Exima Agro Industrial Holdings Case Study Solution and Analysis
Introduction
Exima Agro Industrial Holdings Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP offers a number of services including; collecting info, processing details and interaction services. Significant organisation segments of the company include; books, regulars, consultancy and distribution. The company has a vast product portfolio and its major products include books, regulars, online media, exhibits, research study reports and so on. Exima Agro Industrial Holdings Case Study Solution has ended up being a specialized details provider and a big comprehensive Science and Innovation 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 efficiently, being an effective publishing home, however, the changing macro market patterns and forces bring specific difficulties to the publishing market in general and Exima Agro Industrial Holdings Case Study Analysis in particular. These factors consist of;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Exima Agro Industrial Holdings Case Study Analysis has certain strengths that can be used to minimize the hazards, get rid of the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Exima Agro Industrial Holdings Case Study Solution in the publishing market i.e. 60 years permits the business to offer high quality products at a lower cost using its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and supply high value to its clients.
• Strong financial position enables the company to think about several advancement opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weaknesses which could increase restraints for the business in implementing its development program. The weaknesses of Exima Agro Industrial Holdings Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain expansion plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is decreasing considering that 2008, affecting Exima Agro Industrial Holdings Case Study Solution also, however the growth could be restored by availing certain opportunities presented in the market. The marketplace chances for CMP consist of;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer 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 using its large financial resources.
Hazards
The changing macro trends in the market and increasing competitors in the publishing market has actually postured specific risks to Exima Agro Industrial Holdings Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of Exima Agro Industrial Holdings Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing particular techniques like aggressive promo, quality items, and so on
• Entryway of brand-new publishing firms in the market together with existence of high competition increases the danger of losing the customer base.
Monetary Analysis.
The company has a rather competitive monetary performance. Due to lack of data, the financial ratios of CMP might not be determined. The general financial performance of the company might be evaluated by using the charts provided in the case Appendices. It might be examined from the Appendix III that the yearly total earnings of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of Exima Agro Industrial Holdings Case Study Analysis is growing and the company is rather effective in drawing in a a great deal of consumers at a possible cost.
In addition to it, the second graph which reveals the yearly growth in the Exima Agro Industrial Holdings Case Study Solution total assets, reveals that the company is quite efficient in adding worth to its assets through its profits. The growth in assets reveals that the overall value of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given information could be the analysis concerning the circulation of overall profits of the company. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sectors with a possible development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the different external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the general political forces affecting Exima Agro Industrial Holdings Case Study Analysis service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the Exima Agro Industrial Holdings Case Study Analysis in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the need for the publishing market. Along with it, the economic policies connected to the import of books affect the total organisation at CPM. China's financial conditions are quite favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading helpful products etc. China has the highest population worldwide with a high population development, showing the increasing number of consumers of the Exima Agro Industrial Holdings Case Study Analysis. Nevertheless, the customer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Enhancement of science and innovation together with the increase of digital publishing might lower the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Exima Agro Industrial Holdings Case Study Help includes 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 utilized while publishing must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to examine the beauty of the publishing market 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 potential development in the industry tends to bring in new entrants to the publishing market. The presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement products for the released files is the files presented in the digital libraries on certain sites. The altering consumer preferences towards digital knowing increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Exima Agro Industrial Holdings Case Study Solution include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Exima Agro Industrial Holdings Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same period, CIP releases comparable type of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and third in numerous market sectors, with a significant focus on instructional publications. CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Exima Agro Industrial Holdings Case Study Help quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is also among the prominent gamers in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the business require an instant option to avoid the declining industry development. The company might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company ought to first collects the information related to the consumer demand, the potential markets, the government guidelines and the information related to the rivals provided in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing since 2008, showing a threat to the business's long term presence, but the situation can be controlled by thinking about a development strategy in the future. The company might consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
