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Foreign Direct Investment In The Middle East Riyadh And Dubai Case Help

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Foreign Direct Investment In The Middle East Riyadh And Dubai Case Study Solution and Analysis


Introduction

Foreign Direct Investment In The Middle East Riyadh And Dubai Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized details supplier and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.

Vital Concerns

Although, Foreign Direct Investment In The Middle East Riyadh And Dubai Case Study Analysis has spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring specific difficulties to the publishing industry in general and CMP in particular. These factors consist of;

• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
Executive Summary
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities of the business 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


Foreign Direct Investment In The Middle East Riyadh And Dubai Case Study Analysis has certain strengths that can be utilized to minimize the threats, overcome the weak point and obtain the opportunities. Strengths of CMP are provided as follows;

• The long term experience of Foreign Direct Investment In The Middle East Riyadh And Dubai Case Study Help in the publishing market i.e. 60 years enables the company to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and offer high worth to its consumers.
• Strong financial position allows the company to consider several advancement chances without any fear of raising fund externally.

Weaknesses

Together with the strengths, the company has certain weaknesses which might increase restraints for the business in executing its development program. The weak points of Foreign Direct Investment In The Middle East Riyadh And Dubai Case Study Solution are offered as follows;

• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific expansion plans to prevent its dependence over the Chinese markets to achieve long term growth.
Porter's 5 Forces Analysis
Opportunities

The development of the publishing market is declining because 2008, affecting Foreign Direct Investment In The Middle East Riyadh And Dubai Case Study Help as well, however the growth might be restored by availing specific chances provided in the market. The marketplace chances for CMP include;

• The company could likewise present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its vast funds.

Hazards

The altering macro trends in the market and increasing competitors in the publishing market has presented specific risks to Foreign Direct Investment In The Middle East Riyadh And Dubai Case Study Analysis including;( Gurel, 2017).

• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Foreign Direct Investment In The Middle East Riyadh And Dubai Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing particular techniques like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing companies in the market in addition to existence of high competitors increases the threat of losing the client base.

Financial Analysis.
Swot Analysis
The company has a rather competitive monetary performance. Due to absence of information, the financial ratios of CMP could not be determined. Nevertheless, the total financial efficiency of the business could be evaluated by utilizing the charts given in the case Appendices. It might be examined from the Appendix III that the yearly overall revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of Foreign Direct Investment In The Middle East Riyadh And Dubai Case Study Solution is growing and the company is quite efficient in drawing in a large number of clients at a possible cost.

In addition to it, the second graph which reveals the yearly development in the Foreign Direct Investment In The Middle East Riyadh And Dubai Case Study Solution overall properties, shows that the business is rather efficient in adding worth to its possessions through its profits. The development in properties reveals that the overall value of the firm is also increasing with increasing the overall profits. (Unknown, 2013).

Another financial analysis of the business utilizing the given information might be the analysis concerning the circulation of total profits of the business. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sectors with a possible growth to achieve its future advancement objective.

PESTEL Analysis

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

Political.

As the publishing sector could have a significant influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. It could be said that the overall political forces impacting CMP service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.

Cost-effective.

Financial forces affecting the publishing sector in general and the Foreign Direct Investment In The Middle East Riyadh And Dubai Case Study Analysis in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the need for the publishing market. Along with it, the economic policies associated with the import of books affect the total company at CPM. China's economic conditions are quite beneficial for CMP with high GDP development and consumer income level.

Social and Demographical.

The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer preferences.

Technological.

Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Improvement of science and technology along with the increase of digital publishing might decrease the demand for the CMP products, if specific actions would not be taken quickly.

Environmental.
Vrio Analysis
Environmental forces impacting Foreign Direct Investment In The Middle East Riyadh And Dubai Case Study Solution consists of the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing needs to not be harmful for the environment.

Legal.

Legal policies for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.

Industry Analysis (Porter's Five Forces Design).

Porter's Five Forces Design could be used to evaluate the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.

Danger of New Entrants.

Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to attract brand-new entrants to the publishing industry. The presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.

Risk of Replacement.

Hazard of Alternative is high for the Chinese Publishing Market. The alternative items for the published files is the documents presented in the virtual libraries on specific websites. The altering customer choices towards digital knowing increase the hazard of substitution 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 etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competition for CMP.

Bargaining Power of Supplier.

The major suppliers of the Foreign Direct Investment In The Middle East Riyadh And Dubai Case Study Analysis include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall 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 large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive costs.

Rivals Analysis.

CMP operates in an extremely competitive market with the existence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Foreign Direct Investment In The Middle East Riyadh And Dubai Case Study Solution consist of;.

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

Chemical Market Press (CIP).

CIPis one of the close competitors of CMP. Established in the same period, CIP publishes similar type of books. For a big period, CIP held the largest market share, and still ranks 3rd and 2nd in numerous market sections, with a significant focus on academic publications. CIP serves as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of Foreign Direct Investment In The Middle East Riyadh And Dubai Case Study Analysis quickly in the current market situation.

Posts and telecommunication Press (PTP).

Another close rival of CMP is PTP. It was likewise established in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also among the prominent players in the publishing market with a yearly total revenues of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Usage of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.

Alernative-2: Present Digital Publishing

Pros

• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.

Cons

• Competition 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 business to lose need of its items in the market.

Recommendations

With the deep analysis of the external and internal environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the company need an immediate service to avoid the declining industry growth. Introduction of digital publishing could prove to be an instant service with low amount of danger for the business. The company might also think about the growth program after the success of its digital publishing program.

Application

In order to present digital publishing in its item portfolio, the company ought to first collects the information related to the consumer demand, the potential markets, the government guidelines and the data related to the competitors presented in the market. If the preliminary offering shows a success, the company must go for the other markets. In this method the business would be able to implement its digital publishing program.

Conclusion

Although, the development of the publishing industry is decreasing given that 2008, revealing a hazard to the business's long term presence, but the scenario can be controlled by considering a development plan in the future. The company might consider introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entryway in the new markets.

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