Financing Of Commercial Real Estate Case Study Solution and Analysis
Financing Of Commercial Real Estate Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized details company and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Financing Of Commercial Real Estate Case Study Solution has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring specific challenges to the publishing market in general and CMP in particular. These aspects include;
• Entrance of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the company could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Financing Of Commercial Real Estate Case Study Solution has specific strengths that can be utilized to reduce the risks, conquer the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Financing Of Commercial Real Estate Case Study Solution in the publishing market i.e. 60 years permits the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and abilities created by its effective journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its risk and provide high value to its clients.
• Strong monetary position permits the company to think about numerous advancement chances with no fear of raising fund externally.
Together with the strengths, the company has certain weak points which might increase restrictions for the business in implementing its development program. The weak points of Financing Of Commercial Real Estate Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the business still has traditional 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 particular growth strategies to avoid its reliance over the Chinese markets to achieve long term growth.
The growth of the publishing industry is declining given that 2008, impacting Financing Of Commercial Real Estate Case Study Solution as well, however the development might be restored by availing certain opportunities presented in the market. The market chances for CMP include;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its huge funds.
The changing macro trends in the market and increasing competitors in the publishing market has posed certain hazards to Financing Of Commercial Real Estate Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Financing Of Commercial Real Estate 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 competitors can gain a strong customer base by utilizing certain strategies like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the industry along with existence of high competition increases the threat of losing the customer base.
Due to absence of data, the financial ratios of CMP could not be determined. It might be analyzed from the Appendix III that the yearly overall profits of Financing Of Commercial Real Estate Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of CMP is growing and the business is quite effective in attracting a large number of consumers at a prospective rate.
Along with it, the second chart which reveals the annual development in the Financing Of Commercial Real Estate Case Study Analysis total assets, shows that the company is quite effective in including value to its possessions through its incomes. The development in possessions shows that the overall value of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business using the provided information might be the analysis relating to the distribution of overall incomes of the company. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sections with a potential growth to accomplish its future advancement objective.
PESTEL analysis could be performed to find out the different external forces affecting the performance of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a significant impact on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. It might be said that the general political forces affecting CMP company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the Financing Of Commercial Real Estate Case Study Help in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the demand for the publishing market. Along with it, the financial policies connected to the import of books affect the total organisation at CPM. However, China's financial conditions are quite beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer choices.
Technological forces affecting the CMP consist of the technological development in the reading methods etc. Improvement of science and technology together with the increase of digital publishing could reduce the need for the CMP items, if certain actions would not be taken soon.
Environmental forces impacting Financing Of Commercial Real Estate Case Study Help consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing should not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be utilized to evaluate the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Danger of Alternative.
Hazard of Replacement is high for the Chinese Publishing Market. The substitute products for the released files is the files presented in the digital libraries on certain websites. The changing customer choices towards digital learning increase the risk of alternative for the industry.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Financing Of Commercial Real Estate Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the biggest 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 existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive costs.
CMP operates in a highly competitive industry with the existence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Financing Of Commercial Real Estate Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 competitor of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is also among the prominent players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose need of its items in the market.
With the deep analysis of the internal and external environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the company need an instant service to prevent the declining industry growth. Introduction of digital publishing could prove to be an instant solution with low amount of danger for the company. The company could also consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company ought to first gathers the information related to the consumer need, the potential markets, the government regulations and the data related to the rivals presented in the market. If the preliminary offering shows a success, the business ought to go for the other markets. In this way the company would be able to implement its digital publishing program.
Although, the growth of the publishing market is decreasing since 2008, revealing a hazard to the company's long term existence, but the circumstance can be controlled by considering an advancement strategy in the future. The company could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entrance in the new markets.