Farmland Investing Technical Note Case Study Solution and Analysis
Farmland Investing Technical Note Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details provider and a big extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring particular challenges to the publishing industry in basic and Farmland Investing Technical Note Case Study Solution in specific. These factors consist of;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The improvement of the macro markets have raised a number of concerns 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 used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Farmland Investing Technical Note Case Study Help has particular strengths that can be utilized to lower the risks, conquer the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Farmland Investing Technical Note Case Study Help in the publishing market i.e. 60 years enables the business to provide high quality products at a lower cost using its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its threat and supply high worth to its customers.
• Strong monetary position allows the business to think about numerous development chances without any fear of raising fund externally.
In addition to the strengths, the company has specific weak points which might increase restrictions for the business in implementing its advancement program. The weak points of Farmland Investing Technical Note Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose certain expansion plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Although, the development of the publishing industry is decreasing considering that 2008, impacting Farmland Investing Technical Note Case Study Solution also, however the growth might be restored by availing particular opportunities presented in the market. The marketplace opportunities for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its huge financial resources.
The changing macro trends in the market and increasing competitors in the publishing market has actually posed certain hazards to Farmland Investing Technical Note Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Farmland Investing Technical Note Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using certain techniques like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing firms in the market in addition to existence of high competition increases the threat of losing the client base.
Due to lack of information, the financial ratios of CMP might not be computed. It might be evaluated from the Appendix III that the annual total profits of Farmland Investing Technical Note Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the business is quite effective in bring in a big number of consumers at a possible cost.
In addition to it, the second chart which reveals the yearly growth in the Farmland Investing Technical Note Case Study Solution overall possessions, reveals that the business is rather effective in adding worth to its possessions through its profits. The development in assets reveals that the overall worth of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis relating to the circulation of overall incomes of the business. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sectors with a possible development to achieve its future development objective.
PESTEL analysis could be conducted to learn the numerous external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a substantial influence on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. It could be stated that the total political forces impacting CMP business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the Farmland Investing Technical Note Case Study Analysis in specific includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces combine impact the need for the publishing market. Along with it, the financial policies related to the import of books affect the general service at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences 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 consumers of the Farmland Investing Technical Note Case Study Analysis. However, the consumer preferences are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering consumer choices.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Improvement of science and technology along with the increase of digital publishing might lower the need for the CMP products, if certain actions would not be taken quickly.
Ecological forces impacting Farmland Investing Technical Note Case Study Help consists of the concerns of environmental neighborhoods over the use 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 must not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be utilized to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to attract new entrants to the publishing market. However, the existence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Threat of Replacement is high for the Chinese Publishing Industry. The alternative products for the published files is the files presented in the virtual libraries on particular sites. The altering consumer preferences towards digital learning increase the risk of replacement for the market.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Farmland Investing Technical Note Case Study Solution include the providers 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.
Bargaining power of buyer 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 documents at competitive rates.
CMP runs in an extremely competitive industry with the existence of large number of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Farmland Investing Technical Note Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it could 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 current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is likewise among the popular gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
• Competitors in the market by CIP, who has prior concentrate 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 along with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the business need an immediate solution to prevent the declining industry growth. Introduction of digital publishing might prove to be an instant option with low quantity of danger for the business. Nevertheless, the company might also consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company must initially gathers the information related to the consumer demand, the possible markets, the federal government policies and the data related to the competitors provided in the market. If the preliminary offering proves a success, the company must go for the other markets. In this way the business would be able to implement its digital publishing program.
Although, the development of the publishing market is decreasing because 2008, revealing a hazard to the business's long term presence, however the scenario can be controlled by thinking about a development strategy in the future. The business could consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entryway in the new markets.