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Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Solution

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Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Solution and Analysis


Intro

Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized details provider and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.

Important Concerns

CMP has invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring particular difficulties to the publishing market in basic and Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Solution in specific. These aspects include;

• Entrance of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
Executive Summary
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 situation? Do the long valuable experience, technical resources and the abilities of the company could be utilized 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


Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Analysis has particular strengths that can be utilized to reduce the risks, conquer the weakness and obtain the opportunities. Strengths of CMP are provided as follows;

• The long term experience of Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Help in the publishing market i.e. 60 years permits the company to provide high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and provide high value to its customers.
• Strong financial position permits the company to think about a number of advancement opportunities with no fear of raising fund externally.

Weaknesses

Along with the strengths, the business has specific weak points which could increase restraints for the company in executing its development program. The weaknesses of Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Analysis are offered as follows;

• Despite of being a science and technology publishing company, 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 growth. It needs to propose particular growth plans to avoid its reliance over the Chinese markets to achieve long term development.
Porter's 5 Forces Analysis
Opportunities

Although, the growth of the publishing industry is declining given that 2008, impacting Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Solution as well, but the development might be revived by availing certain chances presented in the market. The marketplace opportunities for CMP include;

• The business might also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large funds.

Threats

The changing macro trends in the market and increasing competitors in the publishing industry has actually presented particular risks to Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Analysis consisting of;( Gurel, 2017).

• Intro of digital publishing i.e. digital libraries could cause declining market share of Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Analysis due to the consumer 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 rivals can acquire a strong customer base by using specific methods like aggressive promo, quality products, etc.
• Entrance of brand-new publishing firms in the market together with existence of high competitors increases the hazard of losing the client base.

Financial Analysis.
Swot Analysis
The business has a rather competitive monetary performance. Due to lack of information, the monetary ratios of CMP might not be calculated. The general monetary efficiency of the business might be analyzed by utilizing the graphs offered in the case Appendices. It might be analyzed from the Appendix III that the yearly overall profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Help is growing and the company is quite effective in bring in a large number of clients at a potential price.

Together with it, the 2nd chart which shows the yearly growth in the Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Help overall possessions, reveals that the company is rather effective in adding worth to its properties through its earnings. The development in possessions shows that the overall value of the firm is also increasing with increasing the total earnings. (Unidentified, 2013).

Another financial analysis of the company using the offered data could be the analysis relating to the circulation of overall incomes of the business. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sections with a possible growth to accomplish its future development goal.

PESTEL Analysis

PESTEL analysis might be carried out to learn the numerous external forces affecting the efficiency of the company and the current trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).

Political.

As the publishing sector might have a considerable influence on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it might be said that the general political forces impacting Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Analysis organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.

Economical.

Economic forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the need for the publishing market.

Social and Demographical.

Social and demographical forces consist of the population growth, the customer's choices towards reading useful materials and so on. China has the highest population in the world with a high population development, showing the increasing number of consumers of the Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Help. Nevertheless, the customer preferences are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer choices.

Technological.

Technological forces affecting the CMP consist of the technological development in the reading strategies etc. Enhancement of science and technology together with the rise of digital publishing might decrease the need for the CMP items, if certain actions would not be taken quickly.

Environmental.
Vrio Analysis
Ecological forces affecting Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Help consists of the issues of environmental neighborhoods 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 utilized while publishing ought to not be damaging for the environment.

Legal.

Legal regulations for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.

Market Analysis (Porter's 5 Forces Model).

Porter's Five Forces Model might be utilized to analyze the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.

Danger of New Entrants.

Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to attract brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.

Hazard of Substitution.

Threat of Replacement is high for the Chinese Publishing Market. The replacement products for the released documents is the files provided in the virtual libraries on certain sites. The altering consumer preferences towards digital knowing increase the threat of alternative for the industry.

Competitive Rivalry.

Competitive competition in the publishing market is high. The existence 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. In addition to it, new entrants are likewise entering into the market increasing the competition for CMP.

Bargaining Power of Supplier.

The significant suppliers of the Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Solution consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.

Bargaining Power of Buyer.

Haggling power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive rates.

Rivals Analysis.

CMP operates in an extremely competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Solution include;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Industry Press (CIP).

CIPis one of the close rivals of CMP. Founded in the very same period, CIP releases similar kind of books. For a big time period, CIP held the largest market share, and still ranks third and second in various market segments, with a significant focus on instructional publications. CIP acts as a danger 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 marketplace share of Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Help quickly in the existing market situation.

Posts and telecommunication Press (PTP).

Another close competitor of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise one of the prominent gamers in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.

Cons

• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose demand of its products in the market.

Recommendations

With the deep analysis of the internal and external environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the business need an immediate option to prevent the declining industry development. Therefore, intro of digital publishing could prove to be an immediate service with low quantity of danger for the business. Nevertheless, the business could also consider the expansion program after the success of its digital publishing program.

Application

In order to present digital publishing in its product portfolio, the company should initially gathers the data associated with the consumer need, the potential markets, the government guidelines and the data related to the rivals provided in the market. After that, the company needs to decide one prospective sector for its preliminary offering. It must collect research study that how it might distinguish its digital publishing from the existing competitors' items. The steps above the business need to go for the preliminary offering. The company must go for the other markets if the preliminary offering proves a success. In this way the company would be able to implement its digital publishing program.

Conclusion

Although, the development of the publishing market is declining given that 2008, revealing a risk to the company's long term existence, but the scenario can be controlled by considering an advancement plan in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entrance in the new markets.

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