Atr Kimeng Financial Corporation Case Study Solution and Analysis
Atr Kimeng Financial Corporation Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized information company and a large detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
CMP has spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring specific obstacles to the publishing industry in general and Atr Kimeng Financial Corporation Case Study Solution in particular. These factors include;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
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 abilities of the business could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Atr Kimeng Financial Corporation Case Study Analysis has specific strengths that can be used to minimize the hazards, conquer the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Atr Kimeng Financial Corporation Case Study Help in the publishing industry i.e. 60 years permits the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and provide high worth to its clients.
• Strong monetary position permits the company to think about several advancement opportunities with no fear of raising fund externally.
Together with the strengths, the business has certain weak points which could increase restraints for the company in implementing its development program. The weaknesses of Atr Kimeng Financial Corporation 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 extremely relies over the Chinese markets for its growth. It ought to propose certain growth plans to prevent its reliance over the Chinese markets to attain long term growth.
Although, the development of the publishing industry is declining given that 2008, impacting Atr Kimeng Financial Corporation Case Study Analysis as well, but the growth could be revived by availing certain opportunities provided in the market. The market chances for CMP include;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its huge financial resources.
The altering macro trends in the market and increasing competitors in the publishing industry has actually posed particular risks to Atr Kimeng Financial Corporation Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to decreasing market share of Atr Kimeng Financial Corporation Case Study Analysis 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 consumer base by utilizing certain strategies like aggressive promotion, quality items, etc.
• Entrance of new publishing firms in the market along with presence of high competition increases the hazard of losing the consumer base.
The company has a rather competitive monetary efficiency. Due to lack of information, the financial ratios of CMP might not be computed. The general financial performance of the company might be examined by using the charts provided in the case Appendices. It might be analyzed from the Appendix III that the annual overall incomes of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of Atr Kimeng Financial Corporation Case Study Analysis is growing and the business is quite effective in drawing in a large number of customers at a prospective price.
In addition to it, the 2nd graph which shows the yearly development in the Atr Kimeng Financial Corporation Case Study Analysis total properties, reveals that the company is quite effective in including worth to its properties through its earnings. The growth in properties reveals that the total value of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered information could be the analysis concerning the distribution of total revenues of the company. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company segments with a prospective growth to attain its future development objective.
PESTEL analysis could be performed to learn the various external forces affecting the performance of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the total political forces affecting Atr Kimeng Financial Corporation Case Study Solution business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards reading helpful materials and so on. China has the highest population on the planet with a high population development, revealing the increasing number of customers of the Atr Kimeng Financial Corporation Case Study Help. The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing consumer choices.
Technological forces impacting the CMP consist of the technological development in the reading techniques etc. Enhancement of science and technology together with the rise of digital publishing might reduce the need for the CMP products, if particular actions would not be taken quickly.
Ecological forces affecting Atr Kimeng Financial Corporation Case Study Help includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized 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 guidelines for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be utilized to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to attract brand-new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Threat of Substitution.
Threat of Substitution is high for the Chinese Publishing Industry. The alternative products for the published files is the documents provided in the digital libraries on particular sites. The altering consumer preferences towards digital knowing increase the threat of replacement for the market.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Atr Kimeng Financial Corporation Case Study Help consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 purchasers needs high quality files at competitive rates.
CMP runs 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 greatest market share in the Chinese publishing market. Significant competitors of Atr Kimeng Financial Corporation Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same duration, CIP publishes similar kind of books. For a large time period, CIP held the largest market share, and still ranks 2nd and 3rd in different market sections, with a major focus on educational publications. CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Atr Kimeng Financial Corporation Case Study Analysis quickly in the present market circumstance.
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 regards to company scale. It is also one of the popular players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose demand of its products in the market.
With the deep analysis of the internal and external environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are moving towards digital publishing and the business need an instant solution to avoid the declining industry development. Introduction of digital publishing might show to be an instant solution with low amount of danger for the company. The company might likewise think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company needs to first collects the information connected to the consumer need, the potential markets, the federal government guidelines and the information related to the rivals provided in the market. After that, the company must decide one prospective section for its initial offering. It needs to collect research study that how it might separate its digital publishing from the existing competitors' items. After all the steps above the company must choose the initial offering. The business ought to go for the other markets if the initial offering proves a success. In this way the business would be able to implement its digital publishing program.
The growth of the publishing industry is declining since 2008, showing a risk to the company's long term existence, however the scenario can be managed by thinking about a development plan in the future. The company could consider introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.