Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Solution and Analysis
Introduction
Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 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 info supplier and a big extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Help has invested its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring particular difficulties to the publishing industry in basic and CMP in specific. These aspects include;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The transformation of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the business could be made use of to strive for the future advancement 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 Help has certain strengths that can be utilized to lower the threats, get rid of the weak point and get the chances. 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 Analysis in the publishing industry i.e. 60 years permits the company to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and offer high worth to its clients.
• Strong financial position allows the company to think about numerous development opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weaknesses which could increase restrictions for the business in executing its advancement program. The weaknesses of Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose certain expansion strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is declining since 2008, impacting Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Help as well, however the development could be revived by availing particular opportunities provided in the market. The market opportunities for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its huge funds.
Hazards
The altering macro trends in the market and increasing competition in the publishing market has presented specific dangers 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. virtual libraries could result in decreasing 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 rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using certain strategies like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the industry along with existence of high competitors increases the threat of losing the customer base.
Monetary Analysis.
The business has a quite competitive financial performance. Due to lack of information, the financial ratios of CMP could not be determined. However, the total financial efficiency of the company might be analyzed by using the charts given up the case Appendices. It could be examined from the Appendix III that the annual total incomes of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Analysis is growing and the business is rather efficient in drawing in a a great deal of customers at a possible rate.
Together with it, the second graph which shows the annual growth in the Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Solution total possessions, shows that the business is rather efficient in adding worth to its possessions through its revenues. The growth in properties reveals that the overall value of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided data might be the analysis regarding the distribution of total earnings of the business. Huge 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 might move towards other organisation sections with a potential growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the numerous external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. It might be said that the general political forces affecting CMP business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Help in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the demand for the publishing market. In addition to it, the financial policies related to the import of books affect the overall organisation at CPM. China's economic conditions are quite favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out helpful materials and so on. China has the greatest population on the planet with a high population growth, showing the increasing number of customers of the Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Solution. The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and innovation in addition to the increase of digital publishing could decrease the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Solution consists of the concerns of ecological communities over the use of paper in publishing books. The paper utilized 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 policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be used to evaluate the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to draw in brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Hazard of Alternative is high for the Chinese Publishing Industry. The alternative products for the released documents is the files presented in the digital libraries on certain websites. The altering consumer choices towards digital learning increase the danger of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry 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 competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Solution include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 market saturation, the buyers needs high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of large number of rivals. The company 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 B Us Treasuries In December 2008 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same period, CIP releases comparable kind of books. For a big period, CIP held the biggest market share, and still ranks third and 2nd in numerous market sectors, with a significant concentrate on instructional publications. CIP functions as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Fixed Income Arbitrage In A Financial Crisis B Us Treasuries In December 2008 Case Study Help quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is also among the prominent players in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business along with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future development. As the choices are moving towards digital publishing and the company need an immediate service to avoid the decreasing market development. Introduction of digital publishing could show to be an instant solution with low quantity of risk for the company. The company might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company should initially gathers the data related to the customer demand, the prospective markets, the government guidelines and the information related to the rivals presented in the market. If the preliminary offering proves a success, the company needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing because 2008, showing a danger to the business's long term presence, however the situation can be managed by considering an advancement strategy in the future. The company might think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entrance in the new markets.
