China Or The World Financial Reporting Strategy For Hong Kongs Capital Markets Case Study Solution and Analysis
Introduction
China Or The World Financial Reporting Strategy For Hong Kongs Capital Markets Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized info company and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
CMP has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing market in basic and China Or The World Financial Reporting Strategy For Hong Kongs Capital Markets Case Study Help in specific. These aspects include;
• Entrance of the new publishing companies in the market.
• 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 questions 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 made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
China Or The World Financial Reporting Strategy For Hong Kongs Capital Markets Case Study Help has specific strengths that can be utilized to reduce the dangers, conquer the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of China Or The World Financial Reporting Strategy For Hong Kongs Capital Markets Case Study Help in the publishing market i.e. 60 years permits the company to provide high quality products at a lower cost using its prior experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and supply high worth to its clients.
• Strong financial position permits the company to consider several advancement chances without any fear of raising fund externally.
Weak points
Together with the strengths, the company has specific weak points which might increase restraints for the company in implementing its development program. The weaknesses of China Or The World Financial Reporting Strategy For Hong Kongs Capital Markets Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific expansion strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is declining because 2008, affecting China Or The World Financial Reporting Strategy For Hong Kongs Capital Markets Case Study Solution also, however the development might be revived by availing specific opportunities provided in the market. The market opportunities for CMP consist of;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has posed certain threats to China Or The World Financial Reporting Strategy For Hong Kongs Capital Markets Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of China Or The World Financial Reporting Strategy For Hong Kongs Capital Markets Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing specific methods like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the market along with existence of high competitors increases the risk of losing the client base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP could not be computed. It could be analyzed from the Appendix III that the annual total earnings of China Or The World Financial Reporting Strategy For Hong Kongs Capital Markets Case Study Help during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of CMP is growing and the business is rather effective in attracting a big number of clients at a potential cost.
Along with it, the second chart which shows the annual growth in the China Or The World Financial Reporting Strategy For Hong Kongs Capital Markets Case Study Help overall possessions, shows that the business is rather effective in including value to its possessions through its revenues. The development in possessions reveals that the overall value of the company is also increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the business utilizing the provided data could be the analysis regarding the distribution of overall incomes of the business. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sections with a possible development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the numerous external forces impacting the performance of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial 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 directed by the Promotion Department of the Communist Party of China. It might be said that the total political forces affecting CMP organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Enhancement of science and innovation together with the rise of digital publishing might decrease the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting China Or The World Financial Reporting Strategy For Hong Kongs Capital Markets Case Study Help includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing needs to not be damaging for the environment.
Legal.
Legal policies 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 needs the publishers to be approved 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 5 Forces Design could be used to evaluate the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to draw in brand-new entrants to the publishing industry. However, the presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard of Substitution.
Hazard of Substitution is high for the Chinese Publishing Market. The alternative items for the released files is the files presented in the digital libraries on specific websites. The altering customer preferences towards digital knowing increase the threat of replacement for the market.
Competitive Rivalry.
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 competition for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the China Or The World Financial Reporting Strategy For Hong Kongs Capital Markets Case Study Solution consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of China Or The World Financial Reporting Strategy For Hong Kongs Capital Markets Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 CMP quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as China Or The World Financial Reporting Strategy For Hong Kongs Capital Markets Case Study Analysis and CIP. It is likewise one of the popular gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the business require an instant option to prevent the decreasing industry growth. The company might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business needs to initially gathers the information connected to the customer demand, the prospective markets, the government policies and the information connected to the competitors provided in the market. After that, the company should decide one potential segment for its initial offering. It needs to collect research study that how it could differentiate its digital publishing from the existing rivals' products. After all the steps above the business need to choose the initial offering. If the initial offering proves a success, the company must go for the other markets. In this way the company would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining because 2008, showing a threat to the business's long term presence, however the scenario can be controlled by considering a development plan in the future. The company could think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entrance in the brand-new markets.
