Essay On Corporate Reporting Case Study Solution and Analysis
Essay On Corporate Reporting Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services including; collecting details, processing info and communication services. Significant company segments of the company include; books, periodicals, consultancy and distribution. The company has a huge item portfolio and its significant products consist of books, periodicals, online media, exhibitions, research study reports and so on. Essay On Corporate Reporting Case Study Help has ended up being a specialized information service provider and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Essay On Corporate Reporting Case Study Analysis has spent its 60 years journey smoothly, being an effective publishing home, however, the altering macro market trends and forces bring certain challenges to the publishing market in general and CMP in particular. These factors include;
• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• 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 circumstance? Do the long important experience, technical resources and the capabilities of the business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Essay On Corporate Reporting Case Study Solution has specific strengths that can be used to decrease the hazards, overcome the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Essay On Corporate Reporting Case Study Solution in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and supply high value to its clients.
• Strong monetary position enables the company to think about a number of advancement opportunities without any fear of raising fund externally.
In addition to the strengths, the business has certain weak points which might increase restrictions for the company in implementing its advancement program. The weak points of Essay On Corporate Reporting Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific growth strategies to prevent its reliance over the Chinese markets to accomplish long term development.
The development of the publishing market is decreasing because 2008, impacting Essay On Corporate Reporting Case Study Help as well, but the growth could be revived by availing particular chances presented in the market. The marketplace chances for CMP consist of;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its huge financial resources.
The altering macro patterns in the market and increasing competition in the publishing market has actually presented certain hazards to Essay On Corporate Reporting Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Essay On Corporate Reporting Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using specific strategies like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the market along with existence of high competitors increases the threat of losing the customer base.
Due to absence of data, the financial ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the yearly overall earnings of Essay On Corporate Reporting Case Study Analysis during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the company is quite efficient in bring in a large number of consumers at a possible price.
Together with it, the 2nd graph which shows the annual growth in the Essay On Corporate Reporting Case Study Solution overall possessions, shows that the company is rather efficient in including worth to its possessions through its profits. The growth in possessions reveals that the overall value of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the company using the given data might be the analysis concerning the distribution of overall profits of the business. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation segments with a possible growth to achieve its future advancement objective.
PESTEL analysis could be carried out to discover the numerous external forces impacting the efficiency of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant influence on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. It could be stated that the general political forces affecting CMP company are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the Essay On Corporate Reporting Case Study Help in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the demand for the publishing market. In addition to it, the financial policies related to the import of books impact the overall business at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards reading useful products and so on. China has the highest population in the world with a high population growth, revealing the increasing number of customers of the Essay On Corporate Reporting Case Study Help. The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing consumer preferences.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and technology in addition to the increase of digital publishing might reduce the demand for the CMP items, if certain actions would not be taken soon.
Ecological forces impacting Essay On Corporate Reporting Case Study Analysis consists of the issues of ecological communities 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 must not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to examine the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Replacement.
Threat of Replacement is high for the Chinese Publishing Industry. The substitute items for the published documents is the documents presented in the virtual libraries on certain sites. The altering consumer preferences towards digital knowing increase the danger of substitution for the market.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Essay On Corporate Reporting Case Study Analysis include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser 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 rates.
CMP runs in an extremely competitive market with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Essay On Corporate Reporting Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same duration, CIP releases similar type of books. For a large period, CIP held the largest market share, and still ranks third and 2nd in different market sections, with a significant focus on educational publications. CIP functions 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 might wean the market share of Essay On Corporate Reporting Case Study Help quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Essay On Corporate Reporting Case Study Help and CIP. It is likewise one of the prominent players in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
• 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 demand of its items in the market.
With the deep analysis of the internal and external environment of the company along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the company require an instant service to avoid the decreasing market growth. Therefore, intro of digital publishing could show to be an instant option with low quantity of danger for the business. The company might also think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company needs to first collects the information related to the consumer need, the possible markets, the federal government policies and the data related to the rivals presented in the market. If the initial offering proves a success, the business needs to go for the other markets. In this way the company would be able to implement its digital publishing program.
Although, the growth of the publishing industry is declining considering that 2008, showing a hazard to the business's long term existence, however the scenario can be controlled by considering a development plan in the future. The company could consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entryway in the new markets.