Atr Kimeng Financial Corporation Case Study Solution and Analysis
Atr Kimeng Financial Corporation Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized info supplier and a big thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Although, Atr Kimeng Financial Corporation Case Study Help has invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring specific difficulties to the publishing industry in general and CMP in particular. These elements consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing growth 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 concerns 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 used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Atr Kimeng Financial Corporation Case Study Solution has certain strengths that can be used to minimize the risks, conquer the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Atr Kimeng Financial Corporation Case Study Analysis in the publishing industry i.e. 60 years permits the business to provide high quality items at a lower expense using its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and supply high worth to its customers.
• Strong monetary position allows the business to consider numerous development chances without any worry of raising fund externally.
Along with the strengths, the company has certain weak points which might increase restraints for the business in executing its advancement program. The weak points of Atr Kimeng Financial Corporation Case Study Help 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 needs to propose certain growth plans to prevent its reliance over the Chinese markets to accomplish long term development.
The growth of the publishing industry is decreasing since 2008, affecting Atr Kimeng Financial Corporation Case Study Help as well, but the development could be restored by availing particular chances presented in the market. The marketplace chances for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast funds.
The changing macro trends in the market and increasing competitors in the publishing industry has posed particular risks to Atr Kimeng Financial Corporation Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Atr Kimeng Financial Corporation Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing certain techniques like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the market together with presence of high competition increases the hazard of losing the client base.
The business has a rather competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP could not be computed. The general monetary efficiency of the company might be examined by using the charts given in the case Appendices. It might be evaluated from the Appendix III that the annual total earnings of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the items of Atr Kimeng Financial Corporation Case Study Solution is growing and the business is quite effective in attracting a large number of consumers at a potential rate.
Along with it, the second chart which reveals the yearly development in the Atr Kimeng Financial Corporation Case Study Analysis overall properties, shows that the company is rather efficient in including worth to its assets through its incomes. The development in properties shows that the overall value of the company is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the company using the offered data could be the analysis relating to the circulation of total incomes of the business. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sectors with a potential development to achieve its future development goal.
PESTEL analysis might be carried out to discover the various external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a substantial effect on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. Therefore, it could be stated that the total political forces affecting Atr Kimeng Financial Corporation Case Study Help service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing consumer choices.
Technological forces affecting the CMP include the technological advancement in the reading methods etc. Improvement of science and technology in addition to the rise of digital publishing could decrease the demand for the CMP products, if particular actions would not be taken soon.
Environmental forces affecting Atr Kimeng Financial Corporation Case Study Help consists of the concerns of ecological communities 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 hazardous for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be used to examine the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to attract brand-new entrants to the publishing market. The presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement products for the published documents is the documents presented in the digital libraries on certain websites. The altering customer preferences towards digital knowing increase the hazard of replacement for the market.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Atr Kimeng Financial Corporation Case Study Solution include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
CMP operates in a highly competitive market with the existence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Atr Kimeng Financial Corporation Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the same period, CIP releases similar kind of books. For a large period, CIP held the biggest market share, and still ranks second and 3rd in different market sectors, with a significant concentrate on educational publications. CIP functions as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Atr Kimeng Financial Corporation Case Study Solution quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Atr Kimeng Financial Corporation Case Study Analysis and CIP. It is also one of the popular players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose need of its products in the market.
As the preferences are shifting towards digital publishing and the business need an immediate solution to prevent the decreasing industry development. The business could likewise think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company must first collects the information related to the consumer demand, the prospective markets, the federal government policies and the data related to the rivals presented in the market. If the preliminary offering shows a success, the company should go for the other markets. In this way the company would be able to execute its digital publishing program.
The growth of the publishing market is declining considering that 2008, revealing a risk to the business's long term existence, but the scenario can be controlled by thinking about an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entrance in the new markets.