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Ecg Group Fraud And Liquidation Of A Joint Venture In China Case Analysis

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Ecg Group Fraud And Liquidation Of A Joint Venture In China Case Study Solution and Analysis


Introduction

Ecg Group Fraud And Liquidation Of A Joint Venture In China Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP provides a number of services consisting of; gathering details, processing info and communication services. Major organisation sectors of the business consist of; books, periodicals, consultancy and circulation. The business has a vast item portfolio and its significant items include books, periodicals, online media, exhibitions, research reports etc. Ecg Group Fraud And Liquidation Of A Joint Venture In China Case Study Help has actually ended up being a specialized details service provider and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.

Vital Issues

CMP has actually spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market trends and forces bring specific challenges to the publishing industry in basic and Ecg Group Fraud And Liquidation Of A Joint Venture In China Case Study Analysis in particular. These elements consist of;

• Entrance of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
Executive Summary
The transformation of the macro markets have raised numerous questions 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 abilities of the business 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


Ecg Group Fraud And Liquidation Of A Joint Venture In China Case Study Analysis has certain strengths that can be utilized to lower the risks, overcome the weak point and get the chances. Strengths of CMP are offered as follows;

• The long term experience of Ecg Group Fraud And Liquidation Of A Joint Venture In China Case Study Solution in the publishing industry i.e. 60 years enables the business to provide high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and supply high worth to its customers.
• Strong monetary position enables the business to think about numerous advancement opportunities with no worry of raising fund externally.

Weaknesses

In addition to the strengths, the company has particular weak points which could increase constraints for the company in executing its development program. The weaknesses of Ecg Group Fraud And Liquidation Of A Joint Venture In China Case Study Solution are provided as follows;

• Despite of being a science and technology publishing company, the company still has standard methods 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 attain long term growth.
Porter's 5 Forces Analysis
Opportunities

The growth of the publishing industry is declining given that 2008, affecting Ecg Group Fraud And Liquidation Of A Joint Venture In China Case Study Help as well, however the growth could be restored by availing particular opportunities provided in the market. The marketplace chances for CMP include;

• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its large funds.

Hazards

The changing macro patterns in the market and increasing competition in the publishing market has postured specific dangers to Ecg Group Fraud And Liquidation Of A Joint Venture In China Case Study Help consisting of;( Gurel, 2017).

• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Ecg Group Fraud And Liquidation Of A Joint Venture In China Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using certain methods like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the market in addition to presence of high competition increases the threat of losing the client base.

Monetary Analysis.
Swot Analysis
Due to absence of data, the monetary ratios of CMP could not be calculated. It might be evaluated from the Appendix III that the yearly total revenues of Ecg Group Fraud And Liquidation Of A Joint Venture In China Case Study Help throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the business is quite efficient in attracting a big number of clients at a potential cost.

Together with it, the second chart which reveals the yearly development in the Ecg Group Fraud And Liquidation Of A Joint Venture In China Case Study Analysis overall properties, reveals that the business is quite effective in adding worth to its properties through its revenues. The development in properties reveals that the overall value of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).

Another financial analysis of the company using the offered information could be the analysis relating to the circulation of overall profits of the company. Major 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 company could move towards other organisation sections with a potential development to attain its future advancement goal.

PESTEL Analysis

PESTEL analysis could be conducted to discover the numerous external forces impacting the performance of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).

Political.

As the publishing sector might have a significant impact on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. Therefore, it could be stated that the general political forces impacting Ecg Group Fraud And Liquidation Of A Joint Venture In China Case Study Solution company are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.

Cost-effective.

Financial forces affecting the publishing sector in basic and the Ecg Group Fraud And Liquidation Of A Joint Venture In China Case Study Analysis in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the need for the publishing market. In addition to it, the economic policies connected to the import of books affect the general company at CPM. However, China's economic conditions are quite favorable for CMP with high GDP growth and consumer earnings level.

Social and Demographical.

The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing consumer preferences.

Technological.

Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and innovation along with the increase of digital publishing could lower the demand for the CMP products, if certain actions would not be taken soon.

Environmental.
Vrio Analysis
Environmental forces impacting Ecg Group Fraud And Liquidation Of A Joint Venture In China Case Study Analysis consists of the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing should not be hazardous for the environment.

Legal.

Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.

Industry Analysis (Porter's 5 Forces Design).

Porter's Five Forces Design could be utilized to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.

Hazard of New Entrants.

Dangers of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to bring in new entrants to the publishing industry. The presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.

Danger of Replacement.

Hazard of Replacement is high for the Chinese Publishing Industry. The substitute items for the published files is the files provided in the digital libraries on particular sites. The changing customer choices towards digital learning increase the risk of substitution for the industry.

Competitive Competition.

Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also participating in the market increasing the competition for CMP.

Bargaining Power of Supplier.

The major providers of the Ecg Group Fraud And Liquidation Of A Joint Venture In China Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.

Bargaining Power of Purchaser.

Bargaining power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.

Rivals Analysis.

CMP operates in an extremely competitive market with the existence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Ecg Group Fraud And Liquidation Of A Joint Venture In China Case Study Analysis include;.

• Chemical Industry 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 might wean the market share of CMP easily in the present market scenario.

Posts and telecommunication Press (PTP).

Another close rival of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise among the prominent players in the publishing industry with an annual total revenues of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.

Cons
Recommendations
• Use of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.

Cons

• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose need of its items in the market.

Suggestions

With the deep analysis of the external and internal environment of the company along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the company need an instant service to avoid the decreasing industry development. Therefore, intro of digital publishing could show to be an immediate option with low quantity of danger for the business. However, the company could also consider the growth program after the success of its digital publishing program.

Execution

In order to present digital publishing in its product portfolio, the company needs to first gathers the data related to the consumer need, the possible markets, the federal government guidelines and the data connected to the rivals presented in the market. After that, the business should decide one prospective sector for its preliminary offering. It needs to gather research study that how it could differentiate its digital publishing from the existing rivals' items. After all the actions above the business should go for the initial offering. If the preliminary offering shows a success, the company must go for the other markets. In this way the company would be able to execute its digital publishing program.

Conclusion

The development of the publishing industry is decreasing because 2008, showing a threat to the company's long term presence, however the scenario can be controlled by considering an advancement plan in the future. The business could consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entrance in the new markets.

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