Aviva Investors Case Study Solution and Analysis
Intro
Aviva Investors Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information supplier and a big extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Concerns
Although, Aviva Investors Case Study Solution has actually invested its 60 years journey smoothly, being a successful publishing home, however, the altering macro market trends and forces bring specific obstacles to the publishing market in basic and CMP in specific. These factors include;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the business could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Aviva Investors Case Study Help has specific strengths that can be made use of to reduce the dangers, conquer the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Aviva Investors Case Study Solution in the publishing industry i.e. 60 years enables the company to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its danger and supply high value to its clients.
• Strong monetary position permits the business to consider several advancement chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has particular weak points which could increase restraints for the company in implementing its development program. The weak points of Aviva Investors Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain growth strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is declining because 2008, impacting Aviva Investors Case Study Solution as well, however the development might be restored by availing certain opportunities presented in the market. The marketplace opportunities for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast financial resources.
Risks
The changing macro patterns in the market and increasing competitors in the publishing market has actually positioned specific threats to Aviva Investors Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in declining market share of Aviva Investors Case Study Help due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing specific methods like aggressive promo, quality items, and so on
• Entrance of brand-new publishing companies in the market together with presence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
The business has a quite competitive monetary performance. Due to absence of information, the financial ratios of CMP might not be determined. Nevertheless, the general financial performance of the business could be examined by using the graphs given in the case Appendices. It could be evaluated from the Appendix III that the annual overall revenues of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of Aviva Investors Case Study Help is growing and the business is quite effective in attracting a large number of clients at a potential rate.
Together with it, the second graph which shows the yearly growth in the Aviva Investors Case Study Analysis overall possessions, shows that the business is rather efficient in adding value to its properties through its earnings. The development in properties reveals that the overall value of the company is also increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered data might be the analysis regarding the circulation of overall revenues of the business. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sectors with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to discover the various external forces impacting the performance of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is provided 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 federal government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. It might be stated that the total political forces affecting CMP service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the Aviva Investors Case Study Solution in particular includesthe rates 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. In addition to it, the economic policies related to the import of books impact the total company at CPM. China's economic conditions are quite favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards reading useful materials and so on. China has the greatest population in the world with a high population growth, showing the increasing variety of customers of the Aviva Investors Case Study Help. The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and technology together with the increase of digital publishing might decrease the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Aviva Investors Case Study Help consists of the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires 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 individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be used to examine the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to bring in new entrants to the publishing market. The existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement products for the released documents is the files provided in the digital libraries on specific websites. The altering consumer choices towards digital knowing increase the risk of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Aviva Investors Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 purchasers requires high quality documents at competitive rates.
Rivals Analysis.
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 greatest market share in the Chinese publishing market. Major competitors of Aviva Investors Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the same duration, CIP releases similar kind of books. For a big period, CIP held the biggest market share, and still ranks third and 2nd in numerous market segments, with a major focus on educational publications. CIP serves as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of Aviva Investors Case Study Help easily in the current market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as Aviva Investors Case Study Solution and CIP. It is likewise one of the popular players in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose need of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company need an immediate service to prevent the decreasing market development. The business might also consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company ought to first gathers the data connected to the consumer demand, the potential markets, the government guidelines and the data related to the competitors presented in the market. After that, the company must choose one potential section for its preliminary offering. It needs to collect research that how it might differentiate its digital publishing from the existing rivals' products. The steps above the business ought to go for the preliminary offering. The business must go for the other markets if the preliminary offering proves a success. In this way the company would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining considering that 2008, showing a threat to the company's long term presence, however the situation can be controlled by considering an advancement strategy in the future. The business might think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entrance in the new markets.
