Exima Agro Industrial Holdings Case Study Solution and Analysis
Exima Agro Industrial Holdings Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized information supplier and a large detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, Exima Agro Industrial Holdings Case Study Solution has invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring particular challenges to the publishing industry in general and CMP in specific. These factors consist of;
• Entrance of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the business could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Exima Agro Industrial Holdings Case Study Solution has specific strengths that can be utilized to decrease the risks, get rid of the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Exima Agro Industrial Holdings Case Study Help in the publishing industry i.e. 60 years allows the business to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and offer high worth to its consumers.
• Strong monetary position permits the company to consider numerous development opportunities with no worry of raising fund externally.
Along with the strengths, the business has certain weaknesses which could increase constraints for the company in executing its development program. The weaknesses of Exima Agro Industrial Holdings Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, 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 growth. It needs to propose certain growth plans to prevent its reliance over the Chinese markets to achieve long term development.
Although, the growth of the publishing industry is declining given that 2008, affecting Exima Agro Industrial Holdings Case Study Solution too, but the growth might be restored by availing specific opportunities presented in the market. The marketplace chances for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its large financial resources.
The changing macro patterns in the market and increasing competition in the publishing industry has actually positioned certain dangers to Exima Agro Industrial Holdings Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Exima Agro Industrial Holdings Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing certain methods like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing companies in the market in addition to existence of high competition increases the threat of losing the customer base.
Due to lack of information, the financial ratios of CMP might not be computed. It could be analyzed from the Appendix III that the yearly overall incomes of Exima Agro Industrial Holdings Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the company is rather effective in bring in a large number of clients at a possible cost.
Together with it, the second graph which shows the yearly growth in the Exima Agro Industrial Holdings Case Study Analysis overall possessions, reveals that the business is quite efficient in including value to its assets through its earnings. The growth in possessions reveals that the overall worth of the company is also increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the business using the offered data might be the analysis relating to the circulation of total earnings of the business. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sectors with a prospective development to attain its future development goal.
PESTEL analysis could be carried out to find out the various external forces affecting the performance of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a considerable effect on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the total political forces affecting Exima Agro Industrial Holdings Case Study Analysis organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the Exima Agro Industrial Holdings Case Study Analysis in particular includesthe rates of paper, the earnings 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. In addition to it, the economic policies connected to the import of books impact the total business at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer choices.
Technological forces impacting the CMP consist of the technological development in the reading techniques etc. Enhancement of science and technology along with the rise of digital publishing might lower the demand for the CMP products, if specific actions would not be taken soon.
Ecological forces impacting Exima Agro Industrial Holdings Case Study Help includes the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to evaluate the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to draw in new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Danger of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative items for the published documents is the documents presented in the virtual libraries on specific sites. The changing customer preferences towards digital knowing increase the hazard of replacement for the industry.
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. Together with it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Exima Agro Industrial Holdings Case Study Solution include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive rates.
CMP operates in an extremely competitive market with the existence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Exima Agro Industrial Holdings Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 also founded in the exact same period as Exima Agro Industrial Holdings Case Study Help and CIP. It is also one of the popular players in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of prospective 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 capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
• Competitors 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 need of its items in the market.
With the deep analysis of the external and internal environment of the company together with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the business need an instant option to avoid the declining industry growth. Intro of digital publishing could prove to be an instant solution with low quantity of threat for the company. The business might also think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company must initially collects the data associated with the customer need, the possible markets, the government policies and the information connected to the competitors presented in the market. After that, the company ought to choose one prospective section for its preliminary offering. It must collect research study that how it could separate its digital publishing from the existing rivals' items. After all the steps above the business should go for the preliminary offering. The company needs to go for the other markets if the initial offering proves a success. In this method the company would have the ability to execute its digital publishing program.
The growth of the publishing market is declining given that 2008, revealing a hazard to the business's long term existence, but the situation can be managed by considering an advancement plan in the future. The company might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.