Google Financial Analysis Project Case Study Solution and Analysis
Intro
Google Financial Analysis Project Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; gathering info, processing info and communication services. Significant business sections of the business include; books, regulars, consultancy and circulation. The company has a large product portfolio and its major items consist of books, regulars, online media, exhibitions, research study reports etc. Google Financial Analysis Project Case Study Analysis has become 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.
Important Problems
Although, Google Financial Analysis Project Case Study Solution has actually invested its 60 years journey smoothly, being an effective publishing house, however, the altering macro market trends and forces bring certain challenges to the publishing market in basic and CMP in particular. These aspects include;
• Entrance of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• 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 scenario? Do the long important experience, technical resources and the abilities of the business 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
Google Financial Analysis Project Case Study Help has specific strengths that can be made use of to minimize the threats, conquer the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Google Financial Analysis Project Case Study Analysis in the publishing industry i.e. 60 years allows the business to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and offer high value to its customers.
• Strong monetary position permits the company to think about numerous advancement opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has certain weaknesses which could increase constraints for the business in executing its development program. The weak points of Google Financial Analysis Project Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose certain expansion strategies to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing industry is declining because 2008, affecting Google Financial Analysis Project Case Study Help also, but the growth could be restored by availing certain chances presented in the market. The marketplace opportunities for CMP include;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge funds.
Dangers
The altering macro trends in the market and increasing competitors in the publishing market has actually postured specific dangers to Google Financial Analysis Project Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of Google Financial Analysis Project Case Study Help due to the consumer 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 gain a strong customer base by using specific strategies like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the market in addition to presence of high competition increases the risk of losing the customer base.
Financial Analysis.
The business has a rather competitive monetary efficiency. Due to absence of information, the financial ratios of CMP might not be computed. Nevertheless, the overall financial efficiency of the business could be examined by utilizing the graphs given up the case Appendices. It could be evaluated from the Appendix III that the yearly total revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of Google Financial Analysis Project Case Study Analysis is growing and the company is rather effective in attracting a a great deal of customers at a possible rate.
In addition to it, the 2nd graph which shows the annual development in the Google Financial Analysis Project Case Study Solution overall properties, reveals that the business is quite effective in including value to its possessions through its earnings. The growth in assets shows that the total worth of the firm is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the company utilizing the given information could be the analysis relating to the distribution of total incomes of the business. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation segments with a potential development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces affecting the efficiency of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the total political forces affecting Google Financial Analysis Project Case Study Analysis organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the Google Financial Analysis Project Case Study Solution in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the need for the publishing market. Along with it, the economic policies associated with the import of books impact the general company at CPM. China's economic conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques and so on. Enhancement of science and technology together with the rise of digital publishing might minimize the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Google Financial Analysis Project Case Study Analysis includes the issues of environmental neighborhoods 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 used while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be utilized to evaluate the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Alternative.
Danger of Substitution is high for the Chinese Publishing Industry. The substitute items for the released files is the documents presented in the digital libraries on particular sites. The changing customer choices towards digital learning increase the danger of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Google Financial Analysis Project Case Study Solution include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total 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 a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Google Financial Analysis Project Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same duration, CIP publishes similar type of books. For a big period, CIP held the biggest market share, and still ranks third and 2nd in numerous market sections, with a major concentrate on educational publications. CIP serves 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 might wean the market share of Google Financial Analysis Project Case Study Help quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also among the prominent players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers 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 segments to the new one can lead the company to lose need of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the company require an immediate option to avoid the declining market development. The business 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 must initially collects the data related to the customer demand, the possible markets, the government policies and the data related to the competitors presented in the market. After that, the business must choose one potential sector for its preliminary offering. It should collect research that how it could separate its digital publishing from the existing competitors' products. The actions above the business need to go for the preliminary offering. If the initial offering proves a success, the business needs to go for the other markets. In this way the business would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining since 2008, revealing a danger to the business's long term presence, however the situation can be controlled by thinking about a development plan in the future. The business could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the new markets.
