Finance Exam Case Study Solution and Analysis
Finance Exam Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized information company and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey efficiently, being an effective publishing house, however, the changing macro market patterns and forces bring certain difficulties to the publishing industry in general and Finance Exam Case Study Solution in specific. These factors consist of;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement 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 scenario? 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?
Finance Exam Case Study Analysis has certain strengths that can be utilized to decrease the risks, conquer the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Finance Exam Case Study Help in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and provide high value to its clients.
• Strong financial position enables the business to consider a number of advancement opportunities with no worry of raising fund externally.
Along with the strengths, the business has specific weaknesses which could increase restrictions for the business in executing its advancement program. The weaknesses of Finance Exam Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular growth strategies to prevent its dependence over the Chinese markets to achieve long term development.
Although, the growth of the publishing market is decreasing because 2008, impacting Finance Exam Case Study Solution also, but the growth might be restored by availing certain opportunities provided in the market. The marketplace chances for CMP consist of;
• The business could also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast funds.
The changing macro patterns in the market and increasing competitors in the publishing market has actually posed particular hazards to Finance Exam Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Finance Exam Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using particular techniques like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the market along with presence of high competitors increases the threat of losing the consumer base.
Due to absence of information, the monetary ratios of CMP might not be determined. It might be evaluated from the Appendix III that the yearly total profits of Finance Exam Case Study Solution during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of CMP is growing and the company is rather efficient in bring in a large number of customers at a possible price.
Along with it, the 2nd graph which reveals the annual growth in the Finance Exam Case Study Analysis overall properties, shows that the company is rather effective in adding value to its possessions through its revenues. The growth in assets reveals that the overall value of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the company using the provided information could be the analysis relating to the distribution of overall revenues of the company. Major part of the profits 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 business sectors with a possible development to achieve its future advancement goal.
PESTEL analysis could be conducted to find out the various external forces impacting the performance of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant influence on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. It might be stated that the total political forces impacting CMP service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer choices.
Technological forces affecting the CMP consist of the technological development in the reading methods etc. Improvement of science and technology together with the rise of digital publishing might decrease the demand for the CMP items, if specific actions would not be taken quickly.
Ecological forces affecting Finance Exam Case Study Help consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to evaluate the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract brand-new entrants to the publishing industry. The existence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Threat of Replacement.
Risk of Alternative is high for the Chinese Publishing Industry. The replacement products for the published documents is the files presented in the digital libraries on particular sites. The altering customer preferences towards digital learning increase the danger of alternative for the industry.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Finance Exam Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
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 requires high quality files at competitive prices.
CMP runs in a highly competitive market with the existence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Finance Exam Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the same period as Finance Exam Case Study Help and CIP. It is likewise one of the popular gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose need of its products in the market.
As the preferences are shifting towards digital publishing and the business require an immediate solution to avoid the decreasing industry growth. The business could also consider 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 initially collects the information related to the customer need, the prospective markets, the government policies and the information related to the rivals provided in the market. After that, the business ought to decide one possible section for its preliminary offering. It should collect research that how it could separate its digital publishing from the existing rivals' products. The actions above the company ought to go for the preliminary offering. The company should go for the other markets if the preliminary offering proves a success. In this method the company would be able to implement its digital publishing program.
Although, the growth of the publishing market is declining because 2008, showing a hazard to the company's long term existence, but the scenario can be controlled by considering an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.