Fixed Income Arbitrage In A Financial Crisis A Us Treasuries In November 2008 Case Study Solution and Analysis
Fixed Income Arbitrage In A Financial Crisis A Us Treasuries In November 2008 Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details supplier and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Although, Fixed Income Arbitrage In A Financial Crisis A Us Treasuries In November 2008 Case Study Solution has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market trends and forces bring particular difficulties to the publishing industry in basic and CMP in particular. These aspects include;
• Entryway of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The change of the macro markets have raised a number of questions 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 utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Fixed Income Arbitrage In A Financial Crisis A Us Treasuries In November 2008 Case Study Solution has particular strengths that can be utilized to reduce the risks, get rid of the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Fixed Income Arbitrage In A Financial Crisis A Us Treasuries In November 2008 Case Study Analysis in the publishing market i.e. 60 years enables the company to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and provide high worth to its customers.
• Strong monetary position enables the company to think about numerous advancement chances with no fear of raising fund externally.
Together with the strengths, the business has particular weak points which might increase restrictions for the business in implementing its development program. The weak points of Fixed Income Arbitrage In A Financial Crisis A Us Treasuries In November 2008 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific growth strategies to avoid its dependence over the Chinese markets to achieve long term development.
The development of the publishing industry is declining since 2008, affecting Fixed Income Arbitrage In A Financial Crisis A Us Treasuries In November 2008 Case Study Solution as well, however the development could be restored by availing specific chances provided in the market. The marketplace chances for CMP consist of;
• The business could also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its vast funds.
The changing macro patterns in the market and increasing competition in the publishing market has actually posed certain risks to Fixed Income Arbitrage In A Financial Crisis A Us Treasuries In November 2008 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Fixed Income Arbitrage In A Financial Crisis A Us Treasuries In November 2008 Case Study Solution due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using certain techniques like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the industry in addition to existence of high competition increases the risk of losing the customer base.
The company has a quite competitive monetary performance. Due to absence of information, the financial ratios of CMP could not be determined. Nevertheless, the general financial efficiency of the company might be evaluated by utilizing the graphs given in the case Appendices. It could be analyzed from the Appendix III that the annual total earnings of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of Fixed Income Arbitrage In A Financial Crisis A Us Treasuries In November 2008 Case Study Solution is growing and the business is rather effective in bring in a large number of customers at a potential cost.
In addition to it, the 2nd chart which shows the yearly growth in the Fixed Income Arbitrage In A Financial Crisis A Us Treasuries In November 2008 Case Study Solution overall possessions, reveals that the company is rather efficient in adding value to its possessions through its incomes. The growth in assets shows that the total value of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the offered information could be the analysis regarding the distribution of overall revenues of the company. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sectors with a prospective development to attain its future advancement objective.
PESTEL analysis might be carried out to discover the numerous external forces affecting the efficiency of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a considerable influence on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. Therefore, it might be said that the overall political forces impacting Fixed Income Arbitrage In A Financial Crisis A Us Treasuries In November 2008 Case Study Analysis service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer choices.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques and so on. Enhancement of science and innovation along with the rise of digital publishing might reduce the need for the CMP items, if certain actions would not be taken soon.
Environmental forces impacting Fixed Income Arbitrage In A Financial Crisis A Us Treasuries In November 2008 Case Study Help consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be utilized to analyze the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to attract new entrants to the publishing industry. However, the existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Threat of Replacement is high for the Chinese Publishing Market. The replacement items for the published documents is the documents presented in the digital libraries on specific sites. The altering consumer choices towards digital knowing increase the risk of alternative for the industry.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Fixed Income Arbitrage In A Financial Crisis A Us Treasuries In November 2008 Case Study Help consist of the suppliers of the paper for publishing files. 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 Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive rates.
CMP operates in a highly competitive industry with the presence of large number of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Fixed Income Arbitrage In A Financial Crisis A Us Treasuries In November 2008 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 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 CMP quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as Fixed Income Arbitrage In A Financial Crisis A Us Treasuries In November 2008 Case Study Solution and CIP. It is likewise one of the prominent players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
• Use of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the company along with the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the business require an immediate solution to avoid the declining industry growth. Introduction of digital publishing could prove to be an immediate solution with low amount of threat for the business. Nevertheless, the business might also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business should initially collects the data related to the customer demand, the potential markets, the federal government policies and the information 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 business would be able to execute its digital publishing program.
The development of the publishing industry is declining considering that 2008, showing a hazard to the business's long term existence, however the circumstance can be controlled by considering a development plan in the future. The business might think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entryway in the new markets.