Global Financial Strategy Project Case Study Solution and Analysis
Introduction
Global Financial Strategy Project Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; gathering information, processing information and communication services. Major business segments of the company include; books, regulars, consultancy and circulation. The company has a huge product portfolio and its significant products include books, periodicals, online media, exhibits, research study reports etc. Global Financial Strategy Project Case Study Help has actually ended up being a specialized details company and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
CMP has spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring particular difficulties to the publishing market in basic and Global Financial Strategy Project Case Study Help in specific. These elements include;
• Entryway of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The improvement of the macro markets have raised several 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 abilities of the business could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Global Financial Strategy Project Case Study Help has particular strengths that can be made use of to decrease the dangers, overcome the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Global Financial Strategy Project Case Study Help in the publishing market i.e. 60 years enables the company to offer high quality items at a lower expense utilizing its prior 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 monetary position allows the company to think about numerous development chances with no worry of raising fund externally.
Weak points
Together with the strengths, the business has certain weak points which could increase constraints for the business in implementing its development program. The weak points of Global Financial Strategy Project Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the business 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 must propose certain expansion plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing industry is decreasing since 2008, affecting Global Financial Strategy Project Case Study Help also, however the growth could be restored by availing particular chances provided in the market. The marketplace chances for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large financial resources.
Dangers
The changing macro trends in the market and increasing competitors in the publishing industry has actually positioned specific dangers to Global Financial Strategy Project Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Global Financial Strategy Project Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing particular strategies like aggressive promotion, quality products, etc.
• Entrance of new publishing firms in the industry along with presence of high competition increases the danger of losing the client base.
Financial Analysis.
The company has a rather competitive monetary performance. Due to lack of data, the monetary ratios of CMP might not be determined. However, the total monetary performance of the company might be examined by utilizing the charts given up the case Appendices. It might be evaluated from the Appendix III that the yearly total incomes of CMP during the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of Global Financial Strategy Project Case Study Help is growing and the business is rather efficient in attracting a a great deal of consumers at a possible price.
Along with it, the second chart which reveals the annual development in the Global Financial Strategy Project Case Study Analysis overall possessions, reveals that the business is quite efficient in adding value to its properties through its revenues. The growth in assets reveals that the total value of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered information might be the analysis relating to the distribution of overall earnings of the company. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sections with a possible development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the different 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 company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. It might be stated that the overall political forces impacting CMP organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading helpful products etc. China has the highest population worldwide with a high population growth, showing the increasing variety of customers of the Global Financial Strategy Project Case Study Solution. However, the consumer preferences are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and innovation along with the increase of digital publishing could decrease the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Global Financial Strategy Project Case Study Help consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to examine the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in brand-new entrants to the publishing market. The presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Danger of Substitution is high for the Chinese Publishing Market. The alternative products for the published documents is the documents provided in the digital libraries on specific websites. The altering customer preferences towards digital learning increase the hazard of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Global Financial Strategy Project Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general 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 presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Global Financial Strategy Project Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the same period, CIP releases similar kind of books. For a big time period, CIP held the largest market share, and still ranks second and third in different market sections, with a significant focus on educational publications. CIP functions as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Global Financial Strategy Project Case Study Analysis easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise one of the popular gamers in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand of its items 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 competitor analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the company require an immediate service to prevent the declining industry growth. Introduction of digital publishing might prove to be an instant option with low quantity of risk 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 product portfolio, the business should first gathers the information related to the customer need, the possible markets, the government regulations and the data related to the competitors presented in the market. If the preliminary offering proves a success, the company must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing given that 2008, revealing a danger to the company's long term existence, but the circumstance can be managed by thinking about a development plan in the future. The business could think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the new markets.
