Bank Of America And The Chinese Credit Card Market Case Study Solution and Analysis
Intro
Bank Of America And The Chinese Credit Card Market Case Study Solution is the biggest publishing business 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 comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has invested its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring particular difficulties to the publishing industry in basic and Bank Of America And The Chinese Credit Card Market Case Study Solution in particular. These aspects include;
• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
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 circumstance? Do the long important experience, technical resources and the capabilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Bank Of America And The Chinese Credit Card Market Case Study Solution has specific strengths that can be used to minimize the risks, get rid of the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Bank Of America And The Chinese Credit Card Market Case Study Analysis in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and supply high value to its consumers.
• Strong financial position allows the business to think about a number of advancement chances without any fear of raising fund externally.
Weak points
Along with the strengths, the company has certain weaknesses which might increase restrictions for the company in implementing its development program. The weaknesses of Bank Of America And The Chinese Credit Card Market Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific expansion strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is declining given that 2008, affecting Bank Of America And The Chinese Credit Card Market Case Study Analysis as well, but the development might be restored by availing particular 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 customer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast financial resources.
Hazards
The altering macro trends in the market and increasing competitors in the publishing market has postured particular dangers to Bank Of America And The Chinese Credit Card Market Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Bank Of America And The Chinese Credit Card Market Case Study Analysis due to the consumer shift towards digital libraries.
• The existence 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 consumer base by utilizing specific methods like aggressive promotion, quality items, etc.
• Entrance of new publishing companies in the industry along with existence of high competitors increases the risk of losing the client base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP might not be computed. It could be evaluated from the Appendix III that the annual total incomes of Bank Of America And The Chinese Credit Card Market Case Study Analysis during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of CMP is growing and the company is quite efficient in attracting a large number of clients at a potential price.
Along with it, the second graph which shows the annual development in the Bank Of America And The Chinese Credit Card Market Case Study Analysis total possessions, reveals that the business is quite efficient in adding value to its assets through its revenues. The growth in possessions reveals that the overall worth of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the business using the provided information could be the analysis concerning the circulation 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 company could move towards other organisation segments with a possible development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the numerous external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. Therefore, it might be stated that the total political forces affecting Bank Of America And The Chinese Credit Card Market Case Study Solution service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards reading helpful materials etc. China has the greatest population in the world with a high population growth, revealing the increasing variety of consumers of the Bank Of America And The Chinese Credit Card Market Case Study Analysis. However, the consumer choices are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods etc. Enhancement of science and innovation along with the rise of digital publishing might minimize the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Bank Of America And The Chinese Credit Card Market Case Study Help includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized 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.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be used to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in new entrants to the publishing industry. Nevertheless, the existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Danger of Substitution.
Risk of Alternative is high for the Chinese Publishing Industry. The substitute items for the released documents is the files provided in the digital libraries on particular sites. The altering customer choices towards digital knowing increase the threat of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Bank Of America And The Chinese Credit Card Market Case Study Help include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Bank Of America And The Chinese Credit Card Market Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also one of the prominent players in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competition 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 demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are moving towards digital publishing and the business require an instant option to avoid the declining market development. Intro of digital publishing might show to be an instant solution with low amount of danger for the business. However, the business might also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business should first gathers the information related to the consumer need, the prospective markets, the government policies and the data related to the rivals provided in the market. If the initial offering shows a success, the business must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining since 2008, revealing a danger to the business's long term existence, however the scenario can be controlled by thinking about an advancement plan in the future. The business could consider introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entrance in the new markets.
