Financing Higher Education In Australia Case Study Solution and Analysis
Intro
Financing Higher Education In Australia Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting details, processing details and communication services. Major company sectors of the company consist of; books, regulars, consultancy and distribution. The business has a vast item portfolio and its significant items include books, periodicals, online media, exhibitions, research study reports etc. Financing Higher Education In Australia Case Study Help has actually ended up being a specialized information service provider and a big extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
Although, Financing Higher Education In Australia Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing market in general and CMP in particular. These aspects include;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised numerous 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 capabilities of the business could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Financing Higher Education In Australia Case Study Solution has specific strengths that can be utilized to reduce the dangers, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Financing Higher Education In Australia Case Study Analysis in the publishing industry i.e. 60 years enables the business to provide high quality products at a lower cost using its previous experiences.
• The technical resources and abilities produced by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and offer high worth to its customers.
• Strong financial position enables the business to think about several advancement opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weak points which could increase restrictions for the company in implementing its advancement program. The weak points of Financing Higher Education In Australia Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular growth strategies to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing industry is declining given that 2008, affecting Financing Higher Education In Australia Case Study Analysis too, however the growth could be restored by availing specific chances presented in the market. The market opportunities for CMP include;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its huge financial resources.
Dangers
The altering macro patterns in the market and increasing competition in the publishing market has postured particular dangers to Financing Higher Education In Australia Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Financing Higher Education In Australia Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using particular techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the market together with presence of high competitors increases the hazard of losing the customer base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP could not be computed. It could be examined from the Appendix III that the annual overall profits of Financing Higher Education In Australia Case Study Solution during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the business is quite efficient in attracting a large number of customers at a prospective rate.
In addition to it, the 2nd chart which shows the yearly growth in the Financing Higher Education In Australia Case Study Analysis total possessions, reveals that the business is quite effective in including worth to its possessions through its earnings. The growth in possessions reveals that the overall value of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the company using the offered data might be the analysis concerning the distribution of overall incomes of the company. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business segments with a possible growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the numerous external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. It could be said that the general political forces affecting CMP service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the Financing Higher Education In Australia Case Study Analysis 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 integrate impact the need for the publishing market. Together with it, the economic policies associated with the import of books impact the overall business at CPM. China's financial conditions are quite favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques etc. Enhancement of science and innovation together with the rise of digital publishing could reduce the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Financing Higher Education In Australia Case Study Help consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to attract brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Risk of Replacement.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative items for the published files is the documents presented in the virtual libraries on certain websites. The changing consumer choices towards digital learning increase the risk of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Financing Higher Education In Australia Case Study Solution include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Financing Higher Education In Australia Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also among the popular gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are moving towards digital publishing and the business need an instant option to prevent the declining market growth. For that reason, intro of digital publishing might show to be an instant option with low amount of danger for the business. Nevertheless, the business could also consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company needs to initially gathers the data related to the customer need, the potential markets, the federal government guidelines and the information related to the rivals provided in the market. If the initial offering proves a success, the company should go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing considering that 2008, revealing a danger to the company's long term presence, however the circumstance can be controlled by considering an advancement plan in the future. The business could consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.
