Friend Bank The Time For Hope Case Study Solution and Analysis
Introduction
Friend Bank The Time For Hope Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services including; gathering information, processing info and interaction services. Major company segments of the company include; books, periodicals, consultancy and distribution. The company has a vast item portfolio and its significant products include books, periodicals, online media, exhibitions, research reports etc. Friend Bank The Time For Hope Case Study Analysis has ended up being a specialized information provider and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Friend Bank The Time For Hope Case Study Solution has actually spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring specific obstacles to the publishing market in general and CMP in specific. These factors include;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The transformation of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the business could be utilized 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
Friend Bank The Time For Hope Case Study Help has specific strengths that can be utilized to minimize the threats, overcome the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Friend Bank The Time For Hope Case Study Analysis in the publishing industry i.e. 60 years permits the business to provide high quality items at a lower cost using its prior experiences.
• The technical resources and abilities created by its successful journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and supply high value to its clients.
• Strong monetary position allows the company to consider numerous advancement chances without any fear of raising fund externally.
Weak points
In addition to the strengths, the business has certain weak points which might increase restrictions for the company in implementing its development program. The weak points of Friend Bank The Time For Hope Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose particular growth strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is declining since 2008, affecting Friend Bank The Time For Hope Case Study Analysis as well, but the development might be revived by availing certain opportunities provided in the market. The marketplace chances for CMP include;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its vast financial resources.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing market has actually positioned particular hazards to Friend Bank The Time For Hope Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Friend Bank The Time For Hope Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain methods like aggressive promo, quality products, and so on
• Entrance of new publishing firms in the industry together with existence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
The business has a quite competitive financial efficiency. Due to absence of information, the monetary ratios of CMP could not be computed. The overall monetary performance of the company might be evaluated by using the charts provided in the case Appendices. It might be evaluated from the Appendix III that the annual overall earnings of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Friend Bank The Time For Hope Case Study Solution is growing and the business is quite effective in drawing in a large number of consumers at a potential rate.
Along with it, the 2nd graph which shows the yearly development in the Friend Bank The Time For Hope Case Study Help total properties, shows that the business is rather effective in including value to its properties through its profits. The development in possessions reveals that the overall worth of the company is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the company using the given information might be the analysis relating to the distribution of total earnings of the company. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sectors with a potential growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the various external forces affecting the performance of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it might be stated that the general political forces affecting Friend Bank The Time For Hope Case Study Solution company are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading informative materials etc. China has the greatest population worldwide with a high population development, revealing the increasing number of consumers of the Friend Bank The Time For Hope Case Study Help. However, the customer preferences are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading methods and so on. Improvement of science and innovation together with the rise of digital publishing might decrease the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Friend Bank The Time For Hope Case Study Help includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be used to examine the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to bring in new entrants to the publishing industry. The existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Substitution.
Hazard of Substitution is high for the Chinese Publishing Market. The replacement items for the published files is the files presented in the virtual libraries on particular sites. The changing consumer preferences towards digital learning increase the danger of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Friend Bank The Time For Hope Case Study Solution consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of large number of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Friend Bank The Time For Hope Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is also among the popular gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the business require an immediate service to prevent the decreasing market growth. The business might likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company needs to initially collects the information related to the consumer demand, the prospective markets, the government guidelines and the data related to the rivals presented in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing considering that 2008, revealing a risk to the business's long term presence, however the circumstance can be controlled by considering a development plan in the future. The company might think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.
