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entrance in the brand-new markets.
