Financial Crisis 3 Case Study Solution and Analysis
Introduction
Financial Crisis 3 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP provides a number of services consisting of; collecting info, processing information and interaction services. Major business segments of the company include; books, periodicals, consultancy and circulation. The company has a huge item portfolio and its significant products consist of books, periodicals, online media, exhibits, research study reports and so on. Financial Crisis 3 Case Study Help has actually become a specialized details service provider and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring specific difficulties to the publishing market in basic and Financial Crisis 3 Case Study Solution in particular. These elements include;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
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 circumstance? Do the long important experience, technical resources and the capabilities of the company could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Financial Crisis 3 Case Study Help has certain strengths that can be utilized to minimize the risks, conquer the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Financial Crisis 3 Case Study Help in the publishing market i.e. 60 years permits the business to offer high quality items at a lower expense using its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and provide high worth to its customers.
• Strong financial position enables the business to consider numerous advancement opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weak points which could increase restrictions for the company in implementing its advancement program. The weaknesses of Financial Crisis 3 Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the company 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 ought to propose certain expansion strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is declining given that 2008, impacting Financial Crisis 3 Case Study Help too, however the development might be restored by availing certain opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast funds.
Dangers
The altering macro patterns in the market and increasing competition in the publishing industry has actually postured particular threats to Financial Crisis 3 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Financial Crisis 3 Case Study Help due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific strategies like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the industry along with existence of high competition increases the hazard of losing the client base.
Financial Analysis.
The business has a quite competitive financial performance. Due to absence of information, the financial ratios of CMP might not be calculated. The total financial efficiency of the company could be analyzed by using the charts provided in the case Appendices. It could be evaluated from the Appendix III that the yearly overall earnings of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of Financial Crisis 3 Case Study Help is growing and the business is quite efficient in drawing in a large number of customers at a prospective rate.
Along with it, the second graph which shows the annual growth in the Financial Crisis 3 Case Study Analysis overall assets, reveals that the company is rather effective in adding value to its assets through its incomes. The development in properties reveals that the overall value of the company is also increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business using the offered data might be the analysis relating to the distribution of overall earnings of the business. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service segments with a possible development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces impacting the efficiency of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. Therefore, it could be said that the overall political forces affecting Financial Crisis 3 Case Study Solution service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards checking out informative materials and so on. China has the highest population in the world with a high population development, showing the increasing variety of customers of the Financial Crisis 3 Case Study Analysis. Nevertheless, the consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Improvement of science and technology together with the rise of digital publishing might minimize the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Financial Crisis 3 Case Study Analysis includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be used to examine the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in brand-new entrants to the publishing industry. However, the existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Danger of Replacement.
Threat of Alternative is high for the Chinese Publishing Market. The replacement items for the released files is the files provided in the virtual libraries on certain sites. The altering customer choices towards digital learning increase the threat of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Financial Crisis 3 Case Study Analysis consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer 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 documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Financial Crisis 3 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as Financial Crisis 3 Case Study Help and CIP. It is likewise one of the popular players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the business need an instant option to prevent the decreasing industry development. Intro of digital publishing could show to be an instant option with low amount of risk for the business. The company might also think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business must initially gathers the data related to the consumer demand, the potential markets, the government policies and the information related to the rivals provided in the market. If the preliminary offering proves a success, the business must go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining considering that 2008, showing a threat to the business's long term existence, but the circumstance can be managed by considering an advancement plan in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entrance in the brand-new markets.
