Goldman Sachs Anchoring Standards After The Financial Crises Case Study Solution and Analysis
Introduction
Goldman Sachs Anchoring Standards After The Financial Crises Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information supplier and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, Goldman Sachs Anchoring Standards After The Financial Crises Case Study Analysis has spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring particular obstacles to the publishing industry in general and CMP in specific. These aspects consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The change 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 capabilities of the company could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Goldman Sachs Anchoring Standards After The Financial Crises Case Study Solution has specific strengths that can be made use of to decrease the threats, conquer the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Goldman Sachs Anchoring Standards After The Financial Crises Case Study Help in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and supply high value to its clients.
• Strong monetary position permits the business to consider numerous advancement opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the business has specific weaknesses which might increase constraints for the company in executing its advancement program. The weaknesses of Goldman Sachs Anchoring Standards After The Financial Crises Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific growth plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is declining since 2008, impacting Goldman Sachs Anchoring Standards After The Financial Crises Case Study Solution as well, however the development might be revived by availing certain opportunities presented in the market. The marketplace opportunities for CMP include;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge financial resources.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has presented particular dangers to Goldman Sachs Anchoring Standards After The Financial Crises Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of Goldman Sachs Anchoring Standards After The Financial Crises Case Study Help due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using particular methods like aggressive promo, quality items, and so on
• Entrance of new publishing companies in the industry along with presence of high competitors increases the danger of losing the customer base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP might not be determined. It could be evaluated from the Appendix III that the annual total incomes of Goldman Sachs Anchoring Standards After The Financial Crises Case Study Solution during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the business is quite efficient in drawing in a large number of customers at a possible rate.
In addition to it, the 2nd graph which shows the annual development in the Goldman Sachs Anchoring Standards After The Financial Crises Case Study Solution overall assets, shows that the company is quite effective in including value to its assets through its revenues. The growth in possessions reveals that the overall value of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company using the provided data could be the analysis concerning the distribution of total incomes of the company. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other service sections with a potential growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the numerous external forces affecting the efficiency of the business and the recent patterns in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the state of mind of individuals 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 Celebration of China. For that reason, it could be said that the total political forces impacting Goldman Sachs Anchoring Standards After The Financial Crises Case Study Solution organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards checking out helpful materials etc. China has the greatest population in the world with a high population growth, revealing the increasing variety of consumers of the Goldman Sachs Anchoring Standards After The Financial Crises Case Study Help. However, the consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Improvement of science and technology along with the increase of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Goldman Sachs Anchoring Standards After The Financial Crises Case Study Solution consists of the concerns of ecological communities 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 used while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The ordinance prohibits 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 evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to draw in new entrants to the publishing industry. The presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Hazard of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The substitute items for the published files is the files provided in the virtual libraries on particular sites. The changing customer choices towards digital knowing increase the risk of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Goldman Sachs Anchoring Standards After The Financial Crises Case Study Help include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser 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 purchasers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry 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 competitors of Goldman Sachs Anchoring Standards After The Financial Crises Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard for CMP as it might 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 scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same period as Goldman Sachs Anchoring Standards After The Financial Crises Case Study Analysis and CIP. It is also one of the prominent players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the company need an instant option to avoid the declining industry growth. Introduction of digital publishing might prove to be an instant solution with low quantity of risk for the company. The company could likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business should first collects the information associated with the consumer demand, the prospective markets, the federal government policies and the data connected to the competitors presented in the market. After that, the company needs to choose one prospective segment for its initial offering. It ought to collect research study that how it could differentiate its digital publishing from the existing competitors' items. The actions above the company must go for the initial offering. If the initial offering proves a success, the company should opt for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing given that 2008, revealing a hazard to the business's long term existence, but the circumstance can be managed by thinking about an advancement plan in the future. The business could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entryway in the new markets.
