Golden Opportunity Commercial Real Estate Valuation Case Study Solution and Analysis
Intro
Golden Opportunity Commercial Real Estate Valuation Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting information, processing information and communication services. Significant business segments of the business include; books, regulars, consultancy and distribution. The company has a large product portfolio and its significant products include books, regulars, online media, exhibits, research reports etc. Golden Opportunity Commercial Real Estate Valuation Case Study Help has actually become a specialized info provider and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Golden Opportunity Commercial Real Estate Valuation Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing market in basic and CMP in specific. These aspects consist of;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised numerous concerns 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 company could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Golden Opportunity Commercial Real Estate Valuation Case Study Solution has particular strengths that can be made use of to lower the dangers, get rid of the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Golden Opportunity Commercial Real Estate Valuation Case Study Analysis in the publishing market i.e. 60 years allows the company to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and offer high worth to its clients.
• Strong monetary position enables the business to think about several development opportunities with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weak points which might increase constraints for the business in implementing its development program. The weak points of Golden Opportunity Commercial Real Estate Valuation Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, 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 development. It ought to propose particular growth plans to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing industry is decreasing considering that 2008, impacting Golden Opportunity Commercial Real Estate Valuation Case Study Help as well, however the development might be revived by availing certain opportunities provided in the market. The marketplace chances for CMP consist of;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its large funds.
Risks
The changing macro patterns in the market and increasing competitors in the publishing industry has postured certain risks to Golden Opportunity Commercial Real Estate Valuation Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Golden Opportunity Commercial Real Estate Valuation Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using specific strategies like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing companies in the market together with existence of high competition increases the risk of losing the client base.
Monetary Analysis.
The business has a rather competitive monetary efficiency. Due to lack of data, the financial ratios of CMP could not be determined. However, the total monetary efficiency of the company could be analyzed by utilizing the charts given in the case Appendices. It might be analyzed from the Appendix III that the annual total earnings of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of Golden Opportunity Commercial Real Estate Valuation Case Study Help is growing and the business is quite efficient in bring in a large number of customers at a prospective cost.
Along with it, the second chart which reveals the yearly development in the Golden Opportunity Commercial Real Estate Valuation Case Study Help overall properties, shows that the company is rather efficient in including worth to its properties through its profits. The growth in possessions shows that the overall worth of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given data might be the analysis concerning the distribution of overall profits of the business. 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 business might move towards other organisation segments with a potential growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the various external forces impacting the performance of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. It might be stated that the general political forces impacting CMP business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the Golden Opportunity Commercial Real Estate Valuation Case Study Help in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the demand for the publishing market. In addition to it, the financial policies related to the import of books impact the general service at CPM. However, China's economic conditions are rather favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies and so on. Enhancement of science and technology together with the rise of digital publishing might reduce the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Golden Opportunity Commercial Real Estate Valuation Case Study Analysis consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to attract new entrants to the publishing market. Nevertheless, the existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Threat of Replacement is high for the Chinese Publishing Market. The alternative items for the released documents is the files presented in the virtual libraries on particular websites. The altering customer preferences towards digital knowing increase the risk of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence 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, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Golden Opportunity Commercial Real Estate Valuation Case Study Analysis include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of large number of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Golden Opportunity Commercial Real Estate Valuation Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
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 might wean the market share of CMP easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Golden Opportunity Commercial Real Estate Valuation Case Study Help and CIP. It is also one of the prominent gamers in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the company require an instant service to prevent the declining industry development. For that reason, intro of digital publishing could prove to be an instant service with low quantity of threat for the company. The company might likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company ought to first collects the information related to the customer need, the possible markets, the federal government regulations and the data related to the rivals provided in the market. If the preliminary offering proves a success, the company should go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing because 2008, showing a danger to the company's long term presence, however the scenario can be managed by considering an advancement plan in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the risk of failure for entrance in the new markets.
