First Quantum Minerals Vs Eurasian Natural Resources Case Study Solution and Analysis
First Quantum Minerals Vs Eurasian Natural Resources Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information service provider and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Although, First Quantum Minerals Vs Eurasian Natural Resources Case Study Solution has actually invested its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring particular difficulties to the publishing market in basic and CMP in specific. These aspects include;
• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
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 circumstance? Do the long important experience, technical resources and the abilities of the business could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
First Quantum Minerals Vs Eurasian Natural Resources Case Study Help has particular strengths that can be made use of to minimize the risks, conquer the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of First Quantum Minerals Vs Eurasian Natural Resources Case Study Analysis in the publishing market i.e. 60 years enables the company to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its effective journey supply a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and supply high worth to its clients.
• Strong monetary position permits the business to consider numerous advancement opportunities without any fear of raising fund externally.
Together with the strengths, the company has specific weaknesses which could increase restrictions for the company in implementing its advancement program. The weaknesses of First Quantum Minerals Vs Eurasian Natural Resources Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular growth plans to avoid its dependence over the Chinese markets to accomplish long term growth.
The growth of the publishing industry is decreasing given that 2008, impacting First Quantum Minerals Vs Eurasian Natural Resources Case Study Solution as well, but the development could be restored by availing certain chances presented in the market. The marketplace chances for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its vast financial resources.
The changing macro patterns in the market and increasing competition in the publishing market has presented particular dangers to First Quantum Minerals Vs Eurasian Natural Resources Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of First Quantum Minerals Vs Eurasian Natural Resources Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using certain methods like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the industry in addition to existence of high competitors increases the hazard of losing the client base.
Due to lack of data, the monetary ratios of CMP might not be computed. It might be examined from the Appendix III that the yearly overall incomes of First Quantum Minerals Vs Eurasian Natural Resources Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the business is quite effective in drawing in a big number of customers at a prospective cost.
Along with it, the 2nd graph which shows the yearly development in the First Quantum Minerals Vs Eurasian Natural Resources Case Study Analysis total possessions, reveals that the company is rather effective in adding value to its possessions through its profits. The growth in possessions reveals that the overall worth of the company is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered information could be the analysis concerning the distribution of total profits of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business segments with a possible growth to accomplish its future advancement objective.
PESTEL analysis might be performed to discover the various external forces impacting the performance of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a considerable impact on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. Therefore, it could be said that the general political forces affecting First Quantum Minerals Vs Eurasian Natural Resources Case Study Analysis organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the First Quantum Minerals Vs Eurasian Natural Resources Case Study Solution in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the need for the publishing market. In addition to it, the economic policies associated with the import of books impact the general company at CPM. China's financial conditions are quite favorable for CMP with high GDP growth and consumer earnings 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 changing consumer choices.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies and so on. Improvement of science and technology in addition to the rise of digital publishing could reduce the demand for the CMP products, if certain actions would not be taken quickly.
Environmental forces impacting First Quantum Minerals Vs Eurasian Natural Resources Case Study Analysis consists of the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing must not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to attract new entrants to the publishing market. However, the presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Danger of Alternative is high for the Chinese Publishing Industry. The alternative items for the published documents is the files provided in the digital libraries on specific websites. The altering consumer preferences towards digital knowing increase the hazard of alternative for the market.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the First Quantum Minerals Vs Eurasian Natural Resources Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider 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 market saturation, the purchasers requires high quality files at competitive prices.
CMP operates in a highly competitive industry with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of First Quantum Minerals Vs Eurasian Natural Resources Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the same period, CIP releases comparable type of books. For a big period, CIP held the biggest market share, and still ranks third and second in different market sectors, with a major focus on educational publications. CIP serves as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of First Quantum Minerals Vs Eurasian Natural Resources Case Study Help quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also one of the prominent gamers in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose demand of its items in the market.
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the choices are moving towards digital publishing and the company need an immediate option to avoid the decreasing industry development. Therefore, introduction of digital publishing might prove to be an immediate option with low amount of risk for the company. However, the business might likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company must initially gathers the data related to the consumer demand, the possible markets, the government policies and the information related to the competitors presented in the market. If the initial offering shows a success, the company must go for the other markets. In this method the company would be able to implement its digital publishing program.
Although, the development of the publishing market is decreasing since 2008, revealing a risk to the company's long term existence, however the situation can be managed by thinking about an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.