Cresud Sa Farmer Or Real Estate Developer Case Study Solution and Analysis
Introduction
Cresud Sa Farmer Or Real Estate Developer Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting information, processing info and interaction services. Major company sections of the company consist of; books, periodicals, consultancy and distribution. The company has a huge item portfolio and its major items consist of books, periodicals, online media, exhibitions, research reports and so on. Cresud Sa Farmer Or Real Estate Developer Case Study Analysis has become a specialized information provider and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
Although, Cresud Sa Farmer Or Real Estate Developer Case Study Solution has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing market in general and CMP in specific. These factors include;
• Entrance of the new publishing firms in the market.
• Decreasing 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 questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the company could be utilized 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
Cresud Sa Farmer Or Real Estate Developer Case Study Analysis has specific strengths that can be made use of to decrease the dangers, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Cresud Sa Farmer Or Real Estate Developer Case Study Help in the publishing market i.e. 60 years enables the company to supply high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and supply high worth to its consumers.
• Strong monetary position enables the company to consider numerous advancement opportunities without any fear of raising fund externally.
Weak points
Together with the strengths, the company has particular weak points which might increase constraints for the business in executing its development program. The weak points of Cresud Sa Farmer Or Real Estate Developer Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific growth strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is declining since 2008, affecting Cresud Sa Farmer Or Real Estate Developer Case Study Solution as well, however the development could be revived by availing particular opportunities provided in the market. The market chances for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large funds.
Threats
The altering macro patterns in the market and increasing competitors in the publishing market has postured certain dangers to Cresud Sa Farmer Or Real Estate Developer Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of Cresud Sa Farmer Or Real Estate Developer Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing certain methods like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the market in addition to presence of high competitors increases the risk of losing the customer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP might not be computed. It could be analyzed from the Appendix III that the annual overall incomes of Cresud Sa Farmer Or Real Estate Developer Case Study Solution during the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of CMP is growing and the business is rather efficient in drawing in a large number of consumers at a prospective price.
Along with it, the 2nd graph which reveals the yearly development in the Cresud Sa Farmer Or Real Estate Developer Case Study Help total properties, reveals that the business is quite efficient in adding worth to its possessions through its revenues. The development in properties shows that the total value of the company is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company using the provided information might be the analysis concerning the distribution of overall earnings of the business. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sections with a potential growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the numerous external forces impacting the performance of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. It could be stated that the general 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 impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques etc. Enhancement of science and technology in addition to the rise of digital publishing could minimize the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Cresud Sa Farmer Or Real Estate Developer Case Study Help includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in new entrants to the publishing industry. However, the presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Threat of Substitution is high for the Chinese Publishing Industry. The substitute items for the released documents is the documents presented in the digital libraries on particular websites. The changing customer preferences towards digital knowing increase the risk of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Cresud Sa Farmer Or Real Estate Developer Case Study Help include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of a great deal of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Cresud Sa Farmer Or Real Estate Developer Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the exact same period, CIP releases comparable type of books. For a large time period, CIP held the largest market share, and still ranks third and 2nd in numerous market sections, with a major focus on academic publications. CIP serves 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 could wean the marketplace share of Cresud Sa Farmer Or Real Estate Developer Case Study Help easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Cresud Sa Farmer Or Real Estate Developer Case Study Analysis and CIP. It is likewise one of the popular players in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the business to lose demand of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company together with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the company require an immediate option to prevent the declining market development. For that reason, intro of digital publishing might prove to be an instant option with low amount of threat for the company. The company could likewise think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company needs to initially collects the data associated with the consumer demand, the potential markets, the federal government policies and the data related to the rivals provided in the market. After that, the business should choose one potential section for its preliminary offering. It ought to gather research that how it might differentiate its digital publishing from the existing rivals' items. The steps above the business should go for the initial offering. If the preliminary offering shows a success, the company ought to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing since 2008, revealing a risk to the company's long term presence, but the situation can be managed by thinking about a development strategy in the future. The business might think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
