Asian Financial Crisis Impact On Malaysia Case Study Solution and Analysis
Asian Financial Crisis Impact On Malaysia Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information service provider and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Although, Asian Financial Crisis Impact On Malaysia Case Study Solution has invested its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring specific obstacles to the publishing market in general and CMP in specific. These aspects include;
• Entryway of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The improvement 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 valuable experience, technical resources and the capabilities of the company could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Asian Financial Crisis Impact On Malaysia Case Study Solution has certain strengths that can be utilized to decrease the dangers, conquer the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Asian Financial Crisis Impact On Malaysia Case Study Help in the publishing market i.e. 60 years allows the business to supply high quality products at a lower expense using its prior experiences.
• The technical resources and abilities produced by its successful journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and offer high worth to its customers.
• Strong monetary position allows the company to consider numerous development chances without any fear of raising fund externally.
Together with the strengths, the business has certain weaknesses which might increase restrictions for the company in implementing its development program. The weak points of Asian Financial Crisis Impact On Malaysia Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, 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 growth. It should propose particular expansion plans to avoid its reliance over the Chinese markets to accomplish long term development.
The growth of the publishing market is decreasing given that 2008, impacting Asian Financial Crisis Impact On Malaysia Case Study Help as well, however the development could be restored by availing certain opportunities presented in the market. The market chances for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its vast financial resources.
The changing macro patterns in the market and increasing competition in the publishing industry has positioned specific hazards to Asian Financial Crisis Impact On Malaysia Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Asian Financial Crisis Impact On Malaysia Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing specific techniques like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing companies in the industry in addition to existence of high competitors increases the risk of losing the client base.
Due to absence of data, the monetary ratios of CMP could not be calculated. It could be evaluated from the Appendix III that the annual overall earnings of Asian Financial Crisis Impact On Malaysia Case Study Solution throughout the period 2000-2012 are growing at a high development rate, revealing that the annual need of the products of CMP is growing and the business is rather effective in attracting a large number of consumers at a potential cost.
Along with it, the second graph which shows the annual growth in the Asian Financial Crisis Impact On Malaysia Case Study Help total assets, shows that the business is quite efficient in including value to its properties through its incomes. The growth in properties reveals that the total worth of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business using the given information could be the analysis relating to the distribution of overall earnings of the business. Huge 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 organisation sections with a potential development to accomplish its future advancement goal.
PESTEL analysis could be performed to find out the numerous external forces affecting the efficiency of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a considerable influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. It could be stated that the overall political forces affecting CMP business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces affecting 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 country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The consumer 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 altering consumer choices.
Technological forces affecting the CMP include the technological advancement in the reading techniques and so on. Enhancement of science and technology together with the rise of digital publishing might reduce the need for the CMP items, if specific actions would not be taken soon.
Ecological forces affecting Asian Financial Crisis Impact On Malaysia Case Study Help consists of the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to attract new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Risk of Alternative is high for the Chinese Publishing Industry. The replacement products for the published documents is the files provided in the virtual libraries on particular sites. The altering consumer choices towards digital knowing increase the hazard of alternative for the industry.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Asian Financial Crisis Impact On Malaysia Case Study Help 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 supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive rates.
CMP runs in a highly 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. Significant rivals of Asian Financial Crisis Impact On Malaysia Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the same period, CIP publishes comparable kind of books. For a large period, CIP held the biggest market share, and still ranks 2nd and 3rd in numerous market segments, with a major focus on academic publications. CIP functions as a danger 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 Asian Financial Crisis Impact On Malaysia Case Study Help easily in the present market situation.
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 6th in the state-owned publishers in terms of service scale. It is also among the prominent gamers in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Usage of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose need of its items in the market.
As the preferences are shifting towards digital publishing and the company require an instant service to prevent the decreasing market development. The company might likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business ought to first gathers the data related to the consumer need, the possible markets, the federal government regulations and the data associated with the rivals presented in the market. After that, the company ought to decide one prospective section for its initial offering. It must gather research study that how it could distinguish its digital publishing from the existing competitors' items. After all the actions above the company must choose the initial offering. The company should go for the other markets if the preliminary offering proves a success. In this way the business would be able to implement its digital publishing program.
Although, the growth of the publishing market is decreasing considering that 2008, revealing a danger to the business's long term existence, but the scenario can be managed by considering a development strategy in the future. The business could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entryway in the brand-new markets.