Fixed Income Arbitrage In A Financial Crisis C Ted Spread And Swap Spread In November 2008 Case Study Solution and Analysis
Introduction
Fixed Income Arbitrage In A Financial Crisis C Ted Spread And Swap Spread In November 2008 Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info company and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has spent its 60 years journey smoothly, being an effective publishing home, however, the altering macro market trends and forces bring certain challenges to the publishing market in basic and Fixed Income Arbitrage In A Financial Crisis C Ted Spread And Swap Spread In November 2008 Case Study Solution in specific. These aspects include;
• Entrance of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The improvement 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 capabilities of the business could be used to pursue 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 C Ted Spread And Swap Spread In November 2008 Case Study Help has specific strengths that can be utilized to minimize the threats, conquer the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Fixed Income Arbitrage In A Financial Crisis C Ted Spread And Swap Spread In November 2008 Case Study Help in the publishing market i.e. 60 years allows the company to supply high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and provide high worth to its customers.
• Strong financial position allows the company to think about several development chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weaknesses which could increase constraints for the business in executing its advancement program. The weak points of Fixed Income Arbitrage In A Financial Crisis C Ted Spread And Swap Spread 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 suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose specific growth plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing market is decreasing given that 2008, impacting Fixed Income Arbitrage In A Financial Crisis C Ted Spread And Swap Spread In November 2008 Case Study Help too, however the development could be revived by availing certain opportunities presented in the market. The market chances for CMP include;
• 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 growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast funds.
Threats
The altering macro trends in the market and increasing competition in the publishing industry has postured certain dangers to Fixed Income Arbitrage In A Financial Crisis C Ted Spread And Swap Spread In November 2008 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to declining market share of Fixed Income Arbitrage In A Financial Crisis C Ted Spread And Swap Spread In November 2008 Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular strategies like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the industry in addition to existence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
The company has a rather competitive financial performance. Due to lack of data, the financial ratios of CMP could not be computed. Nevertheless, the general financial performance of the business might be examined by utilizing the graphs given up the case Appendices. It might be evaluated from the Appendix III that the yearly total profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of Fixed Income Arbitrage In A Financial Crisis C Ted Spread And Swap Spread In November 2008 Case Study Analysis is growing and the company is quite efficient in drawing in a large number of customers at a prospective cost.
Together with it, the 2nd graph which reveals the annual growth in the Fixed Income Arbitrage In A Financial Crisis C Ted Spread And Swap Spread In November 2008 Case Study Solution total possessions, shows that the business is quite effective in including worth to its assets through its earnings. The development in properties reveals that the total worth of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered data could be the analysis concerning the distribution of total profits of the business. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business segments with a prospective growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to discover the numerous external forces affecting the performance of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. It might be said that the overall political forces affecting CMP company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Improvement of science and innovation together with the increase of digital publishing could reduce the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Fixed Income Arbitrage In A Financial Crisis C Ted Spread And Swap Spread In November 2008 Case Study Solution consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be utilized to examine the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to draw in brand-new entrants to the publishing market. The presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Danger of Alternative is high for the Chinese Publishing Industry. The substitute items for the released documents is the documents presented in the digital libraries on specific sites. The changing consumer preferences towards digital learning increase the danger of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Fixed Income Arbitrage In A Financial Crisis C Ted Spread And Swap Spread In November 2008 Case Study Solution include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 marketplace saturation, the purchasers requires high quality documents at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Fixed Income Arbitrage In A Financial Crisis C Ted Spread And Swap Spread In November 2008 Case Study Solution consist of;.
• 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 existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also among the popular players in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding 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 consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the company to lose demand of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an instant service to avoid the declining industry growth. The business might also consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business must first gathers the data related to the customer need, the possible markets, the government guidelines and the information related to the rivals provided in the market. If the preliminary offering proves a success, the business must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing because 2008, revealing a hazard to the company's long term existence, but the scenario can be managed by thinking about a development plan in the future. The business could 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 new markets.
