Ant Financial Case Study Solution and Analysis
Intro
Ant Financial Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; gathering details, processing information and communication services. Significant business sections of the company include; books, periodicals, consultancy and distribution. The company has a huge item portfolio and its significant products include books, periodicals, online media, exhibitions, research reports and so on. Ant Financial Case Study Help has actually become a specialized details supplier and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Issues
CMP has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring specific challenges to the publishing industry in basic and Ant Financial Case Study Help in particular. These elements consist of;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous questions 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 used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Ant Financial Case Study Solution has specific strengths that can be utilized to decrease the threats, conquer the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Ant Financial Case Study Solution in the publishing industry i.e. 60 years allows the business to provide high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and offer high value to its customers.
• Strong financial position enables the business to consider a number of development chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has certain weaknesses which might increase restraints for the company in implementing its advancement program. The weaknesses of Ant Financial Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain growth strategies to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is declining because 2008, impacting Ant Financial Case Study Analysis also, however the development could be revived by availing particular opportunities provided in the market. The market opportunities for CMP consist of;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge funds.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing market has posed specific threats to Ant Financial Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Ant Financial Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing specific methods like aggressive promotion, quality products, etc.
• Entrance of new publishing companies in the industry in addition to presence of high competition increases the threat of losing the customer base.
Financial Analysis.
The business has a quite competitive monetary efficiency. Due to lack of data, the financial ratios of CMP could not be computed. The general financial performance of the company could be evaluated by utilizing the graphs given in the case Appendices. It might be evaluated from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of Ant Financial Case Study Solution is growing and the company is quite efficient in bring in a a great deal of customers at a prospective price.
In addition to it, the second graph which reveals the yearly development in the Ant Financial Case Study Solution overall assets, shows that the business is quite effective in including worth to its possessions through its earnings. The development in assets shows that the overall value of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided data might be the analysis concerning the distribution of overall revenues of the company. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other service sections with a possible development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the various external forces affecting the performance 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 might have a substantial effect on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. For that reason, it could be said that the overall political forces impacting Ant Financial Case Study Analysis service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading useful materials etc. China has the greatest population in the world with a high population development, revealing the increasing number of customers of the Ant Financial Case Study Analysis. However, the consumer preferences are moving towards digital publishing instead of the conventional 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 include the technological advancement in the reading strategies etc. Improvement of science and technology along with the increase of digital publishing could minimize the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Ant Financial Case Study Help consists of the issues 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 ought to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be used to examine the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to bring in new entrants to the publishing industry. The presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Alternative.
Danger of Replacement is high for the Chinese Publishing Market. The substitute items for the released documents is the files presented in the digital libraries on particular sites. The changing customer choices towards digital learning increase the hazard of replacement for the market.
Competitive Rivalry.
Competitive competition 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, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Ant Financial Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Ant Financial Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same duration, CIP publishes similar type of books. For a big time period, CIP held the largest market share, and still ranks 3rd and 2nd in different market sections, with a significant focus on instructional publications. CIP functions as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Ant Financial Case Study Analysis easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very 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 prominent gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the company to lose demand of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the business require an instant option to avoid the decreasing industry development. The company could also think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company must initially gathers the data related to the consumer demand, the potential markets, the federal government policies and the data associated with the rivals provided in the market. After that, the company needs to choose one prospective section for its preliminary offering. It should collect research that how it might distinguish its digital publishing from the existing rivals' products. The actions above the business ought to go for the preliminary offering. The business should go for the other markets if the preliminary offering proves a success. In this method the business would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing since 2008, revealing a risk to the business's long term presence, but the scenario can be managed by thinking about an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entryway in the new markets.
