Aqrs Momentum Fund Case Study Solution and Analysis
Intro
Aqrs Momentum Fund Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information provider and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Issues
Although, Aqrs Momentum Fund Case Study Analysis has spent its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring specific challenges to the publishing market in general and CMP in particular. These elements consist of;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The transformation 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 scenario? Do the long important experience, technical resources and the capabilities of the business could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Aqrs Momentum Fund Case Study Analysis has specific strengths that can be used to lower the hazards, get rid of the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Aqrs Momentum Fund Case Study Analysis in the publishing industry i.e. 60 years allows the business to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its risk and offer high worth to its clients.
• Strong financial position allows the company to think about several advancement chances with no fear of raising fund externally.
Weak points
Together with the strengths, the business has certain weaknesses which could increase restraints for the company in implementing its advancement program. The weak points of Aqrs Momentum Fund Case Study Help are offered as follows;
• Despite of being a science and technology 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 development. It should propose specific expansion strategies to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing market is decreasing given that 2008, impacting Aqrs Momentum Fund Case Study Solution also, but the development could be revived by availing particular chances provided in the market. The marketplace opportunities for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing industry has posed particular risks to Aqrs Momentum Fund Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Aqrs Momentum Fund Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing particular strategies like aggressive promo, quality products, etc.
• Entryway of brand-new publishing companies in the industry in addition to existence of high competition increases the risk of losing the consumer base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP might not be determined. It could be evaluated from the Appendix III that the annual total profits of Aqrs Momentum Fund Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the company is quite effective in attracting a large number of consumers at a possible price.
In addition to it, the second chart which shows the yearly growth in the Aqrs Momentum Fund Case Study Analysis overall possessions, reveals that the business is quite efficient in including worth to its assets through its earnings. The growth in assets shows that the overall value of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the company using the given information could be the analysis regarding the circulation of total earnings of the business. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation sections with a prospective growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the various external forces affecting the performance of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. It could be said that the overall political forces affecting CMP organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards checking out informative products and so on. China has the highest population on the planet with a high population development, revealing the increasing variety of consumers of the Aqrs Momentum Fund Case Study Analysis. However, the consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Improvement of science and technology along with the rise of digital publishing could decrease the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Aqrs Momentum Fund Case Study Analysis consists of the concerns of ecological communities 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 ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Risk of Alternative.
Risk of Alternative is high for the Chinese Publishing Industry. The alternative products for the published files is the files presented in the virtual libraries on certain websites. The changing consumer choices towards digital learning increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Aqrs Momentum Fund Case Study Help include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Aqrs Momentum Fund Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same duration, CIP publishes comparable kind of books. For a large period, CIP held the biggest market share, and still ranks second and third in various market sectors, with a significant focus on academic publications. CIP acts as a hazard 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 Aqrs Momentum Fund Case Study Help easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is likewise among the prominent players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company together with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the business require an instant option to prevent the declining market development. Introduction of digital publishing could prove to be an instant solution with low amount of risk for the company. Nevertheless, the business might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company should first collects the information related to the customer need, the possible markets, the government guidelines and the data related to the rivals presented in the market. If the preliminary offering shows a success, the company must go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining because 2008, revealing a risk to the company's long term presence, but the circumstance can be managed by thinking about a development strategy in the future. The company might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.
