Artis Reit Accounting For Investment Properties Under Ifrs Case Study Solution and Analysis
Artis Reit Accounting For Investment Properties Under Ifrs Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info supplier and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring certain difficulties to the publishing industry in basic and Artis Reit Accounting For Investment Properties Under Ifrs Case Study Help in particular. These aspects consist of;
• Entrance of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
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 utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Artis Reit Accounting For Investment Properties Under Ifrs Case Study Help has certain strengths that can be made use of to minimize the threats, get rid of the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Artis Reit Accounting For Investment Properties Under Ifrs Case Study Analysis in the publishing market i.e. 60 years enables the company to supply high quality products at a lower cost using its prior experiences.
• The technical resources and abilities generated by its successful journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and supply high value to its clients.
• Strong financial position permits the company to consider numerous development opportunities with no fear of raising fund externally.
Along with the strengths, the company has specific weak points which might increase restrictions for the company in executing its advancement program. The weaknesses of Artis Reit Accounting For Investment Properties Under Ifrs Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the business 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 particular growth strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Although, the growth of the publishing industry is decreasing since 2008, impacting Artis Reit Accounting For Investment Properties Under Ifrs Case Study Solution as well, but the growth might be revived by availing specific chances provided in the market. The marketplace opportunities for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its huge financial resources.
The altering macro trends in the market and increasing competition in the publishing industry has actually presented certain threats to Artis Reit Accounting For Investment Properties Under Ifrs Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Artis Reit Accounting For Investment Properties Under Ifrs Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using particular strategies like aggressive promo, quality products, and so on
• Entrance of brand-new publishing companies in the industry along with presence of high competitors increases the threat of losing the consumer base.
The company has a quite competitive monetary performance. Due to lack of data, the financial ratios of CMP could not be determined. Nevertheless, the total financial performance of the business could be analyzed by using the graphs given in the case Appendices. It could be examined from the Appendix III that the yearly overall revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Artis Reit Accounting For Investment Properties Under Ifrs Case Study Analysis is growing and the company is quite effective in bring in a large number of clients at a possible price.
In addition to it, the second graph which shows the annual growth in the Artis Reit Accounting For Investment Properties Under Ifrs Case Study Solution overall possessions, shows that the business is quite efficient in including worth to its properties through its revenues. The growth in assets reveals that the overall value of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered information could be the analysis concerning the distribution of overall incomes of the company. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation segments with a potential development to achieve its future advancement objective.
PESTEL analysis could be performed to discover the various external forces affecting the performance of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a significant influence on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. It might be stated that the general political forces affecting CMP organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the Artis Reit Accounting For Investment Properties Under Ifrs Case Study Help in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine impact the demand for the publishing market. Together with it, the economic policies connected to the import of books affect the overall business at CPM. However, China's economic conditions are rather favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing consumer preferences.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Improvement of science and innovation in addition to the rise of digital publishing might minimize the demand for the CMP products, if certain actions would not be taken quickly.
Environmental forces impacting Artis Reit Accounting For Investment Properties Under Ifrs Case Study Analysis includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to analyze the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract new entrants to the publishing market. However, the existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard of Alternative.
Threat of Substitution is high for the Chinese Publishing Industry. The replacement items for the released files is the documents provided in the digital libraries on certain websites. The changing customer choices towards digital knowing increase the hazard of replacement for the industry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Artis Reit Accounting For Investment Properties Under Ifrs Case Study Help include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer 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 buyers requires high quality documents at competitive costs.
CMP runs in a highly competitive market with the existence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Artis Reit Accounting For Investment Properties Under Ifrs Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same duration, CIP publishes similar kind of books. For a big time period, CIP held the largest market share, and still ranks 2nd and third in various market sections, with a major focus on educational publications. CIP acts as a hazard 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 Artis Reit Accounting For Investment Properties Under Ifrs Case Study Help quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Artis Reit Accounting For Investment Properties Under Ifrs Case Study Analysis and CIP. It is likewise one of the popular players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the company to lose need of its items in the market.
As the choices are shifting towards digital publishing and the business require an instant solution to prevent the declining industry development. The company could also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business must first gathers the information associated with the customer need, the possible markets, the government policies and the information related to the rivals provided in the market. After that, the business ought to choose one possible sector for its preliminary offering. It needs to gather research that how it might distinguish its digital publishing from the existing competitors' items. After all the steps above the business need to choose the preliminary offering. The company should go for the other markets if the initial offering proves a success. In this method the company would have the ability to execute its digital publishing program.
The development of the publishing market is declining considering that 2008, revealing a hazard to the business's long term existence, but the circumstance can be managed by thinking about a development plan in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entrance in the new markets.