Ak Bank Credit Cards Case Study Solution and Analysis
Introduction
Ak Bank Credit Cards Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized info company and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
CMP has spent its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring specific difficulties to the publishing market in general and Ak Bank Credit Cards Case Study Help in specific. These factors include;
• Entryway of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The improvement 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 situation? Do the long important experience, technical resources and the abilities of the company could be used 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
Ak Bank Credit Cards Case Study Help has certain strengths that can be used to decrease the risks, get rid of the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Ak Bank Credit Cards Case Study Analysis in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and supply high worth to its consumers.
• Strong financial position permits the business to consider several development chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weaknesses which might increase restraints for the business in implementing its advancement program. The weaknesses of Ak Bank Credit Cards Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain growth strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing market is decreasing since 2008, impacting Ak Bank Credit Cards Case Study Analysis also, however the growth might be revived by availing specific chances presented in the market. The market chances for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its large funds.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has actually postured specific threats to Ak Bank Credit Cards Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Ak Bank Credit Cards Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using specific strategies like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the industry along with existence of high competitors increases the threat of losing the client base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP could not be computed. It could be analyzed from the Appendix III that the annual total profits of Ak Bank Credit Cards Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the business is quite efficient in drawing in a big number of clients at a prospective price.
Along with it, the second graph which shows the yearly growth in the Ak Bank Credit Cards Case Study Help overall possessions, reveals that the business is rather efficient in including value to its assets through its profits. The growth in properties reveals that the total worth of the firm is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business using the provided information could be the analysis concerning the circulation of overall incomes of the company. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business segments with a possible development to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the numerous external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. It could be said that the overall political forces affecting CMP company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the Ak Bank Credit Cards Case Study Help 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 combine effect the demand for the publishing market. In addition to it, the economic policies related to the import of books impact the overall company at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and innovation along with the rise of digital publishing could decrease the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Ak Bank Credit Cards Case Study Solution includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be used to analyze the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to bring in brand-new entrants to the publishing market. The existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Substitution.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement items for the released files is the files provided in the digital libraries on certain websites. The changing customer preferences towards digital learning increase the risk of alternative for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Ak Bank Credit Cards Case Study Help include the providers of the paper for releasing 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 Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Ak Bank Credit Cards Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same period, CIP releases similar kind of books. For a big period, CIP held the biggest market share, and still ranks third and 2nd in different market sections, with a major concentrate on academic publications. 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 marketplace share of Ak Bank Credit Cards Case Study Solution quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Ak Bank Credit Cards Case Study Solution and CIP. It is also one of the prominent players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the company need an immediate service to prevent the decreasing market growth. Introduction of digital publishing could show to be an immediate option with low amount of risk for the business. The business might also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business should first collects the information related to the customer need, the prospective markets, the federal government policies and the data related to the rivals provided in the market. If the preliminary offering shows a success, the business must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is declining given that 2008, showing a threat to the business's long term existence, but the circumstance can be controlled by thinking about a development strategy in the future. The company could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entryway in the new markets.
