Fighting A Dangerous Financial Fire The Federal Response To The Crisis Of 2007 2009 Case Study Solution and Analysis
Fighting A Dangerous Financial Fire The Federal Response To The Crisis Of 2007 2009 Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP offers a number of services consisting of; collecting info, processing info and communication services. Significant business sections of the business consist of; books, periodicals, consultancy and distribution. The company has a large product portfolio and its major products include books, regulars, online media, exhibits, research study reports and so on. Fighting A Dangerous Financial Fire The Federal Response To The Crisis Of 2007 2009 Case Study Analysis has actually ended up being a specialized information supplier and a large comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Fighting A Dangerous Financial Fire The Federal Response To The Crisis Of 2007 2009 Case Study Solution has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing industry in general and CMP in particular. These aspects include;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The transformation 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 situation? Do the long important experience, technical resources and the capabilities of the company could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Fighting A Dangerous Financial Fire The Federal Response To The Crisis Of 2007 2009 Case Study Solution has specific strengths that can be used to lower the dangers, conquer the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Fighting A Dangerous Financial Fire The Federal Response To The Crisis Of 2007 2009 Case Study Analysis in the publishing market i.e. 60 years enables the business to offer high quality items at a lower expense using its prior experiences.
• The technical resources and abilities created by its successful journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and supply high value to its consumers.
• Strong financial position allows the business to consider numerous advancement opportunities with no worry of raising fund externally.
Together with the strengths, the company has specific weaknesses which could increase restraints for the company in executing its advancement program. The weaknesses of Fighting A Dangerous Financial Fire The Federal Response To The Crisis Of 2007 2009 Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific growth strategies to avoid its dependence over the Chinese markets to attain long term development.
The growth of the publishing market is decreasing since 2008, affecting Fighting A Dangerous Financial Fire The Federal Response To The Crisis Of 2007 2009 Case Study Help as well, but the development could be revived by availing particular opportunities provided in the market. The marketplace chances for CMP include;
• The business could also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge financial resources.
The changing macro patterns in the market and increasing competition in the publishing industry has actually presented certain hazards to Fighting A Dangerous Financial Fire The Federal Response To The Crisis Of 2007 2009 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Fighting A Dangerous Financial Fire The Federal Response To The Crisis Of 2007 2009 Case Study Analysis due to the customer 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 rivals can acquire a strong consumer base by using certain strategies like aggressive promo, quality products, and so on
• Entrance of new publishing firms in the industry in addition to presence of high competition increases the hazard of losing the customer base.
The business has a rather competitive monetary efficiency. Due to lack of information, the financial ratios of CMP could not be calculated. However, the total financial efficiency of the business could be examined by using the graphs given up the case Appendices. It could be evaluated from the Appendix III that the annual total incomes of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of Fighting A Dangerous Financial Fire The Federal Response To The Crisis Of 2007 2009 Case Study Help is growing and the business is rather efficient in drawing in a large number of consumers at a prospective rate.
In addition to it, the 2nd chart which reveals the annual development in the Fighting A Dangerous Financial Fire The Federal Response To The Crisis Of 2007 2009 Case Study Analysis total assets, shows that the business is rather effective in adding worth to its possessions through its earnings. The growth in properties shows that the overall worth of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered data might be the analysis relating to the circulation of overall earnings of the company. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company sectors with a possible development to attain its future development goal.
PESTEL analysis could be performed to find out the different external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is provided 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 highly supervised and assisted by the Promotion Department of the Communist Party of China. It might be said that the total political forces affecting CMP service 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 Fighting A Dangerous Financial Fire The Federal Response To The Crisis Of 2007 2009 Case Study Analysis in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. 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 general business at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering customer choices.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and technology together with the rise of digital publishing could lower the need for the CMP items, if particular actions would not be taken quickly.
Ecological forces affecting Fighting A Dangerous Financial Fire The Federal Response To The Crisis Of 2007 2009 Case Study Help consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing should not be harmful for the environment.
Legal policies for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be utilized to examine the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to bring in new entrants to the publishing industry. The presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Substitution.
Threat of Replacement is high for the Chinese Publishing Market. The alternative items for the published files is the files presented in the digital libraries on certain sites. The altering consumer preferences towards digital knowing increase the threat of substitution for the industry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Fighting A Dangerous Financial Fire The Federal Response To The Crisis Of 2007 2009 Case Study Solution include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
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 purchasers needs high quality files at competitive costs.
CMP runs in an extremely competitive market with the existence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Fighting A Dangerous Financial Fire The Federal Response To The Crisis Of 2007 2009 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the exact same period, CIP publishes similar kind of books. For a big time period, CIP held the largest market share, and still ranks third and 2nd in various market segments, with a significant focus on academic publications. 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 marketplace share of Fighting A Dangerous Financial Fire The Federal Response To The Crisis Of 2007 2009 Case Study Analysis quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor 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 company scale. It is likewise among the popular players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose need of its products in the market.
With the deep analysis of the external and internal environment of the business along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are moving towards digital publishing and the business require an immediate option to prevent the declining market development. Intro of digital publishing could show to be an instant option with low quantity of threat for the business. Nevertheless, the business could likewise think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company ought to first gathers the information related to the customer need, the potential markets, the government guidelines and the data related to the rivals provided in the market. If the preliminary offering proves a success, the company should go for the other markets. In this way the business would be able to execute its digital publishing program.
Although, the development of the publishing industry is decreasing given that 2008, revealing a threat to the business's long term presence, however the circumstance can be managed by thinking about a development plan in the future. The business might consider presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.