Apm Wealth Management Company Case Study Solution and Analysis
Introduction
Apm Wealth Management Company Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details provider and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring particular challenges to the publishing industry in basic and Apm Wealth Management Company Case Study Analysis in particular. These factors include;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the business 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
Apm Wealth Management Company Case Study Help has specific strengths that can be made use of to lower the threats, overcome the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Apm Wealth Management Company Case Study Solution in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its danger and provide high worth to its consumers.
• Strong financial position enables the business to consider a number of development chances with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has certain weak points which might increase constraints for the company in implementing its development program. The weak points of Apm Wealth Management Company Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific expansion plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is declining since 2008, affecting Apm Wealth Management Company Case Study Solution as well, but the development might be restored by availing particular opportunities provided in the market. The market opportunities for CMP consist of;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast financial resources.
Threats
The altering macro patterns in the market and increasing competition in the publishing market has actually posed certain threats to Apm Wealth Management Company Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in declining market share of Apm Wealth Management Company Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using specific techniques like aggressive promo, quality items, and so on
• Entryway of brand-new publishing firms in the market in addition to existence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
The business has a quite competitive monetary performance. Due to absence of information, the monetary ratios of CMP might not be determined. The total financial efficiency of the company could be examined by using the charts offered in the case Appendices. It might be evaluated from the Appendix III that the annual overall revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of Apm Wealth Management Company Case Study Analysis is growing and the business is quite effective in attracting a a great deal of consumers at a potential cost.
Together with it, the 2nd chart which reveals the yearly growth in the Apm Wealth Management Company Case Study Solution total possessions, shows that the business is rather efficient in adding worth to its properties through its profits. The development in possessions shows that the total value of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis concerning the distribution of overall revenues of the company. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sections with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces affecting the performance of the business and the recent patterns in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. It could be stated that the total political forces impacting CMP company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic 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 country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards reading helpful materials etc. China has the greatest population on the planet with a high population development, showing the increasing number of consumers of the Apm Wealth Management Company Case Study Solution. Nevertheless, the customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Enhancement of science and technology together with the increase of digital publishing might decrease the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Apm Wealth Management Company Case Study Analysis consists of the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be utilized to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk 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. However, the presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The replacement items for the published files is the documents presented in the digital libraries on particular websites. The altering consumer preferences towards digital knowing increase the danger of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Apm Wealth Management Company Case Study Help consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Apm Wealth Management Company Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same duration, CIP publishes comparable 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 significant concentrate on academic publications. CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of Apm Wealth Management Company Case Study Solution quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is also among the popular gamers in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors 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 business together with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the company require an immediate solution to avoid the declining industry development. Therefore, introduction of digital publishing could show to be an immediate solution with low amount of danger for the company. However, the company might also consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company needs to initially gathers the data related to the consumer need, the prospective markets, the federal government guidelines and the data related to the competitors presented in the market. If the preliminary offering shows a success, the company needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining considering that 2008, showing a risk to the company's long term existence, however the circumstance can be controlled by thinking about a development plan in the future. The company could think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entrance in the new markets.
