Fintech Case Study Solution and Analysis
Introduction
Fintech Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services including; collecting info, processing details and interaction services. Major business sectors of the business include; books, regulars, consultancy and distribution. The company has a large product portfolio and its major products include books, periodicals, online media, exhibits, research study reports etc. Fintech Case Study Analysis has actually become a specialized info supplier and a large extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Fintech Case Study Help has spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring specific challenges to the publishing industry in general and CMP in particular. These elements consist of;
• Entrance of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised several concerns 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 company could be utilized 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
Fintech Case Study Solution has certain strengths that can be utilized to decrease the risks, get rid of the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Fintech Case Study Help in the publishing market i.e. 60 years permits the company to provide high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and offer high worth to its clients.
• Strong financial position permits the company to think about several development chances without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weak points which might increase restrictions for the company in implementing its development program. The weaknesses of Fintech Case Study Solution are given 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 needs to propose specific expansion plans to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing market is declining because 2008, impacting Fintech Case Study Solution too, however the development might be revived by availing particular opportunities provided in the market. The marketplace opportunities for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast funds.
Dangers
The altering macro patterns in the market and increasing competition in the publishing market has actually posed specific risks to Fintech Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Fintech Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular methods like aggressive promotion, quality products, etc.
• Entrance of new publishing companies in the industry along with presence of high competitors increases the hazard of losing the client base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the yearly total incomes of Fintech Case Study Help during the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the company is quite efficient in bring in a big number of clients at a prospective price.
Along with it, the second graph which shows the annual growth in the Fintech Case Study Solution total assets, reveals that the company is quite effective in including value to its properties through its revenues. The development in properties shows that the total worth of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business using the provided information could be the analysis relating to the distribution of overall profits of the company. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service segments with a prospective growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the numerous external forces affecting the performance of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. It could be said that the overall political forces impacting CMP organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading informative products etc. China has the highest population worldwide with a high population growth, revealing the increasing number of customers of the Fintech Case Study Help. However, the consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and innovation in addition to the increase of digital publishing might reduce the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Fintech Case Study Help includes the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal guidelines 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 Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be utilized to analyze the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to bring in new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Substitution.
Hazard of Substitution is high for the Chinese Publishing Market. The replacement products for the published files is the files provided in the digital libraries on specific sites. The changing customer preferences towards digital learning increase the danger of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence 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 likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Fintech Case Study Solution include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling 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 files at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of large number of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Fintech Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same duration, CIP releases similar type of books. For a big period, CIP held the largest market share, and still ranks 3rd and second in numerous market sections, 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 might wean the market share of Fintech Case Study Analysis quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is also one of the popular players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the company need an instant service to prevent the declining market growth. Therefore, introduction of digital publishing could show to be an immediate service with low amount of threat for the company. However, the company could likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business must initially gathers the data related to the customer need, the potential markets, the government guidelines and the data related to the competitors provided in the market. After that, the business needs to decide one possible sector for its initial offering. It needs to collect research that how it could distinguish its digital publishing from the existing competitors' items. The actions above the business need to go for the initial offering. The business must go for the other markets if the initial offering shows a success. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing considering that 2008, revealing a danger to the company's long term existence, however the scenario can be controlled by thinking about a development strategy in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entryway in the new markets.
