Global Asset Allocation All That Glitters Case Study Solution and Analysis
Introduction
Global Asset Allocation All That Glitters Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized info provider and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Global Asset Allocation All That Glitters Case Study Help has spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring particular obstacles to the publishing market in general and CMP in particular. These elements include;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the business could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Global Asset Allocation All That Glitters Case Study Analysis has specific strengths that can be utilized to lower the dangers, overcome the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Global Asset Allocation All That Glitters Case Study Solution in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and provide high worth to its consumers.
• Strong monetary position permits the company to think about a number of development opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weaknesses which could increase constraints for the business in executing its development program. The weaknesses of Global Asset Allocation All That Glitters Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, 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 development. It needs to propose specific expansion plans to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing market is decreasing given that 2008, affecting Global Asset Allocation All That Glitters Case Study Analysis also, but the development could be revived by availing specific chances presented in the market. The marketplace opportunities for CMP include;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong client 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 utilizing its vast financial resources.
Hazards
The altering macro trends in the market and increasing competitors in the publishing industry has positioned particular risks to Global Asset Allocation All That Glitters Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Global Asset Allocation All That Glitters Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using particular methods like aggressive promo, quality items, and so on
• Entryway of brand-new publishing companies in the market together with presence of high competitors increases the hazard of losing the client base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP might not be determined. It could be evaluated from the Appendix III that the yearly total incomes of Global Asset Allocation All That Glitters Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of CMP is growing and the company is rather efficient in drawing in a big number of customers at a potential rate.
In addition to it, the 2nd graph which reveals the yearly development in the Global Asset Allocation All That Glitters Case Study Analysis overall properties, shows that the company is quite efficient in including worth to its assets through its incomes. The development in possessions shows that the overall worth of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business using the provided information might be the analysis regarding the circulation of overall incomes of the business. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sectors with a potential growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. It might be said that the general political forces impacting CMP company 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 Global Asset Allocation All That Glitters Case Study Solution in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine impact the demand for the publishing market. Together with it, the financial policies connected to the import of books impact the total organisation at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards checking out useful materials etc. China has the highest population on the planet with a high population growth, showing the increasing number of customers of the Global Asset Allocation All That Glitters Case Study Solution. The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques etc. Enhancement of science and innovation together with the rise of digital publishing could lower the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Global Asset Allocation All That Glitters Case Study Solution consists of the issues of environmental communities 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 harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to examine the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to draw in new entrants to the publishing industry. The presence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The substitute products for the released documents is the files provided in the digital libraries on certain websites. The changing consumer preferences towards digital learning increase the threat of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Global Asset Allocation All That Glitters Case Study Solution include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 market saturation, the purchasers needs high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive market 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 competitors of Global Asset Allocation All That Glitters Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the very same period, CIP publishes similar type of books. For a large period, CIP held the biggest market share, and still ranks second and third in various market sections, with a major focus on academic publications. CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of Global Asset Allocation All That Glitters Case Study Analysis quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as Global Asset Allocation All That Glitters Case Study Analysis and CIP. It is also one of 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
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides 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 organisation 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 internal and external environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the preferences are shifting towards digital publishing and the business require an immediate option to avoid the declining market growth. Therefore, intro of digital publishing could prove to be an instant service with low quantity of risk for the business. The business might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business should first collects the data related to the customer need, the potential markets, the government guidelines and the information related to the rivals presented in the market. After that, the business should decide one potential section for its initial offering. It ought to collect research study that how it might differentiate its digital publishing from the existing rivals' items. After all the steps above the business must opt for the preliminary offering. The business must go for the other markets if the initial offering shows a success. In this way the company would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing since 2008, showing a risk to the company's long term presence, however the situation can be managed by thinking about an advancement plan in the future. The business could consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entrance in the new markets.
