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Golden Opportunity Commercial Real Estate Valuation Case Analysis

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Golden Opportunity Commercial Real Estate Valuation Case Study Solution and Analysis


Introduction

Golden Opportunity Commercial Real Estate Valuation Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting details, processing info and interaction services. Significant business sectors of the business consist of; books, regulars, consultancy and circulation. The company has a large product portfolio and its significant items include books, regulars, online media, exhibitions, research reports and so on. Golden Opportunity Commercial Real Estate Valuation Case Study Solution has ended up being a specialized information supplier and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.

Crucial Issues

Although, Golden Opportunity Commercial Real Estate Valuation Case Study Solution has spent its 60 years journey smoothly, being an effective publishing home, however, the altering macro market trends and forces bring specific challenges to the publishing industry in basic and CMP in specific. These elements include;

• Entryway of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
Executive Summary
The improvement of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the business could be made use of 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


Golden Opportunity Commercial Real Estate Valuation Case Study Analysis has certain strengths that can be utilized to minimize the dangers, get rid of the weakness and obtain the opportunities. Strengths of CMP are given as follows;

• The long term experience of Golden Opportunity Commercial Real Estate Valuation Case Study Analysis in the publishing market i.e. 60 years enables the company to provide high quality items at a lower cost using its previous experiences.
• The technical resources and abilities produced by its successful journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and offer high worth to its consumers.
• Strong financial position permits the business to think about a number of development chances with no fear of raising fund externally.

Weaknesses

Along with the strengths, the company has particular weak points which could increase restraints for the company in executing its advancement program. The weaknesses of Golden Opportunity Commercial Real Estate Valuation Case Study Analysis are offered as follows;

• Despite of being a science and technology publishing firm, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific growth strategies to prevent its reliance over the Chinese markets to achieve long term development.
Porter's 5 Forces Analysis
Opportunities

The development of the publishing market is declining considering that 2008, affecting Golden Opportunity Commercial Real Estate Valuation Case Study Solution as well, but the growth could be restored by availing particular chances presented in the market. The market chances for CMP consist of;

• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its huge funds.

Dangers

The altering macro patterns in the market and increasing competition in the publishing market has actually presented particular hazards to Golden Opportunity Commercial Real Estate Valuation Case Study Analysis consisting of;( Gurel, 2017).

• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Golden Opportunity Commercial Real Estate Valuation Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using certain techniques like aggressive promo, quality products, and so on
• Entrance of new publishing companies in the industry together with presence of high competitors increases the risk of losing the customer base.

Monetary Analysis.
Swot Analysis
The business has a quite competitive financial efficiency. Due to lack of data, the monetary ratios of CMP might not be calculated. However, the total financial performance of the company could be evaluated by using the graphs given in the case Appendices. It might be evaluated from the Appendix III that the annual overall revenues of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of Golden Opportunity Commercial Real Estate Valuation Case Study Solution is growing and the company is quite efficient in drawing in a a great deal of customers at a prospective cost.

In addition to it, the second graph which reveals the annual development in the Golden Opportunity Commercial Real Estate Valuation Case Study Analysis overall assets, shows that the company is rather effective in adding value to its properties through its profits. The growth in assets shows that the total worth of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).

Another financial analysis of the business using the given information could be the analysis regarding the circulation of overall profits of the company. Major 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 service segments with a prospective development to achieve its future advancement objective.

PESTEL Analysis

PESTEL analysis could be conducted to learn the numerous external forces impacting the performance of the company and the current patterns 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 influence on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. It could be stated that the overall political forces impacting CMP organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.

Economical.

Economic forces impacting the publishing sector in general and the CMP in particular 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 need for the publishing market.

Social and Demographical.

Social and demographical forces consist of the population growth, the consumer's choices towards reading helpful products etc. China has the greatest population on the planet with a high population growth, revealing the increasing number of consumers of the Golden Opportunity Commercial Real Estate Valuation Case Study Help. However, the customer choices are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the changing consumer choices.

Technological.

Technological forces impacting the CMP include the technological improvement in the reading techniques and so on. Improvement of science and technology in addition to the increase of digital publishing could lower the need for the CMP products, if certain actions would not be taken quickly.

Environmental.
Vrio Analysis
Ecological forces impacting Golden Opportunity Commercial Real Estate Valuation Case Study Solution includes the concerns of ecological 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 utilized while publishing should not be harmful for the environment.

Legal.

Legal regulations 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 needs the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.

Market Analysis (Porter's Five Forces Design).

Porter's 5 Forces Model could be utilized to examine the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.

Hazard of New Entrants.

Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract new entrants to the publishing industry. The existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.

Danger of Substitution.

Threat of Alternative is high for the Chinese Publishing Industry. The alternative products for the published documents is the files provided in the virtual libraries on certain sites. The changing customer preferences towards digital knowing increase the risk of substitution for the industry.

Competitive Rivalry.

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

Bargaining Power of Provider.

The significant providers of the Golden Opportunity Commercial Real Estate Valuation Case Study Solution include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.

Bargaining Power of Buyer.

Negotiating power of buyer 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 requires high quality documents at competitive costs.

Competitors Analysis.

CMP runs in an extremely competitive market with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Golden Opportunity Commercial Real Estate Valuation Case Study Solution include;.

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

Chemical Industry Press (CIP).

CIPis among the close rivals of CMP. Founded in the exact same period, CIP releases comparable type of books. For a big time period, CIP held the largest market share, and still ranks second and third in different market sectors, with a major concentrate on academic publications. CIP serves as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the marketplace share of Golden Opportunity Commercial Real Estate Valuation Case Study Solution quickly in the present market scenario.

Posts and telecommunication Press (PTP).

It was also established in the same period as Golden Opportunity Commercial Real Estate Valuation Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing industry with an annual total profits of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.

Cons
Recommendations
• Use of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.

Cons

• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose demand of its products in the market.

Recommendations

As the choices are shifting towards digital publishing and the company need an immediate option to avoid the declining market growth. The company might likewise consider the expansion program after the success of its digital publishing program.

Implementation

In order to present digital publishing in its item portfolio, the company should first collects the data connected to the consumer need, the possible markets, the federal government guidelines and the data related to the rivals provided in the market. After that, the business must choose one prospective segment for its preliminary offering. It must gather research study that how it could differentiate its digital publishing from the existing competitors' items. After all the actions above the business ought to go for the initial offering. The business needs to go for the other markets if the initial offering shows a success. In this way the company would have the ability to execute its digital publishing program.

Conclusion

Although, the development of the publishing industry is declining given that 2008, showing a threat to the business's long term existence, however the scenario can be managed by thinking about a development strategy in the future. The business might consider introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entrance in the new markets.

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