Colombia Strong Fundamentals Global Risk Case Study Solution and Analysis
Intro
Colombia Strong Fundamentals Global Risk Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized details company and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
Although, Colombia Strong Fundamentals Global Risk Case Study Help has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring specific difficulties to the publishing industry in basic and CMP in specific. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The improvement 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 abilities 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
Colombia Strong Fundamentals Global Risk Case Study Help has specific strengths that can be utilized to lower the hazards, get rid of the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Colombia Strong Fundamentals Global Risk Case Study Analysis in the publishing market i.e. 60 years allows the company to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and provide high value to its clients.
• Strong monetary position allows the company to consider a number of advancement chances with no worry of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weaknesses which could increase restrictions for the company in executing its advancement program. The weak points of Colombia Strong Fundamentals Global Risk Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the business 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 should propose specific expansion strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing market is decreasing since 2008, impacting Colombia Strong Fundamentals Global Risk Case Study Help as well, but the development might be revived by availing specific chances provided in the market. The market opportunities for CMP consist of;
• The business could also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its vast financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has actually postured specific threats to Colombia Strong Fundamentals Global Risk Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Colombia Strong Fundamentals Global Risk Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing specific strategies like aggressive promotion, quality products, and so on
• Entrance of new publishing firms in the market together with existence of high competitors increases the danger of losing the client base.
Monetary Analysis.
The business has a quite competitive financial efficiency. Due to absence of information, the monetary ratios of CMP might not be computed. The overall financial efficiency of the business could be analyzed by utilizing the charts given in the case Appendices. It could be analyzed from the Appendix III that the annual total profits of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of Colombia Strong Fundamentals Global Risk Case Study Help is growing and the company is quite efficient in attracting a large number of clients at a possible price.
Along with it, the 2nd graph which shows the yearly growth in the Colombia Strong Fundamentals Global Risk Case Study Analysis overall properties, reveals that the business is rather effective in including value to its possessions through its incomes. The development in assets shows that the total value of the company is also increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business utilizing the offered data might be the analysis regarding the circulation of overall earnings of the company. 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 business might move towards other company sectors with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the various external forces impacting the efficiency of the company 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 might have a considerable influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. Therefore, it could be said that the general political forces affecting Colombia Strong Fundamentals Global Risk Case Study Solution company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the Colombia Strong Fundamentals Global Risk Case Study Analysis in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the need for the publishing market. Along with it, the economic policies related to the import of books impact the overall company at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards checking out helpful materials etc. China has the greatest population in the world with a high population growth, revealing the increasing number of consumers of the Colombia Strong Fundamentals Global Risk Case Study Analysis. The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must concentrate on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and innovation along with the rise of digital publishing could reduce the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Colombia Strong Fundamentals Global Risk Case Study Solution consists of the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be used to examine the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to draw in new entrants to the publishing market. However, the presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Threat of Alternative.
Threat of Alternative is high for the Chinese Publishing Industry. The alternative items for the released files is the files presented in the virtual libraries on particular websites. The changing consumer choices towards digital knowing increase the hazard of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Colombia Strong Fundamentals Global Risk Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
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 market saturation, the purchasers needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Colombia Strong Fundamentals Global Risk Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it might 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 easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise among the popular players in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the company need an immediate solution to avoid the decreasing market development. The company might also consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company must initially gathers the data connected to the customer demand, the potential markets, the government guidelines and the data associated with the competitors presented in the market. After that, the company ought to choose one possible section for its initial offering. It should gather research that how it could separate its digital publishing from the existing competitors' products. After all the steps above the business need to choose the preliminary offering. The company must go for the other markets if the preliminary offering proves a success. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining since 2008, revealing a risk to the business's long term presence, but the situation can be managed by thinking about a development plan in the future. The company could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
