Financial Health Assignment Case Study Solution and Analysis
Financial Health Assignment Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP offers a variety of services consisting of; gathering info, processing info and interaction services. Significant service sectors of the company include; books, periodicals, consultancy and circulation. The company has a huge product portfolio and its major items include books, periodicals, online media, exhibits, research study reports etc. Financial Health Assignment Case Study Help has ended up being a specialized details provider and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring certain challenges to the publishing market in general and Financial Health Assignment Case Study Analysis in particular. These aspects consist of;
• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The improvement 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 situation? Do the long important experience, technical resources and the abilities of the company could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Financial Health Assignment Case Study Analysis has particular strengths that can be utilized to minimize the risks, conquer the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Financial Health Assignment Case Study Analysis in the publishing market i.e. 60 years permits the company to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and supply high value to its clients.
• Strong financial position permits the business to think about numerous development opportunities without any fear of raising fund externally.
Along with the strengths, the business has specific weak points which might increase constraints for the business in executing its development program. The weak points of Financial Health Assignment Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose specific growth plans to avoid its dependence over the Chinese markets to accomplish long term growth.
The growth of the publishing market is declining given that 2008, affecting Financial Health Assignment Case Study Solution as well, but the development could be revived by availing specific opportunities presented in the market. The market opportunities for CMP consist of;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its vast financial resources.
The changing macro patterns in the market and increasing competition in the publishing market has actually positioned specific hazards to Financial Health Assignment Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Financial Health Assignment Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific techniques like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the market in addition to presence of high competitors increases the danger of losing the customer base.
The business has a rather competitive financial performance. Due to lack of information, the financial ratios of CMP might not be calculated. The total financial performance of the business could be evaluated by using the charts offered in the case Appendices. It might be analyzed from the Appendix III that the yearly total profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of Financial Health Assignment Case Study Help is growing and the company is quite efficient in drawing in a large number of customers at a potential price.
Along with it, the second chart which shows the annual development in the Financial Health Assignment Case Study Help total possessions, reveals that the business is rather effective in including worth to its assets through its profits. The development in properties shows that the overall worth of the company is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the company using the provided information could be the analysis regarding the circulation of total incomes of the business. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sections with a possible growth to accomplish its future development objective.
PESTEL analysis might be conducted to learn the numerous external forces impacting the performance of the company and the current trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It might be stated that the total political forces affecting CMP business 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 general and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing consumer choices.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Enhancement of science and technology in addition to the increase of digital publishing could reduce the need for the CMP items, if particular actions would not be taken soon.
Ecological forces affecting Financial Health Assignment Case Study Analysis includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to evaluate the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to attract new entrants to the publishing market. However, the existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Threat of Alternative.
Danger of Substitution is high for the Chinese Publishing Market. The replacement items for the published documents is the documents provided in the digital libraries on certain websites. The changing customer choices towards digital learning increase the danger of alternative for the industry.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Financial Health Assignment Case Study Solution include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
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 buyers needs high quality files at competitive prices.
CMP operates in an extremely competitive industry with the presence 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 Health Assignment Case Study Analysis include;.
• Chemical Market 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 easily in the current market situation.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Financial Health Assignment Case Study Solution and CIP. It is also one of the popular players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the company to lose demand of its products in the market.
With the deep analysis of the external and internal environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future development. As the preferences are shifting towards digital publishing and the business require an immediate option to avoid the declining market growth. For that reason, introduction of digital publishing could prove to be an immediate service with low quantity of danger for the company. The business might likewise think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company must first collects the data related to the customer demand, the potential markets, the federal government policies and the data related to the rivals provided in the market. If the initial offering shows a success, the business needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Although, the development of the publishing industry is declining since 2008, showing a threat to the business's long term presence, but the circumstance can be controlled by considering a development plan in the future. The business might think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.