Eagle Finance Corp A Case Study Solution and Analysis
Eagle Finance Corp A Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services including; gathering information, processing info and communication services. Significant business sectors of the business consist of; books, regulars, consultancy and distribution. The company has a large product portfolio and its significant products consist of books, regulars, online media, exhibitions, research reports and so on. Eagle Finance Corp A Case Study Help has become a specialized info provider and a big thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Eagle Finance Corp A Case Study Help has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing industry in basic and CMP in particular. These aspects consist of;
• Entrance of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the business 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 Solution has certain strengths that can be made use of to decrease the risks, overcome the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Eagle Finance Corp A Case Study Solution in the publishing industry i.e. 60 years enables the business to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its successful journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and supply high value to its consumers.
• Strong monetary position allows the business to think about numerous development opportunities with no worry of raising fund externally.
Together with the strengths, the company has specific weaknesses which might increase constraints for the business in executing its development program. The weaknesses of Eagle Finance Corp A Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain expansion strategies to avoid its dependence over the Chinese markets to accomplish long term growth.
The growth of the publishing industry is decreasing given that 2008, affecting Eagle Finance Corp A Case Study Solution as well, but the growth might be restored by availing specific chances provided in the market. The market chances for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge financial resources.
The changing macro trends in the market and increasing competition in the publishing market has actually positioned particular risks to Eagle Finance Corp A Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Eagle Finance Corp A Case Study Solution due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the market in addition to presence of high competition increases the danger of losing the consumer base.
Due to absence of data, the financial ratios of CMP could not be computed. It could be examined from the Appendix III that the yearly total earnings of Eagle Finance Corp A Case Study Analysis during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the company is rather effective in drawing in a large number of customers at a prospective cost.
Together with it, the second graph which shows the annual growth in the Eagle Finance Corp A Case Study Help total properties, shows that the company is rather efficient in including value to its assets through its revenues. The growth in assets reveals that the overall worth of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business utilizing the given data might be the analysis regarding the circulation of total profits of the business. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company sections with a potential growth to achieve its future development objective.
PESTEL analysis could be carried out to discover the numerous external forces affecting the efficiency of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a substantial influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. It could be stated that the total political forces affecting CMP organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer choices.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and technology along with the increase of digital publishing could minimize the need for the CMP items, if certain actions would not be taken quickly.
Ecological forces affecting Eagle Finance Corp A Case Study Analysis includes the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing should not be harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to examine the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to bring in brand-new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Risk of Replacement.
Threat of Replacement is high for the Chinese Publishing Market. The replacement products for the released documents is the documents provided in the digital libraries on certain sites. The changing consumer choices towards digital learning increase the risk of replacement for the market.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Eagle Finance Corp A Case Study Analysis include the providers of the paper for releasing documents. 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 Purchaser.
Haggling 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 market saturation, the purchasers requires high quality files at competitive rates.
CMP runs in a highly competitive industry with the existence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Eagle Finance Corp A Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger for CMP as it could 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 existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as Eagle Finance Corp A Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
• Use of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose demand of its items in the market.
As the choices are shifting towards digital publishing and the company need an immediate option to avoid the decreasing industry growth. The company could likewise consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business needs to first collects the data related to the customer demand, the potential markets, the government policies and the information related to the rivals presented in the market. If the initial offering shows a success, the business should go for the other markets. In this method the business would be able to implement its digital publishing program.
The growth of the publishing industry is declining considering that 2008, revealing a threat to the company's long term presence, but the scenario can be controlled by thinking about a development 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 prevent the danger of failure for entryway in the new markets.