Goldman Sachs Bank For All Seasons A Case Study Solution and Analysis
Intro
Goldman Sachs Bank For All Seasons A Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized info service provider and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
CMP has actually spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing market in basic and Goldman Sachs Bank For All Seasons A Case Study Solution in particular. These elements include;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• 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 capabilities of the company could be used 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
Goldman Sachs Bank For All Seasons A Case Study Solution has certain strengths that can be made use of to reduce the risks, conquer the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Goldman Sachs Bank For All Seasons A Case Study Analysis in the publishing market i.e. 60 years enables the business to supply high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities created by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and offer high worth to its consumers.
• Strong monetary position permits the company to consider a number of development opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the company has specific weak points which could increase constraints for the company in executing its development program. The weak points of Goldman Sachs Bank For All Seasons A Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular growth strategies to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is decreasing given that 2008, impacting Goldman Sachs Bank For All Seasons A Case Study Solution as well, however the development might be revived by availing certain opportunities provided in the market. The market opportunities for CMP consist of;
• The company might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its large funds.
Threats
The altering macro patterns in the market and increasing competitors in the publishing market has actually postured particular dangers to Goldman Sachs Bank For All Seasons A Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Goldman Sachs Bank For All Seasons A Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing specific methods like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing firms in the industry in addition to existence of high competition increases the risk of losing the customer base.
Monetary Analysis.
The company has a rather competitive monetary performance. Due to lack of data, the monetary ratios of CMP could not be determined. Nevertheless, the general monetary efficiency of the company could be analyzed by using the charts given in the case Appendices. It might be analyzed from the Appendix III that the yearly overall profits of CMP during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the products of Goldman Sachs Bank For All Seasons A Case Study Analysis is growing and the business is rather effective in drawing in a a great deal of clients at a possible cost.
Together with it, the 2nd graph which reveals the yearly development in the Goldman Sachs Bank For All Seasons A Case Study Analysis overall possessions, shows that the business is rather efficient in including value to its properties through its profits. The growth in assets reveals that the overall worth of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered data might be the analysis relating to the distribution of total profits of the business. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company segments with a possible growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces impacting the efficiency of the business and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the overall political forces impacting Goldman Sachs Bank For All Seasons A Case Study Analysis business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards reading helpful materials and so on. China has the greatest population worldwide with a high population development, showing the increasing variety of consumers of the Goldman Sachs Bank For All Seasons A Case Study Help. However, the consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to meet the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Improvement of science and innovation together with the increase of digital publishing could lower the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Goldman Sachs Bank For All Seasons A Case Study Solution includes the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to examine the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to attract brand-new entrants to the publishing market. The presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Risk of Substitution 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 altering consumer preferences towards digital learning increase the threat of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Goldman Sachs Bank For All Seasons A Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 requires high quality files at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of large number of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Goldman Sachs Bank For All Seasons A Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the same duration, CIP publishes comparable kind of books. For a large period, CIP held the largest market share, and still ranks 3rd and 2nd in numerous market sections, with a major focus on academic publications. CIP acts as a risk 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 market share of Goldman Sachs Bank For All Seasons A Case Study Solution quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is also among the popular gamers in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the preferences are moving towards digital publishing and the business need an instant service to prevent the declining industry growth. Therefore, intro of digital publishing could show to be an instant solution with low amount of risk for the company. The company might also consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business should first collects the data related to the consumer demand, the prospective markets, the government guidelines and the data related to the competitors provided in the market. If the preliminary offering proves a success, the company must go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining considering that 2008, revealing a risk to the business's long term presence, but the situation can be managed by considering a development plan in the future. The business could consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
