Freddie Mac Managing In Conservatorship Case Study Solution and Analysis
Introduction
Freddie Mac Managing In Conservatorship Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering details, processing details and communication services. Major organisation segments of the company include; books, regulars, consultancy and distribution. The business has a huge item portfolio and its major products include books, periodicals, online media, exhibits, research study reports etc. Freddie Mac Managing In Conservatorship Case Study Help has actually ended up being a specialized info company and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has actually spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market patterns and forces bring particular obstacles to the publishing industry in general and Freddie Mac Managing In Conservatorship Case Study Help in particular. These factors include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised several 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 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
Freddie Mac Managing In Conservatorship Case Study Analysis has specific strengths that can be used to minimize the risks, conquer the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Freddie Mac Managing In Conservatorship Case Study Help in the publishing industry i.e. 60 years allows the business to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and provide high value to its customers.
• Strong monetary position allows the company to consider numerous development opportunities with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weaknesses which could increase constraints for the company in executing its advancement program. The weak points of Freddie Mac Managing In Conservatorship Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular expansion plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is decreasing considering that 2008, impacting Freddie Mac Managing In Conservatorship Case Study Analysis as well, but the growth could be restored by availing particular opportunities provided in the market. The market chances for CMP include;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing industry has presented specific dangers to Freddie Mac Managing In Conservatorship Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Freddie Mac Managing In Conservatorship Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number 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 consumer base by utilizing particular techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the market along with presence of high competition increases the threat of losing the client base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP might not be computed. It could be evaluated from the Appendix III that the yearly total profits of Freddie Mac Managing In Conservatorship Case Study Analysis during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the business is rather efficient in attracting a large number of customers at a potential price.
Together with it, the second chart which shows the yearly development in the Freddie Mac Managing In Conservatorship Case Study Analysis overall properties, shows that the business is quite efficient in including value to its possessions through its earnings. The development in possessions shows that the overall value of the company is also increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company using the given data could be the analysis concerning the circulation of overall revenues of the company. 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 business could move towards other company sections with a potential growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces impacting the efficiency of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the general political forces affecting Freddie Mac Managing In Conservatorship Case Study Solution organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the Freddie Mac Managing In Conservatorship Case Study Analysis in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the need for the publishing market. Along with it, the economic policies associated with the import of books affect the total service at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and innovation in addition to the increase of digital publishing could lower the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Freddie Mac Managing In Conservatorship Case Study Analysis consists of the issues of ecological communities over the usage 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 must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be utilized to evaluate the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to bring in new entrants to the publishing industry. Nevertheless, the existence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Risk of Replacement is high for the Chinese Publishing Market. The substitute products for the published documents is the files presented in the virtual libraries on certain sites. The altering consumer choices towards digital learning increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Freddie Mac Managing In Conservatorship Case Study Analysis include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Freddie Mac Managing In Conservatorship Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 might wean the market share of CMP quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is also among the prominent gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future development. As the choices are moving towards digital publishing and the company require an instant solution to prevent the declining industry development. Intro of digital publishing could prove to be an immediate option with low amount of threat for the company. The company could also think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company should first gathers the data related to the consumer need, the prospective markets, the government guidelines and the data related to the competitors presented in the market. If the preliminary offering proves a success, the company needs to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, revealing a hazard to the company's long term existence, however the situation can be controlled by considering an advancement strategy 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 danger of failure for entrance in the new markets.
