Financial Market Case Study Solution and Analysis
Financial Market Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP provides a number of services including; gathering info, processing info and interaction services. Major company sections of the company consist of; books, periodicals, consultancy and circulation. The company has a large product portfolio and its major items include books, periodicals, online media, exhibitions, research reports and so on. Financial Market Case Study Help has ended up being a specialized info service provider and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Financial Market Case Study Solution has actually spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market patterns and forces bring specific challenges to the publishing market in general and CMP in specific. These elements include;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
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 scenario? Do the long important experience, technical resources and the abilities of the business could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Financial Market Case Study Analysis has specific strengths that can be used to minimize the hazards, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Financial Market Case Study Analysis in the publishing industry i.e. 60 years permits the company to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and supply high value to its clients.
• Strong monetary position permits the company to think about numerous advancement opportunities without any worry of raising fund externally.
Along with the strengths, the business has certain weaknesses which might increase restraints for the company in implementing its development program. The weaknesses of Financial Market Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular growth plans to prevent its reliance over the Chinese markets to accomplish long term development.
Although, the growth of the publishing market is decreasing because 2008, impacting Financial Market Case Study Analysis as well, but the development might be restored by availing specific chances presented in the market. The market chances for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its vast financial resources.
The changing macro patterns in the market and increasing competitors in the publishing market has postured certain hazards to Financial Market Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Financial Market Case Study Solution due to the customer shift towards digital libraries.
• The existence 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 gain a strong consumer base by using specific techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the industry along with presence of high competitors increases the hazard of losing the client base.
Due to absence of data, the monetary ratios of CMP might not be determined. It could be evaluated from the Appendix III that the annual overall earnings of Financial Market Case Study Help throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of CMP is growing and the business is quite effective in bring in a large number of consumers at a possible price.
Along with it, the 2nd graph which shows the annual development in the Financial Market Case Study Help total assets, shows that the business is quite efficient in including worth to its possessions through its revenues. The development in assets shows that the overall value of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered data could be the analysis relating to the circulation of total earnings of the company. Major 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 organisation sectors with a prospective growth to accomplish its future development goal.
PESTEL analysis might be performed to discover the numerous external forces impacting the performance of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a substantial impact on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. It might be stated that the overall political forces impacting CMP organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer preferences.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and innovation together with the rise of digital publishing could lower the need for the CMP products, if specific actions would not be taken quickly.
Environmental forces impacting Financial Market Case Study Solution consists of 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 disposable and the ink used while publishing needs to not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be utilized to evaluate the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in brand-new entrants to the publishing industry. The presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Risk of Replacement is high for the Chinese Publishing Industry. The alternative products for the released files is the documents provided in the virtual libraries on specific sites. The changing consumer preferences towards digital learning increase the danger of substitution for the industry.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Financial Market Case Study Analysis include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing market 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 documents at competitive prices.
CMP operates in a highly competitive industry with the presence of a great deal 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 Market Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the same period as Financial Market Case Study Analysis and CIP. It is also one of the popular gamers in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose need of its products in the market.
As the preferences are moving towards digital publishing and the company need an instant option to avoid the declining industry development. The business might also 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 needs to initially collects the data related to the consumer demand, the potential markets, the government policies and the information related to the competitors provided in the market. If the preliminary offering shows a success, the company should go for the other markets. In this way the business would be able to implement its digital publishing program.
The development of the publishing industry is decreasing since 2008, revealing a risk to the business's long term existence, however the circumstance can be controlled by thinking about a development plan in the future. The company could consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entryway in the new markets.