Australian Miners And The Resource Super Profit Tax Case Study Solution and Analysis
Australian Miners And The Resource Super Profit Tax Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized information provider and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring certain difficulties to the publishing market in general and Australian Miners And The Resource Super Profit Tax 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.
• Intro of digital publishing methods
• Enhancement of science and technology.
The change of the macro markets have raised a number of concerns 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 company could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Australian Miners And The Resource Super Profit Tax Case Study Solution has specific strengths that can be used to reduce the threats, overcome the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Australian Miners And The Resource Super Profit Tax Case Study Analysis in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and provide high worth to its clients.
• Strong monetary position enables the business to consider a number of development opportunities without any worry of raising fund externally.
Together with the strengths, the business has specific weaknesses which might increase restrictions for the company in executing its advancement program. The weaknesses of Australian Miners And The Resource Super Profit Tax Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose particular expansion strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Although, the development of the publishing industry is decreasing since 2008, impacting Australian Miners And The Resource Super Profit Tax Case Study Help as well, but the growth could be restored by availing certain opportunities presented in the market. The market chances for CMP include;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large financial resources.
The altering macro trends in the market and increasing competition in the publishing industry has actually positioned specific risks to Australian Miners And The Resource Super Profit Tax Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Australian Miners And The Resource Super Profit Tax Case Study Help due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing specific methods like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing companies in the market in addition to existence of high competitors increases the threat of losing the customer base.
The company has a quite competitive monetary performance. Due to absence of information, the financial ratios of CMP might not be computed. The general financial efficiency of the company could be evaluated by utilizing the graphs provided in the case Appendices. It might be evaluated from the Appendix III that the yearly total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Australian Miners And The Resource Super Profit Tax Case Study Help is growing and the business is quite efficient in attracting a a great deal of consumers at a potential cost.
Together with it, the 2nd chart which reveals the yearly growth in the Australian Miners And The Resource Super Profit Tax Case Study Analysis total properties, reveals that the company is quite efficient in adding value to its possessions through its profits. The growth in properties shows that the overall value of the company is also increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the business using the provided data might be the analysis regarding the distribution of overall revenues of the business. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company sectors with a possible development to achieve its future advancement objective.
PESTEL analysis might be carried out to find out the various external forces affecting the performance of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector could have a substantial impact on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. Therefore, it might be stated that the overall political forces impacting Australian Miners And The Resource Super Profit Tax Case Study Help organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in basic 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 combine effect the demand for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing consumer choices.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Enhancement of science and technology together with the rise of digital publishing could reduce the demand for the CMP products, if certain actions would not be taken soon.
Environmental forces affecting Australian Miners And The Resource Super Profit Tax Case Study Analysis includes the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in new entrants to the publishing industry. However, the presence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Danger of Alternative.
Danger of Replacement is high for the Chinese Publishing Market. The alternative products for the released files is the documents provided in the digital libraries on certain sites. The changing customer preferences towards digital learning increase the risk of alternative for the market.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Australian Miners And The Resource Super Profit Tax Case Study Help include the providers 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 Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive costs.
CMP runs in an extremely competitive industry with the existence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Australian Miners And The Resource Super Profit Tax Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 CMP easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is also one of the prominent players in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the company to lose need of its products in the market.
As the preferences are moving towards digital publishing and the business require an immediate service to prevent the decreasing market growth. The business might also consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company must first gathers the data related to the customer demand, the possible markets, the federal government guidelines and the information associated with the rivals provided in the market. After that, the company needs to choose one prospective segment for its initial offering. It needs to collect research study that how it could separate its digital publishing from the existing competitors' products. After all the steps above the company need to choose the initial offering. If the initial offering proves a success, the business ought to choose the other markets. In this method the company would be able to execute its digital publishing program.
Although, the growth of the publishing industry is declining since 2008, revealing a danger to the business's long term existence, however the circumstance can be controlled by thinking about a development plan in the future. The company could consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.