Financial Engineering 2 Case Study Solution and Analysis
Financial Engineering 2 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized details service provider and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Financial Engineering 2 Case Study Analysis has spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring specific challenges to the publishing market in basic and CMP in particular. These elements consist of;
• Entrance of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised several concerns 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 business could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Financial Engineering 2 Case Study Analysis has certain strengths that can be used to decrease the threats, overcome the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Financial Engineering 2 Case Study Analysis in the publishing industry i.e. 60 years permits the business to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its risk and supply high value to its customers.
• Strong monetary position allows the company to think about numerous development chances without any fear of raising fund externally.
In addition to the strengths, the company has certain weaknesses which could increase constraints for the business in executing its development program. The weak points of Financial Engineering 2 Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose particular expansion plans to avoid its reliance over the Chinese markets to attain long term growth.
Although, the growth of the publishing industry is decreasing considering that 2008, affecting Financial Engineering 2 Case Study Solution too, however the development could be restored by availing specific opportunities provided in the market. The marketplace chances for CMP consist of;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge funds.
The altering macro trends in the market and increasing competitors in the publishing market has posed certain risks to Financial Engineering 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Financial Engineering 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing certain strategies like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing firms in the market along with existence of high competition increases the risk of losing the customer base.
Due to absence of information, the monetary ratios of CMP could not be calculated. It could be evaluated from the Appendix III that the annual total incomes of Financial Engineering 2 Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the business is quite effective in drawing in a large number of customers at a possible price.
Along with it, the 2nd graph which reveals the annual growth in the Financial Engineering 2 Case Study Help overall properties, shows that the company is rather efficient in adding value to its assets through its incomes. The development in properties reveals that the total value of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the business using the offered information could be the analysis concerning the distribution of total profits of the business. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company segments with a possible growth to attain its future development goal.
PESTEL analysis could be carried out to discover the numerous external forces affecting the performance of the business and the recent patterns in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. It might be stated that the general political forces impacting CMP service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards checking out informative products and so on. China has the greatest population worldwide with a high population development, showing the increasing number of customers of the Financial Engineering 2 Case Study Help. The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the altering customer choices.
Technological forces impacting the CMP include the technological improvement in the reading methods and so on. Improvement of science and innovation in addition to the rise of digital publishing might decrease the demand for the CMP products, if particular actions would not be taken soon.
Environmental forces impacting Financial Engineering 2 Case Study Help consists of the concerns of ecological communities 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 must not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be utilized to evaluate the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to bring in new entrants to the publishing industry. However, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The replacement products for the published documents is the documents presented in the digital libraries on specific sites. The changing customer choices towards digital knowing increase the risk of replacement for the industry.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Financial Engineering 2 Case Study Analysis include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive prices.
CMP operates in an extremely competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Financial Engineering 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Financial Engineering 2 Case Study Solution and CIP. It is also one of the prominent players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose need of its products in the market.
As the choices are shifting towards digital publishing and the company need an immediate solution to prevent the declining industry development. The company could also think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business needs to first gathers the data related to the consumer need, the possible markets, the government guidelines and the information related to the rivals provided in the market. If the initial offering shows a success, the business must go for the other markets. In this way the business would be able to implement its digital publishing program.
The growth of the publishing industry is declining given that 2008, revealing a hazard to the business's long term presence, however the circumstance can be managed by considering a development plan in the future. The business might consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.