Al Hilal Bank Setting An Example Case Study Solution and Analysis
Intro
Al Hilal Bank Setting An Example Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering info, processing info and interaction services. Significant company sectors of the business consist of; books, regulars, consultancy and circulation. The company has a large item portfolio and its significant products consist of books, periodicals, online media, exhibits, research study reports etc. Al Hilal Bank Setting An Example Case Study Analysis has ended up being a specialized information provider and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Problems
Although, Al Hilal Bank Setting An Example Case Study Solution has actually invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing market in general and CMP in particular. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the business could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Al Hilal Bank Setting An Example Case Study Analysis has particular strengths that can be made use of to minimize the risks, overcome the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Al Hilal Bank Setting An Example Case Study Solution in the publishing market i.e. 60 years allows the business to supply high quality items at a lower cost using its prior experiences.
• The technical resources and abilities created by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and supply high worth to its customers.
• Strong monetary position permits the company to consider numerous development opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weaknesses which might increase constraints for the business in executing its advancement program. The weak points of Al Hilal Bank Setting An Example Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular growth plans to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing market is declining given that 2008, affecting Al Hilal Bank Setting An Example Case Study Analysis as well, but the growth could be revived by availing particular opportunities provided in the market. The market opportunities for CMP include;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its huge funds.
Hazards
The altering macro trends in the market and increasing competitors in the publishing industry has actually posed certain risks to Al Hilal Bank Setting An Example Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Al Hilal Bank Setting An Example Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing particular strategies like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the market together with existence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
The company has a quite competitive financial efficiency. Due to absence of information, the monetary ratios of CMP might not be calculated. The overall financial efficiency of the business might be examined by utilizing the charts provided in the case Appendices. It could be evaluated from the Appendix III that the annual overall earnings of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of Al Hilal Bank Setting An Example Case Study Analysis is growing and the business is quite efficient in attracting a large number of customers at a possible cost.
Together with it, the 2nd graph which reveals the yearly growth in the Al Hilal Bank Setting An Example Case Study Analysis overall possessions, shows that the business is quite effective in adding value to its assets through its profits. The development in properties reveals that the total worth of the company is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the company using the provided information could be the analysis relating to the circulation of overall incomes of the business. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sectors with a potential growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces impacting the performance of the company and the current trends in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. It might be stated that the total political forces affecting CMP organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards reading useful materials and so on. China has the highest population on the planet with a high population development, revealing the increasing variety of customers of the Al Hilal Bank Setting An Example Case Study Solution. Nevertheless, the customer preferences are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and innovation in addition to the rise of digital publishing could lower the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Al Hilal Bank Setting An Example Case Study Solution includes the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be used to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to draw in brand-new entrants to the publishing industry. The existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The substitute items for the published files is the documents presented in the virtual libraries on particular sites. The changing consumer choices towards digital knowing increase the threat of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market 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 rivalry for CMP. Together with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Al Hilal Bank Setting An Example Case Study Solution consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer 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 purchasers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Al Hilal Bank Setting An Example Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Al Hilal Bank Setting An Example Case Study Analysis and CIP. It is also one of the popular gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 sectors to the new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the company need an instant solution to prevent the decreasing market development. For that reason, introduction of digital publishing might prove to be an immediate solution with low quantity of risk for the company. The business might also think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company needs to first collects the information 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 shows a success, the company ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining since 2008, revealing a danger to the business's long term presence, however the scenario can be managed by considering a development plan in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entryway in the new markets.
