Good Capital And Better World Books A Better World For Investing Case Study Solution and Analysis
Good Capital And Better World Books A Better World For Investing Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized information provider and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Although, Good Capital And Better World Books A Better World For Investing Case Study Analysis has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing market in general and CMP in specific. These elements include;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The improvement of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the company could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Good Capital And Better World Books A Better World For Investing Case Study Analysis has certain strengths that can be utilized to lower the threats, conquer the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Good Capital And Better World Books A Better World For Investing Case Study Solution in the publishing market i.e. 60 years enables the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and supply high value to its consumers.
• Strong financial position allows the company to think about numerous advancement opportunities with no worry of raising fund externally.
Along with the strengths, the business has specific weak points which could increase constraints for the business in implementing its advancement program. The weaknesses of Good Capital And Better World Books A Better World For Investing Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific growth plans to avoid its reliance over the Chinese markets to attain long term growth.
Although, the development of the publishing industry is declining considering that 2008, affecting Good Capital And Better World Books A Better World For Investing Case Study Help as well, but the development might be restored by availing particular opportunities presented in the market. The market opportunities for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large funds.
The altering macro patterns in the market and increasing competition in the publishing market has posed particular hazards to Good Capital And Better World Books A Better World For Investing Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Good Capital And Better World Books A Better World For Investing Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing particular methods like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the market along with existence of high competitors increases the threat of losing the client base.
The business has a rather competitive financial efficiency. Due to lack of data, the financial ratios of CMP could not be computed. The total financial performance of the business might be evaluated by using the charts provided in the case Appendices. It could be analyzed from the Appendix III that the yearly total revenues of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Good Capital And Better World Books A Better World For Investing Case Study Solution is growing and the company is rather effective in bring in a large number of clients at a potential rate.
Along with it, the 2nd graph which shows the annual development in the Good Capital And Better World Books A Better World For Investing Case Study Analysis total assets, shows that the company is quite effective in adding value to its properties through its profits. The growth in possessions shows that the total value of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company utilizing the given information could be the analysis concerning the circulation of overall incomes of the business. Huge part of the earnings 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 business sectors with a potential development to achieve its future advancement objective.
PESTEL analysis could be conducted to find out the various 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 company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a considerable effect on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the overall political forces impacting Good Capital And Better World Books A Better World For Investing Case Study Help company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Good Capital And Better World Books A Better World For Investing 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 financial policies connected to the import of books impact the overall business at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing consumer choices.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and innovation together with the rise of digital publishing might reduce the need for the CMP items, if specific actions would not be taken soon.
Ecological forces impacting Good Capital And Better World Books A Better World For Investing Case Study Analysis includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing must not be harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be used to analyze the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Threat of Alternative is high for the Chinese Publishing Market. The replacement products for the released files is the files presented in the digital libraries on specific websites. The changing consumer choices towards digital knowing increase the risk of replacement for the market.
Competitive competition 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 competition for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Good Capital And Better World Books A Better World For Investing Case Study Help include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 purchasers requires high quality documents at competitive prices.
CMP runs in a highly competitive market with the presence 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 Good Capital And Better World Books A Better World For Investing Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it could 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 situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Good Capital And Better World Books A Better World For Investing Case Study Analysis and CIP. It is likewise one of the popular gamers in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
• 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 need of its items in the market.
With the deep analysis of the internal and external environment of the business together with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the choices are shifting towards digital publishing and the business require an instant service to avoid the declining market growth. For that reason, intro of digital publishing could show to be an instant option with low amount of risk for the business. Nevertheless, the business could also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business must initially gathers the data connected to the consumer need, the possible markets, the federal government guidelines and the information related to the competitors provided in the market. After that, the company ought to choose one possible segment for its initial offering. It should collect research study that how it might distinguish its digital publishing from the existing rivals' products. The actions above the business must go for the preliminary offering. If the initial offering proves a success, the business should go for the other markets. In this way the business would have the ability to implement its digital publishing program.
Although, the growth of the publishing industry is decreasing since 2008, revealing a risk to the company's long term existence, but the scenario can be managed by thinking about an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.