Global Financial Crises And The Future Of Securitization Case Study Solution and Analysis
Global Financial Crises And The Future Of Securitization Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details provider and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Although, Global Financial Crises And The Future Of Securitization Case Study Solution has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring specific challenges to the publishing industry in general and CMP in particular. These factors consist of;
• Entryway of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The improvement of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the company could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Global Financial Crises And The Future Of Securitization Case Study Analysis has particular strengths that can be made use of to lower the risks, get rid of the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Global Financial Crises And The Future Of Securitization Case Study Solution in the publishing market i.e. 60 years permits the business to offer high quality items at a lower cost using its prior experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its danger and provide high worth to its consumers.
• Strong financial position enables the company to think about numerous advancement chances without any fear of raising fund externally.
In addition to the strengths, the company has specific weak points which might increase restrictions for the business in implementing its development program. The weak points of Global Financial Crises And The Future Of Securitization Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific expansion strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Although, the development of the publishing industry is decreasing because 2008, affecting Global Financial Crises And The Future Of Securitization Case Study Analysis as well, but the growth might be restored by availing certain chances presented in the market. The market opportunities for CMP consist of;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast financial resources.
The altering macro trends in the market and increasing competition in the publishing market has positioned particular threats to Global Financial Crises And The Future Of Securitization Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Global Financial Crises And The Future Of Securitization Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing certain strategies like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the industry together with existence of high competitors increases the hazard of losing the client base.
Due to lack of information, the financial ratios of CMP might not be determined. It might be evaluated from the Appendix III that the yearly total revenues of Global Financial Crises And The Future Of Securitization Case Study Analysis during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the business is quite efficient in attracting a big number of consumers at a prospective price.
In addition to it, the second chart which reveals the annual growth in the Global Financial Crises And The Future Of Securitization Case Study Help total assets, shows that the company is quite efficient in including worth to its properties through its incomes. The development in possessions reveals that the total value of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company using the provided data might be the analysis regarding the distribution of total profits of the company. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sectors with a prospective growth to attain its future advancement objective.
PESTEL analysis could be carried out to discover the numerous external forces impacting the performance of the business and the recent patterns in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a considerable impact on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. It could be stated that the general political forces impacting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Global Financial Crises And The Future Of Securitization Case Study Analysis in specific includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the demand for the publishing market. Along with it, the economic policies connected to the import of books affect the overall organisation at CPM. However, China's financial conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out useful products and so on. China has the greatest population worldwide with a high population growth, showing the increasing number of customers of the Global Financial Crises And The Future Of Securitization Case Study Solution. The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer choices.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and technology along with the rise of digital publishing might minimize the need for the CMP items, if certain actions would not be taken soon.
Ecological forces impacting Global Financial Crises And The Future Of Securitization Case Study Help consists of the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to analyze the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is offered 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 attract new entrants to the publishing industry. The existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Hazard of Replacement is high for the Chinese Publishing Market. The substitute products for the published files is the files presented in the digital libraries on certain websites. The altering consumer preferences towards digital knowing increase the threat of substitution for the industry.
Competitive competition in the publishing industry is high. The presence of large number of customers 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 entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Global Financial Crises And The Future Of Securitization Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling 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 needs high quality documents at competitive prices.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Global Financial Crises And The Future Of Securitization Case Study Help include;.
• Chemical Market 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 could wean the market share of CMP easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Global Financial Crises And The Future Of Securitization Case Study Help and CIP. It is likewise one of the popular gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Usage of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the company to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the company together with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business need an immediate option to prevent the declining market development. Introduction of digital publishing could show to be an immediate option with low amount of risk for the company. However, the business could also think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company should first collects the information connected to the customer demand, the possible markets, the federal government policies and the data related to the rivals provided in the market. After that, the company needs to decide one possible section for its preliminary offering. It must collect research that how it might distinguish its digital publishing from the existing rivals' items. After all the actions above the company need to opt for the preliminary offering. If the preliminary offering shows a success, the business needs to opt for the other markets. In this way the business would have the ability to execute its digital publishing program.
The development of the publishing market is decreasing given that 2008, showing a threat to the company's long term presence, but the circumstance can be managed by thinking about an advancement plan in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.