Aviva Investors Case Study Solution and Analysis
Aviva Investors Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information company and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring specific obstacles to the publishing industry in basic and Aviva Investors Case Study Solution in specific. These factors consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised a number of 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 abilities of the company could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Aviva Investors Case Study Analysis has certain strengths that can be made use of to minimize the threats, conquer the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Aviva Investors Case Study Analysis in the publishing industry i.e. 60 years allows the company to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and offer high worth to its customers.
• Strong monetary position permits the business to think about several advancement chances with no fear of raising fund externally.
In addition to the strengths, the business has specific weaknesses which might increase constraints for the business in implementing its development program. The weak points of Aviva Investors Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific growth plans to avoid its dependence over the Chinese markets to accomplish long term growth.
The growth of the publishing market is decreasing since 2008, affecting Aviva Investors Case Study Analysis as well, but the development could be restored by availing particular opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast funds.
The changing macro trends in the market and increasing competition in the publishing industry has actually posed particular threats to Aviva Investors Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to decreasing market share of Aviva Investors Case Study Help due to the customer shift towards virtual 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 rivals can get a strong consumer base by using particular techniques like aggressive promotion, quality products, and so on
• Entryway of new publishing firms in the industry along with existence of high competition increases the threat of losing the consumer base.
Due to absence of information, the financial ratios of CMP might not be computed. It could be evaluated from the Appendix III that the annual total earnings of Aviva Investors Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the company is quite effective in attracting a large number of customers at a prospective cost.
In addition to it, the second chart which shows the yearly growth in the Aviva Investors Case Study Help total assets, reveals that the company is quite effective in including worth to its properties through its profits. The growth in assets reveals that the total value of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business using the given information could be the analysis concerning the distribution of total profits of the company. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation segments with a prospective development to attain its future advancement objective.
PESTEL analysis might be performed to discover the various external forces impacting the performance of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a significant impact on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It might be said that the general political forces impacting CMP service 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 Aviva Investors Case Study Analysis in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces integrate impact the need for the publishing market. Together with it, the economic policies associated with the import of books impact the general organisation at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
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 meet the altering customer choices.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Improvement of science and innovation in addition to the increase of digital publishing might minimize the need for the CMP items, if specific actions would not be taken quickly.
Environmental forces affecting Aviva Investors Case Study Analysis consists of the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable 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 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be used to evaluate the appearance of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract new entrants to the publishing industry. The presence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Danger of Substitution.
Hazard of Alternative is high for the Chinese Publishing Industry. The alternative products for the published files is the files provided in the digital libraries on particular websites. The changing consumer preferences towards digital knowing increase the hazard of replacement for the industry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Aviva Investors Case Study Solution consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive prices.
CMP runs in an extremely competitive industry with the presence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Aviva Investors Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same duration, CIP publishes similar type of books. For a big period, CIP held the largest market share, and still ranks third and 2nd in different market sections, with a significant focus on instructional publications. CIP functions as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Aviva Investors Case Study Solution easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise one of the popular gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Use of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
• 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 company to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the company together with the market analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the choices are shifting towards digital publishing and the company need an immediate service to avoid the declining industry development. Introduction of digital publishing might show to be an immediate option with low amount of danger for the business. However, the business could also think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company must initially collects the data related to the consumer need, the possible markets, the federal government policies and the data related to the rivals provided in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this way the company would be able to execute its digital publishing program.
Although, the growth of the publishing market is declining because 2008, showing a threat to the business's long term presence, however the scenario can be controlled by thinking about a development strategy in the future. The business might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the threat of failure for entryway in the new markets.