Financial Engineering Case Study Solution and Analysis
Financial Engineering Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting info, processing info and interaction services. Major organisation segments of the company include; books, regulars, consultancy and distribution. The business has a large item portfolio and its significant products consist of books, periodicals, online media, exhibitions, research reports etc. Financial Engineering Case Study Solution has actually ended up being a specialized information service provider and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Although, Financial Engineering Case Study Analysis has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring particular difficulties to the publishing market in basic and CMP in particular. These elements include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The improvement of the macro markets have raised a number of 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 capabilities of the company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Financial Engineering Case Study Solution has certain strengths that can be made use of to minimize the dangers, get rid of the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Financial Engineering Case Study Solution in the publishing industry i.e. 60 years enables the business to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and supply high worth to its customers.
• Strong financial position permits the business to consider a number of development opportunities with no fear of raising fund externally.
Together with the strengths, the company has particular weak points which might increase restrictions for the business in implementing its advancement program. The weak points of Financial Engineering Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose certain expansion strategies to avoid its reliance over the Chinese markets to achieve long term development.
Although, the development of the publishing industry is decreasing because 2008, affecting Financial Engineering Case Study Analysis too, but the development might be restored by availing certain chances presented in the market. The marketplace chances for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast funds.
The changing macro patterns in the market and increasing competitors in the publishing market has positioned particular threats to Financial Engineering Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Financial Engineering Case Study Help due to the customer shift towards digital libraries.
• The existence 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 acquire a strong consumer base by using certain strategies like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the industry along with existence of high competitors increases the danger of losing the consumer base.
The business has a quite competitive monetary performance. Due to absence of information, the monetary ratios of CMP could not be determined. The total monetary efficiency of the business might be examined by utilizing the graphs offered in the case Appendices. It might be evaluated from the Appendix III that the yearly total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of Financial Engineering Case Study Solution is growing and the company is rather efficient in attracting a large number of consumers at a possible price.
In addition to it, the 2nd graph which reveals the annual growth in the Financial Engineering Case Study Solution total possessions, shows that the business is rather efficient in including worth to its assets through its revenues. The development in properties reveals that the total value of the company is also increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the company using the given information could be the analysis concerning the distribution of total profits of the company. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other company segments with a potential development to achieve its future development goal.
PESTEL analysis might be carried out to learn the numerous external forces impacting the efficiency of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a substantial impact on the state of mind of the people 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 Party of China. It could be stated that the total political forces affecting CMP company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. 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 reading useful materials etc. China has the greatest population on the planet with a high population growth, revealing the increasing number of consumers of the Financial Engineering Case Study Help. Nevertheless, the customer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the changing consumer choices.
Technological forces impacting the CMP include the technological improvement in the reading techniques etc. Improvement of science and technology in addition to the rise of digital publishing could lower the demand for the CMP products, if certain actions would not be taken quickly.
Environmental forces impacting Financial Engineering Case Study Solution consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be utilized to evaluate the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Substitution.
Danger of Alternative is high for the Chinese Publishing Market. The replacement items for the published documents is the files provided in the virtual libraries on certain websites. The altering consumer choices towards digital knowing increase the risk of replacement for the industry.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Financial Engineering Case Study Help consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
CMP runs in a highly competitive industry with the presence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Financial Engineering Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
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 could wean the market share of CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Financial Engineering Case Study Solution and CIP. It is likewise one of the popular gamers in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the brand-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 market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the business require an instant option to prevent the decreasing market growth. For that reason, introduction of digital publishing could show to be an immediate option with low amount of danger for the company. Nevertheless, the company might likewise consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business needs to initially collects the data related to the customer demand, the prospective markets, the government guidelines and the data connected to the rivals provided in the market. After that, the company ought to choose one potential segment for its preliminary offering. It ought to collect research study that how it might separate its digital publishing from the existing competitors' products. After all the actions above the business must opt for the initial offering. If the preliminary offering proves a success, the company must opt for the other markets. In this method the business would be able to implement its digital publishing program.
The growth of the publishing market is decreasing considering that 2008, revealing a danger to the company's long term presence, however the scenario can be managed by thinking about an advancement strategy in the future. The company could consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.