Arbitrage In The Government Bond Market 2 Case Study Solution and Analysis
Introduction
Arbitrage In The Government Bond Market 2 Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized details service provider and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring specific obstacles to the publishing market in basic and Arbitrage In The Government Bond Market 2 Case Study Help in particular. These elements consist of;
• Entrance of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised numerous questions 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 capabilities of the business could be made use of 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
Arbitrage In The Government Bond Market 2 Case Study Help has particular strengths that can be utilized to reduce the dangers, get rid of the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Arbitrage In The Government Bond Market 2 Case Study Solution in the publishing industry i.e. 60 years enables the company to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and supply high worth to its consumers.
• Strong financial position permits the business to think about several advancement chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which might increase restrictions for the business in implementing its development program. The weak points of Arbitrage In The Government Bond Market 2 Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional 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 growth strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is declining given that 2008, affecting Arbitrage In The Government Bond Market 2 Case Study Solution as well, however the development could be revived by availing specific chances presented in the market. The marketplace chances for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge financial resources.
Threats
The altering macro patterns in the market and increasing competitors in the publishing industry has positioned specific threats to Arbitrage In The Government Bond Market 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Arbitrage In The Government Bond Market 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain methods like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the industry together with existence of high competitors increases the danger of losing the client base.
Financial Analysis.
The company has a rather competitive financial performance. Due to absence of information, the financial ratios of CMP could not be calculated. The general monetary efficiency of the business might be evaluated by using the graphs given in the case Appendices. It could be evaluated from the Appendix III that the yearly total incomes of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of Arbitrage In The Government Bond Market 2 Case Study Help is growing and the business is rather efficient in attracting a large number of clients at a prospective rate.
In addition to it, the 2nd chart which shows the annual development in the Arbitrage In The Government Bond Market 2 Case Study Solution overall possessions, shows that the business is rather effective in adding value to its assets through its incomes. The development in assets shows that the total worth of the company is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the company using the given information might be the analysis regarding the circulation of overall incomes of the business. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sections with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces affecting the performance of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. For that reason, it could be stated that the total political forces affecting Arbitrage In The Government Bond Market 2 Case Study Analysis business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the Arbitrage In The Government Bond Market 2 Case Study Analysis in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the need for the publishing market. Along with it, the financial policies related to the import of books affect the total company at CPM. However, China's economic conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards reading informative products etc. China has the greatest population in the world with a high population growth, showing the increasing variety of customers of the Arbitrage In The Government Bond Market 2 Case Study Analysis. The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and technology in addition to the rise of digital publishing might decrease the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Arbitrage In The Government Bond Market 2 Case Study Analysis consists of the issues of ecological 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 used while publishing ought to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be utilized to analyze the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract brand-new entrants to the publishing market. The existence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative items for the released documents is the files presented in the digital libraries on specific websites. The changing customer preferences towards digital learning increase the hazard of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Arbitrage In The Government Bond Market 2 Case Study Help consist of the providers of the paper for publishing 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 Buyer.
Negotiating power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Arbitrage In The Government Bond Market 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 market share of CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise one of the prominent players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low threat 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 business segments to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
As the choices are shifting towards digital publishing and the business need an immediate option to prevent the declining industry growth. The business might also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business needs to initially collects the information related to the customer need, the possible markets, the government policies and the information related to the rivals provided in the market. If the preliminary offering proves a success, the company should go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing considering that 2008, revealing a risk to the business's long term existence, but the scenario can be managed by thinking about a development strategy in the future. The business might think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entryway in the new markets.
