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Gold In 2011 Bubble Or Safe Haven Asset Case Analysis

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Gold In 2011 Bubble Or Safe Haven Asset Case Study Solution and Analysis


Introduction

Gold In 2011 Bubble Or Safe Haven Asset Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services including; gathering info, processing information and communication services. Significant business sections of the business consist of; books, periodicals, consultancy and circulation. The business has a large item portfolio and its significant items consist of books, regulars, online media, exhibitions, research reports etc. Gold In 2011 Bubble Or Safe Haven Asset Case Study Analysis has ended up being a specialized information supplier and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.

Critical Problems

Although, Gold In 2011 Bubble Or Safe Haven Asset Case Study Analysis has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring specific challenges to the publishing industry in general and CMP in specific. These aspects consist of;

• Entryway of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
Executive Summary
The transformation of the macro markets have raised numerous concerns 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 utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Gold In 2011 Bubble Or Safe Haven Asset Case Study Solution has certain strengths that can be made use of to lower the threats, get rid of the weakness and avail the chances. Strengths of CMP are offered as follows;

• The long term experience of Gold In 2011 Bubble Or Safe Haven Asset Case Study Help in the publishing industry i.e. 60 years allows the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its risk and supply high value to its consumers.
• Strong monetary position permits the company to consider numerous development chances without any fear of raising fund externally.

Weak points

Together with the strengths, the company has particular weak points which could increase restrictions for the business in implementing its advancement program. The weak points of Gold In 2011 Bubble Or Safe Haven Asset Case Study Analysis are provided as follows;

• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose particular growth strategies to avoid its dependence over the Chinese markets to attain long term growth.
Porter's 5 Forces Analysis
Opportunities

The growth of the publishing industry is decreasing since 2008, affecting Gold In 2011 Bubble Or Safe Haven Asset Case Study Analysis as well, however the development could be restored by availing particular opportunities provided in the market. The marketplace chances for CMP consist of;

• The business might likewise present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its huge financial resources.

Dangers

The changing macro trends in the market and increasing competitors in the publishing industry has postured specific dangers to Gold In 2011 Bubble Or Safe Haven Asset Case Study Help consisting of;( Gurel, 2017).

• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Gold In 2011 Bubble Or Safe Haven Asset Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using certain methods like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the industry together with presence of high competition increases the hazard of losing the customer base.

Financial Analysis.
Swot Analysis
Due to lack of information, the monetary ratios of CMP might not be determined. It could be analyzed from the Appendix III that the yearly total incomes of Gold In 2011 Bubble Or Safe Haven Asset Case Study Help during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the business is quite effective in attracting a big number of clients at a potential cost.

In addition to it, the 2nd chart which shows the yearly growth in the Gold In 2011 Bubble Or Safe Haven Asset Case Study Help total assets, reveals that the company is quite efficient in including worth to its possessions through its incomes. The development in properties shows that the overall worth of the company is also increasing with increasing the overall profits. (Unknown, 2013).

Another financial analysis of the company using the given information might be the analysis concerning the circulation of total profits of the company. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sections with a prospective development to accomplish its future development objective.

PESTEL Analysis

PESTEL analysis could be carried out to discover the various external forces affecting the performance of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).

Political.

As the publishing sector might have a substantial impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. It could be said that the total political forces impacting CMP organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.

Affordable.

Economic forces affecting the publishing sector in general and the Gold In 2011 Bubble Or Safe Haven Asset Case Study Analysis in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the demand for the publishing market. In addition to it, the economic policies related to the import of books impact the overall company at CPM. However, China's economic conditions are quite beneficial for CMP with high GDP growth and consumer income level.

Social and Demographical.

Social and demographical forces consist of the population growth, the customer's preferences towards checking out helpful materials and so on. China has the greatest population on the planet with a high population growth, revealing the increasing number of customers of the Gold In 2011 Bubble Or Safe Haven Asset Case Study Analysis. The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the changing consumer preferences.

Technological.

Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Enhancement of science and innovation along with the increase of digital publishing might minimize the demand for the CMP items, if certain actions would not be taken soon.

Environmental.
Vrio Analysis
Environmental forces impacting Gold In 2011 Bubble Or Safe Haven Asset Case Study Help consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing must not be hazardous for the environment.

Legal.

Legal guidelines for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.

Industry Analysis (Porter's 5 Forces Model).

Porter's 5 Forces Model might be utilized to analyze the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.

Danger of New Entrants.

Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing industry. The existence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.

Risk of Substitution.

Threat of Alternative is high for the Chinese Publishing Industry. The alternative items for the released files is the documents presented in the virtual libraries on particular websites. The altering customer choices towards digital learning increase the hazard of substitution for the market.

Competitive Competition.

Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the marketplace increasing the competition for CMP.

Bargaining Power of Provider.

The significant suppliers of the Gold In 2011 Bubble Or Safe Haven Asset Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.

Bargaining Power of Buyer.

Bargaining 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 market saturation, the buyers needs high quality documents at competitive prices.

Competitors Analysis.

CMP operates in a highly competitive industry with the presence 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 Gold In 2011 Bubble Or Safe Haven Asset Case Study Analysis include;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Market Press (CIP).

CIPis one of the close rivals of CMP. Established in the very same duration, CIP publishes comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks third and second in numerous market sectors, with a significant focus on educational publications. CIP functions as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Gold In 2011 Bubble Or Safe Haven Asset Case Study Help quickly in the current market scenario.

Posts and telecommunication Press (PTP).

Another close rival of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is likewise among the prominent players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.

Cons
Recommendations
• Usage of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.

Alernative-2: Present Digital Publishing

Pros

• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value 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 company to lose demand of its products in the market.

Suggestions

As the preferences are moving towards digital publishing and the company need an immediate service to prevent the declining market growth. The company could likewise 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 business should initially gathers the information related to the customer demand, the prospective markets, the federal government guidelines and the information related to the competitors presented in the market. If the initial offering shows a success, the business ought 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 given that 2008, showing a threat to the business's long term presence, however the situation can be managed by considering a development strategy in the future. The business might think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entryway in the new markets.

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