Asian Financial Crisis Impact On Malaysia Case Study Solution and Analysis
Introduction
Asian Financial Crisis Impact On Malaysia Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP offers a number of services including; gathering details, processing info and interaction services. Significant service segments of the company include; books, regulars, consultancy and distribution. The company has a huge product portfolio and its major products include books, regulars, online media, exhibitions, research reports etc. Asian Financial Crisis Impact On Malaysia Case Study Help has actually become a specialized information supplier and a big extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Concerns
CMP has actually invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring particular challenges to the publishing industry in basic and Asian Financial Crisis Impact On Malaysia Case Study Solution in specific. These elements include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The change of the macro markets have raised several questions 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 made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Asian Financial Crisis Impact On Malaysia Case Study Analysis has specific strengths that can be used to decrease the hazards, overcome the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Asian Financial Crisis Impact On Malaysia Case Study Analysis in the publishing market i.e. 60 years allows the company to provide high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and provide high value to its customers.
• Strong financial position allows the business to consider numerous advancement chances without any fear of raising fund externally.
Weak points
Along with the strengths, the company has particular weaknesses which might increase restraints for the company in implementing its advancement program. The weak points of Asian Financial Crisis Impact On Malaysia Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain growth plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is decreasing because 2008, affecting Asian Financial Crisis Impact On Malaysia Case Study Solution as well, but the development could be restored by availing particular chances provided in the market. The market chances for CMP consist of;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its huge financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has actually posed specific dangers to Asian Financial Crisis Impact On Malaysia Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Asian Financial Crisis Impact On Malaysia Case Study Help due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing specific methods like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the market in addition to existence of high competition increases the threat of losing the client base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the yearly total revenues of Asian Financial Crisis Impact On Malaysia Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of CMP is growing and the company is rather efficient in bring in a big number of clients at a prospective rate.
In addition to it, the 2nd chart which shows the yearly development in the Asian Financial Crisis Impact On Malaysia Case Study Help overall properties, shows that the company is quite efficient in adding worth to its assets through its incomes. The growth in assets reveals that the overall worth of the company is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the business using the given information could be the analysis relating to the distribution of total profits of the business. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sections with a potential growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the various external forces impacting the performance of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. It could be stated that the total political forces impacting CMP service are high. The government policies regarding the publishing sector are likewise 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 consumers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Improvement of science and innovation together with the increase of digital publishing might minimize the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Asian Financial Crisis Impact On Malaysia Case Study Solution consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be used to analyze the appearance of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to bring in new entrants to the publishing industry. The presence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The alternative items for the published documents is the documents presented in the digital libraries on certain sites. The changing consumer choices towards digital learning increase the threat of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Asian Financial Crisis Impact On Malaysia Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore 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 presence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Asian Financial Crisis Impact On Malaysia Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 CMP quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival 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 organisation scale. It is likewise among the popular players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the company require an immediate service to prevent the decreasing industry growth. Therefore, intro of digital publishing might show to be an instant option with low amount of danger for the business. 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 product portfolio, the company ought to initially collects the data related to the consumer need, the potential markets, the government guidelines and the information related to the competitors presented in the market. If the preliminary offering shows a success, the company should go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining because 2008, revealing a danger to the company's long term presence, however the situation can be controlled by considering a development plan in the future. The business might consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entrance in the brand-new markets.
