Eagle Finance Corp A Case Study Solution and Analysis
Eagle Finance Corp A Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting information, processing information and communication services. Major service sectors of the business consist of; books, periodicals, consultancy and distribution. The business has a vast item portfolio and its significant products consist of books, periodicals, online media, exhibits, research study reports and so on. Eagle Finance Corp A Case Study Solution has become a specialized details supplier and a large extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
CMP has spent its 60 years journey efficiently, being an effective publishing home, however, the altering macro market trends and forces bring specific obstacles to the publishing market in general and Eagle Finance Corp A Case Study Analysis in specific. These factors 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 innovation.
The improvement of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the company could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Eagle Finance Corp A Case Study Analysis has certain strengths that can be used to minimize the risks, conquer the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Eagle Finance Corp A Case Study Analysis in the publishing market i.e. 60 years allows the business to provide high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and provide high value to its clients.
• Strong monetary position permits the company to think about a number of advancement chances with no fear of raising fund externally.
Together with the strengths, the business has particular weak points which might increase restrictions for the business in implementing its development program. The weaknesses of Eagle Finance Corp A Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific growth strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Although, the growth of the publishing industry is declining since 2008, impacting Eagle Finance Corp A Case Study Analysis too, however the growth could be revived by availing certain chances provided in the market. The market chances for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast financial resources.
The altering macro patterns in the market and increasing competition in the publishing industry has actually presented specific risks to Eagle Finance Corp A Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to decreasing market share of Eagle Finance Corp A Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing certain methods like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the market along with presence of high competition increases the threat of losing the consumer base.
The business has a quite competitive financial efficiency. Due to absence of information, the financial ratios of CMP could not be determined. The overall financial efficiency of the company could be examined by utilizing the charts given in the case Appendices. It might be analyzed from the Appendix III that the yearly overall revenues of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of Eagle Finance Corp A Case Study Help is growing and the company is rather effective in bring in a large number of clients at a possible rate.
Along with it, the second graph which reveals the annual growth in the Eagle Finance Corp A Case Study Analysis overall assets, shows that the business is rather effective in including worth to its possessions through its revenues. The growth in assets shows that the total worth of the firm is likewise increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the business using the offered data could be the analysis regarding the distribution of overall profits of the business. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation sectors with a potential growth to achieve its future development goal.
PESTEL analysis might be carried out to discover the different external forces affecting the performance of the business and the current patterns in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant impact on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the total political forces affecting Eagle Finance Corp A Case Study Help business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the Eagle Finance Corp A Case Study Analysis in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces integrate effect the need for the publishing market. In addition to it, the economic policies connected to the import of books affect the total organisation at CPM. However, China's economic conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards checking out informative materials etc. China has the highest population worldwide with a high population growth, revealing the increasing variety of customers of the Eagle Finance Corp A Case Study Help. Nevertheless, the consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must concentrate on digital publishing to meet the changing consumer choices.
Technological forces impacting the CMP include the technological improvement in the reading techniques and so on. Enhancement of science and innovation along with the rise of digital publishing might decrease the need for the CMP products, if specific actions would not be taken quickly.
Environmental forces impacting Eagle Finance Corp A Case Study Help includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to examine the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to draw in new entrants to the publishing market. Nevertheless, the presence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Danger of Substitution.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement products for the published files is the files provided in the digital libraries on certain sites. The altering consumer preferences towards digital knowing increase the hazard of replacement for the industry.
Competitive rivalry in the publishing market is high. The presence of a great deal 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 also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Eagle Finance Corp A Case Study Help include the providers 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 Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive rates.
CMP operates in a highly competitive industry with the existence of a great deal of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Eagle Finance Corp A Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same period, CIP publishes comparable type of books. For a big period, CIP held the largest market share, and still ranks second and third in different market sections, with a significant focus on instructional publications. CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Eagle Finance Corp A Case Study Help quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is also one of the popular gamers in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
• 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 demand of its items in the market.
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are moving towards digital publishing and the company require an instant solution to avoid the declining industry growth. Intro of digital publishing could prove to be an instant solution with low quantity of risk 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 item portfolio, the company needs to first collects the information connected to the consumer need, the potential markets, the federal government policies and the information related to the rivals provided in the market. After that, the business must decide one possible sector for its initial offering. It should gather research that how it could separate its digital publishing from the existing competitors' products. The steps above the company should go for the preliminary offering. If the preliminary offering proves a success, the business should choose the other markets. In this way the business would be able to execute its digital publishing program.
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 managed by thinking about an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entryway in the new markets.