Finance Project 3 Case Study Solution and Analysis
Introduction
Finance Project 3 Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP offers a number of services including; collecting info, processing information and interaction services. Major business sectors of the company consist of; books, regulars, consultancy and circulation. The company has a large item portfolio and its significant products include books, regulars, online media, exhibitions, research study reports and so on. Finance Project 3 Case Study Solution has become a specialized information supplier and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Issues
CMP has actually spent its 60 years journey smoothly, being a successful publishing home, however, the altering macro market trends and forces bring certain obstacles to the publishing industry in general and Finance Project 3 Case Study Analysis in specific. These factors include;
• Entryway of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised numerous concerns 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 abilities 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?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Finance Project 3 Case Study Help has certain strengths that can be utilized to decrease the hazards, overcome the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Finance Project 3 Case Study Help in the publishing industry i.e. 60 years enables the business to provide high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities created by its successful journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and provide high worth to its clients.
• Strong monetary position allows the company to consider a number of development opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weak points which might increase constraints for the business in executing its development program. The weaknesses of Finance Project 3 Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose certain growth strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is decreasing since 2008, impacting Finance Project 3 Case Study Analysis too, however the growth could be revived by availing certain chances provided in the market. The market opportunities for CMP include;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its large funds.
Risks
The changing macro trends in the market and increasing competition in the publishing market has presented certain threats to Finance Project 3 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Finance Project 3 Case Study Solution due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using particular techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing companies in the market along with existence of high competitors increases the risk of losing the customer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the annual overall revenues of Finance Project 3 Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of CMP is growing and the company is rather effective in bring in a big number of customers at a prospective cost.
In addition to it, the 2nd chart which shows the annual growth in the Finance Project 3 Case Study Analysis total possessions, reveals that the company is quite effective in adding value to its assets through its earnings. The growth in assets reveals that the total worth of the company is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the business using the given data could be the analysis relating to the distribution of overall earnings of the company. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business segments with a potential development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the different external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact 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 Promotion Department of the Communist Celebration of China. It might be stated that the total political forces impacting CMP business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods and so on. Improvement of science and innovation in addition to the increase of digital publishing might decrease the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Finance Project 3 Case Study Solution 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 non reusable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be utilized to examine the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract new entrants to the publishing market. However, the presence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Risk of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The replacement products for the released documents is the documents provided in the digital libraries on certain websites. The changing customer preferences towards digital knowing increase the threat of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Finance Project 3 Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 marketplace saturation, the purchasers requires high quality files at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Finance Project 3 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same duration, CIP releases similar type of books. For a big period, CIP held the biggest market share, and still ranks second and 3rd in various market sections, with a major focus on educational publications. CIP functions 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 could wean the market share of Finance Project 3 Case Study Help easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is likewise among the prominent gamers in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the business require an immediate solution to avoid the declining industry growth. The business might likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company should initially collects the information related to the consumer demand, the possible markets, the government regulations and the data related to the rivals provided in the market. If the preliminary offering proves a success, the business needs to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining given that 2008, showing a threat to the company's long term existence, however the circumstance can be managed by considering a development strategy in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entryway in the new markets.
