Fintech Case Study Solution and Analysis
Intro
Fintech Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info provider and a large thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
CMP has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring particular challenges to the publishing market in general and Fintech Case Study Analysis in specific. These elements include;
• Entrance of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The improvement of the macro markets have raised several 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 made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Fintech Case Study Solution has particular strengths that can be used to reduce the dangers, get rid of the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Fintech Case Study Analysis in the publishing industry i.e. 60 years permits the company to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its threat and provide high worth to its consumers.
• Strong monetary position enables the company to think about several development opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weaknesses which could increase restraints for the company in executing its advancement program. The weaknesses of Fintech Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific expansion plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is declining considering that 2008, affecting Fintech Case Study Analysis as well, but the development could be revived by availing specific chances presented in the market. The market opportunities for CMP consist of;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its vast financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has actually postured particular hazards to Fintech Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Fintech Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of large number 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 particular techniques like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the industry together with existence of high competitors increases the hazard of losing the client base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP might not be computed. It might be evaluated from the Appendix III that the annual total incomes of Fintech Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the company is rather efficient in attracting a large number of consumers at a possible price.
In addition to it, the second graph which shows the annual growth in the Fintech Case Study Solution overall possessions, reveals that the company is rather effective in adding value to its assets through its earnings. The growth in possessions reveals that the overall value of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company using the given information could be the analysis relating to the distribution of total profits of the company. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other business segments with a prospective growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the various external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. Therefore, it might be said that the general political forces impacting Fintech Case Study Help company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the Fintech Case Study Solution in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine impact the demand for the publishing market. In addition to it, the financial policies associated with the import of books affect the general business at CPM. Nevertheless, China's financial conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Enhancement of science and technology along with the increase of digital publishing could lower the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Fintech Case Study Analysis consists of the issues of ecological 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 utilized while publishing needs to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to analyze the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to draw in new entrants to the publishing industry. Nevertheless, the existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Risk of Alternative is high for the Chinese Publishing Industry. The alternative items for the published files is the files provided in the digital libraries on specific websites. The changing consumer choices towards digital knowing increase the threat of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Fintech Case Study Solution 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 general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
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 documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Fintech Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same period, CIP publishes similar type of books. For a large time period, CIP held the largest market share, and still ranks 3rd and second in various market sections, with a significant concentrate on instructional publications. 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 could 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 also founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is likewise among the prominent gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose demand of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company require an instant solution to prevent the declining market development. The company might likewise think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business must first gathers the data related to the consumer need, the prospective markets, the government regulations and the data related to the competitors provided in the market. If the initial offering proves a success, the business must go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining considering that 2008, revealing a threat to the company's long term presence, however the circumstance can be managed by considering an advancement plan in the future. The company might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.
