Emirates Banks Case Study Solution and Analysis
Introduction
Emirates Banks Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details company and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
CMP has spent its 60 years journey efficiently, being an effective publishing home, however, the changing macro market trends and forces bring specific obstacles to the publishing industry in general and Emirates Banks Case Study Help in particular. These aspects consist of;
• Entrance of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised a number of 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 company could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Emirates Banks Case Study Solution has certain strengths that can be made use of to lower the threats, get rid of the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Emirates Banks Case Study Help in the publishing market i.e. 60 years permits the company to provide high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its threat and offer high worth to its consumers.
• Strong monetary position enables the company to consider numerous development chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weak points which could increase constraints for the company in executing its advancement program. The weaknesses of Emirates Banks Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose certain expansion strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing market is decreasing given that 2008, impacting Emirates Banks Case Study Solution as well, but the development might be restored by availing particular opportunities provided in the market. The marketplace chances for CMP consist of;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its huge financial resources.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing market has positioned specific risks to Emirates Banks Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause declining market share of Emirates Banks Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using particular strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the market along with presence of high competitors increases the danger of losing the customer base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to absence of data, the monetary ratios of CMP could not be determined. The total financial performance of the company might be analyzed by using the charts provided in the case Appendices. It could be examined from the Appendix III that the yearly overall profits of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of Emirates Banks Case Study Solution is growing and the business is rather effective in attracting a large number of clients at a possible rate.
Along with it, the second chart which shows the yearly development in the Emirates Banks Case Study Analysis total assets, shows that the company is rather efficient in adding worth to its possessions through its revenues. The development in properties reveals that the overall value of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the business using the provided data could be the analysis concerning the circulation of total earnings 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 company might move towards other organisation sectors with a possible growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the different external forces impacting the performance of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. It could be stated that the general political forces affecting CMP business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards checking out helpful products etc. China has the highest population on the planet with a high population growth, showing the increasing variety of customers of the Emirates Banks Case Study Solution. However, the consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies and so on. Improvement of science and technology in addition to the rise of digital publishing could reduce the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Emirates Banks Case Study Analysis consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding 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 entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be utilized to analyze the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to draw in new entrants to the publishing market. The existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Danger of Replacement.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative products for the released files is the files provided in the digital libraries on certain sites. The altering consumer preferences towards digital learning 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 rivalry for CMP. In addition to it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Emirates Banks Case Study Help include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
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 market saturation, the buyers requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Emirates Banks Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as Emirates Banks Case Study Analysis and CIP. It is also one of the popular players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments 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 external and internal environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the company require an immediate option to avoid the declining market development. Introduction of digital publishing might prove to be an immediate option with low amount of threat for the company. However, the company could also consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business should initially gathers the data associated with the customer need, the prospective markets, the federal government guidelines and the data associated with the rivals presented in the market. After that, the business must decide one prospective sector for its preliminary offering. It should gather research that how it could separate its digital publishing from the existing rivals' products. The steps above the company ought to go for the preliminary offering. The business should go for the other markets if the preliminary offering proves a success. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining considering that 2008, revealing a threat to the business's long term presence, however the scenario can be controlled by considering a development plan in the future. The business could consider introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entryway in the new markets.
