Financial Market Case Study Solution and Analysis
Intro
Financial Market Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized information company and a large thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, Financial Market Case Study Help has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring particular challenges to the publishing market in general and CMP in specific. These aspects consist of;
• Entrance of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The transformation 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 valuable experience, technical resources and the capabilities of the company could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Financial Market Case Study Analysis has particular strengths that can be used to lower the dangers, overcome the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Financial Market Case Study Analysis in the publishing market i.e. 60 years allows the company to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and offer high value to its customers.
• Strong financial position allows the business to consider several development chances without any fear of raising fund externally.
Weak points
In addition to the strengths, the business has certain weaknesses which could increase restraints for the company in implementing its advancement program. The weaknesses of Financial Market Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain growth plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing market is declining since 2008, affecting Financial Market Case Study Help as well, but the growth might be restored by availing specific chances provided in the market. The market chances for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its huge financial resources.
Risks
The altering macro trends in the market and increasing competitors in the publishing market has postured specific risks to Financial Market Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Financial Market Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using specific methods like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the industry together with existence of high competitors increases the risk of losing the customer base.
Monetary Analysis.
The company has a rather competitive financial performance. Due to lack of data, the monetary ratios of CMP could not be calculated. The overall monetary efficiency of the business might be analyzed by using the graphs provided in the case Appendices. It might be analyzed from the Appendix III that the annual overall revenues of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of Financial Market Case Study Analysis is growing and the business is quite effective in attracting a large number of clients at a prospective price.
Along with it, the second chart which shows the yearly growth in the Financial Market Case Study Analysis overall properties, reveals that the company is rather efficient in including worth to its properties through its earnings. The growth in possessions shows that the overall value of the firm is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the business utilizing the provided data might be the analysis regarding the circulation of total earnings of the company. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sections with a prospective growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the different external forces affecting the performance of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. Therefore, it could be said that the overall political forces affecting Financial Market Case Study Solution organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the Financial Market Case Study Help in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the demand for the publishing market. Along with it, the economic policies related to the import of books impact the overall business at CPM. However, China's financial conditions are quite favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Enhancement of science and innovation in addition to the increase of digital publishing might reduce the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Financial Market Case Study Solution consists of the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to analyze the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to draw in new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Danger of Alternative.
Risk of Alternative is high for the Chinese Publishing Industry. The replacement products for the released documents is the files provided in the virtual libraries on particular sites. The altering customer choices towards digital learning increase the danger of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Financial Market 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 total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Financial Market Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same period, CIP releases comparable type of books. For a big period, CIP held the largest market share, and still ranks 2nd and 3rd in numerous market segments, with a significant focus on academic publications. CIP serves as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Financial Market Case Study Solution easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is also one of the prominent players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
Cons
• 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 demand of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the business need an instant service to avoid the decreasing market development. The company could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company needs to initially collects the data associated with the customer need, the possible markets, the federal government guidelines and the information associated with the competitors presented in the market. After that, the company needs to decide one possible sector for its preliminary offering. It ought to gather research that how it could distinguish its digital publishing from the existing competitors' products. After all the steps above the business should choose the preliminary offering. The company ought to go for the other markets if the preliminary offering proves a success. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing because 2008, showing a risk to the business's long term presence, however the circumstance can be controlled by considering a development strategy in the future. The company could think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entryway in the new markets.
