Citibank Stock Index Insured Account Case Study Solution and Analysis
Citibank Stock Index Insured Account Case Study Analysis 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 big extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring certain difficulties to the publishing industry in basic and Citibank Stock Index Insured Account Case Study Help in particular. These aspects consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised several concerns 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 capabilities of the company could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Citibank Stock Index Insured Account Case Study Help has certain strengths that can be utilized to minimize the hazards, get rid of the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Citibank Stock Index Insured Account Case Study Solution in the publishing market i.e. 60 years permits the company to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its danger and provide high value to its clients.
• Strong financial position permits the business to think about a number of development chances with no worry of raising fund externally.
In addition to the strengths, the company has specific weak points which might increase restrictions for the business in implementing its development program. The weak points of Citibank Stock Index Insured Account Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific expansion plans to prevent its reliance over the Chinese markets to achieve long term development.
Although, the growth of the publishing industry is decreasing since 2008, affecting Citibank Stock Index Insured Account Case Study Solution also, however the growth could be revived by availing specific opportunities presented 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 recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its vast funds.
The altering macro trends in the market and increasing competition in the publishing industry has actually presented specific threats to Citibank Stock Index Insured Account Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Citibank Stock Index Insured Account Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using certain strategies like aggressive promo, quality items, and so on
• Entrance of new publishing companies in the industry along with presence of high competition increases the danger of losing the consumer base.
The business has a quite competitive financial performance. Due to absence of information, the monetary ratios of CMP could not be computed. The total monetary performance of the business might be evaluated by using the charts provided in the case Appendices. It might be examined from the Appendix III that the annual overall revenues of CMP during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the products of Citibank Stock Index Insured Account Case Study Help is growing and the company is quite effective in attracting a a great deal of consumers at a possible rate.
Together with it, the 2nd chart which reveals the annual growth in the Citibank Stock Index Insured Account Case Study Analysis overall assets, shows that the business is quite effective in adding worth to its properties through its profits. The development in properties shows that the overall worth of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the company using the provided information might be the analysis concerning the circulation of overall incomes of the business. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sections with a prospective development to attain its future development goal.
PESTEL analysis might be conducted to learn the different external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a substantial impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. It could be stated that the overall political forces impacting CMP company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Citibank Stock Index Insured Account Case Study Analysis in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine effect the need for the publishing market. Along with it, the financial policies related to the import of books impact the total organisation at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer preferences.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Improvement of science and innovation in addition to the increase of digital publishing might minimize the demand for the CMP products, if specific actions would not be taken soon.
Ecological forces impacting Citibank Stock Index Insured Account Case Study Help consists of the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to examine the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to attract new entrants to the publishing market. The presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Alternative.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement items for the published documents is the documents presented in the virtual libraries on specific sites. The changing consumer choices towards digital learning increase the risk of alternative for the market.
Competitive rivalry in the publishing industry is high. The presence 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. Along with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Citibank Stock Index Insured Account Case Study Help include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general 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 a great deal 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 existence of large number of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Citibank Stock Index Insured Account Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same period, CIP releases comparable kind of books. For a big period, CIP held the largest market share, and still ranks third and second in numerous market sectors, with a major focus on instructional publications. CIP acts 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 marketplace share of Citibank Stock Index Insured Account Case Study Solution quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise one of the popular gamers in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Usage of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
• Competitors 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 company to lose need of its products in the market.
With the deep analysis of the internal and external environment of the business along with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the choices are moving towards digital publishing and the company need an immediate solution to prevent the declining industry development. Intro of digital publishing could prove to be an immediate service with low amount of danger for the company. However, the company might likewise 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 ought to initially collects the information related to the customer need, the prospective markets, the government guidelines and the information related to the rivals provided in the market. If the initial 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.
Although, the development of the publishing industry is decreasing given that 2008, showing a danger to the business's long term existence, however the scenario can be managed by considering a development plan in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entrance in the new markets.