Dunia Finance Case Study Solution and Analysis
Intro
Dunia Finance Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized information supplier and a big detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Issues
Although, Dunia Finance Case Study Solution has actually spent its 60 years journey smoothly, being an effective publishing home, however, the altering macro market trends and forces bring specific challenges to the publishing market in basic and CMP in specific. These elements consist of;
• Entrance of the brand-new publishing companies 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 several 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 company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Dunia Finance Case Study Analysis has particular strengths that can be used to reduce the hazards, get rid of the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Dunia Finance Case Study Analysis in the publishing market i.e. 60 years allows the business to supply high quality products at a lower expense using its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and offer high worth to its clients.
• Strong monetary position enables the business to think about numerous development opportunities without any worry of raising fund externally.
Weak points
Along with the strengths, the business has certain weaknesses which could increase restraints for the business in implementing its development program. The weak points of Dunia Finance Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular growth plans to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is declining because 2008, impacting Dunia Finance Case Study Help as well, but the development could be revived by availing specific opportunities provided in the market. The market chances 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 consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge financial resources.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing industry has posed specific dangers to Dunia Finance Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Dunia Finance Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing certain strategies like aggressive promo, quality products, etc.
• Entrance of new publishing companies in the industry in addition to existence of high competition increases the danger of losing the consumer base.
Financial Analysis.
The company has a rather competitive monetary efficiency. Due to absence of data, the monetary ratios of CMP could not be determined. The general monetary efficiency of the company might be analyzed by utilizing the graphs given in the case Appendices. It might be examined from the Appendix III that the yearly overall earnings of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of Dunia Finance Case Study Solution is growing and the business is rather efficient in drawing in a a great deal of customers at a possible price.
Together with it, the second graph which shows the annual development in the Dunia Finance Case Study Help total properties, reveals that the company is rather effective in adding worth to its assets through its incomes. The development in properties reveals that the total value of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided information could be the analysis relating to the distribution of total earnings of the company. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company segments with a possible development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the different external forces impacting the performance of the company and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. It could be stated that the general political forces impacting CMP organisation 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 basic and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards checking out useful materials etc. China has the highest population worldwide with a high population development, showing the increasing variety of customers of the Dunia Finance Case Study Analysis. Nevertheless, the consumer preferences are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques and so on. Improvement of science and innovation in addition to the rise of digital publishing might lower the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Dunia Finance Case Study Analysis includes the concerns of ecological 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 used while publishing should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies 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 gone into in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be used to examine the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to attract brand-new entrants to the publishing industry. The existence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Danger of Alternative.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative products for the published documents is the documents provided in the digital libraries on certain websites. The changing consumer choices towards digital knowing increase the hazard of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Dunia Finance Case Study Solution 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.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Dunia Finance Case Study Help include;.
• 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 might wean the market share of CMP easily in the present market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Dunia Finance Case Study Help and CIP. It is likewise one of the popular gamers in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 business sectors to the brand-new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future development. As the choices are moving towards digital publishing and the business need an instant service to prevent the decreasing industry development. For that reason, intro of digital publishing might prove to be an instant solution with low amount of risk for the company. However, the company could 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 first collects the data related to the customer demand, the possible markets, the government regulations and the data related to the rivals provided in the market. If the preliminary offering shows a success, the business ought to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing considering that 2008, showing a risk to the business's long term existence, however the situation can be controlled by thinking about an advancement plan in the future. The business could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entrance in the new markets.
