Australian Miners And The Resource Super Profit Tax Case Study Solution and Analysis
Introduction
Australian Miners And The Resource Super Profit Tax Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details company and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Concerns
Although, Australian Miners And The Resource Super Profit Tax Case Study Help has spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing market in basic and CMP in specific. These elements consist of;
• Entrance of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The transformation of the macro markets have raised numerous concerns 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 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?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Australian Miners And The Resource Super Profit Tax Case Study Help has certain strengths that can be utilized to decrease the dangers, overcome the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Australian Miners And The Resource Super Profit Tax Case Study Analysis in the publishing market i.e. 60 years enables the business to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its successful journey offer a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong monetary position allows the company to think about a number of development chances without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weaknesses which might increase restrictions for the business in implementing its development program. The weaknesses of Australian Miners And The Resource Super Profit Tax 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 needs to propose certain growth strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, affecting Australian Miners And The Resource Super Profit Tax Case Study Analysis also, but the development could be restored by availing certain chances provided in the market. The marketplace opportunities for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge funds.
Hazards
The altering macro trends in the market and increasing competition in the publishing industry has postured specific risks to Australian Miners And The Resource Super Profit Tax Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Australian Miners And The Resource Super Profit Tax Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing particular methods like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the industry along with presence of high competition increases the threat of losing the client base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be determined. It might be examined from the Appendix III that the yearly total revenues of Australian Miners And The Resource Super Profit Tax Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the company is rather efficient in attracting a large number of consumers at a potential cost.
Together with it, the second graph which reveals the annual growth in the Australian Miners And The Resource Super Profit Tax Case Study Analysis overall possessions, shows that the company is rather effective in including worth to its assets through its incomes. The development in assets shows that the total value of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business using the offered data could be the analysis relating to the circulation of total incomes of the company. Major part of the earnings 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 segments with a possible development to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to discover the numerous external forces affecting the efficiency of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it could be said that the general political forces impacting Australian Miners And The Resource Super Profit Tax Case Study Help business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards checking out helpful materials and so on. China has the highest population worldwide with a high population growth, showing the increasing number of consumers of the Australian Miners And The Resource Super Profit Tax Case Study Analysis. Nevertheless, the consumer choices are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Improvement of science and innovation together with the increase of digital publishing could reduce the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Australian Miners And The Resource Super Profit Tax Case Study Analysis consists of the issues of ecological neighborhoods over the use 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 ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to examine the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in new entrants to the publishing market. Nevertheless, the presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Risk of Alternative.
Danger of Alternative is high for the Chinese Publishing Industry. The substitute items for the published files is the documents presented in the virtual libraries on certain websites. The changing customer choices towards digital learning increase the danger of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Australian Miners And The Resource Super Profit Tax Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total 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 large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Australian Miners And The Resource Super Profit Tax Case Study Analysis consist of;.
• Chemical Industry 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 easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also among the prominent gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competition 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 business to lose need of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the business need an immediate service to avoid the declining industry development. The company might also think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business needs to first collects the information related to the customer need, the potential markets, the government regulations and the data related to the rivals presented in the market. If the preliminary offering shows a success, the business ought to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing given that 2008, revealing a hazard to the company's long term presence, however the circumstance can be managed by considering a development plan in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.
