Groupworks Financial Corporation Case Study Solution and Analysis
Intro
Groupworks Financial Corporation Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information provider and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Issues
CMP has actually spent its 60 years journey smoothly, being a successful publishing home, however, the altering macro market trends and forces bring certain obstacles to the publishing industry in basic and Groupworks Financial Corporation Case Study Analysis in particular. These aspects include;
• Entrance of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the company could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Groupworks Financial Corporation Case Study Analysis has certain strengths that can be made use of to lower the risks, get rid of the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Groupworks Financial Corporation Case Study Solution in the publishing industry i.e. 60 years permits the business to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and supply high worth to its customers.
• Strong financial position allows the business to consider a number of development chances without any worry of raising fund externally.
Weak points
Along with the strengths, the company has certain weak points which could increase constraints for the business in implementing its development program. The weak points of Groupworks Financial Corporation Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular growth strategies to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is declining considering that 2008, impacting Groupworks Financial Corporation Case Study Solution as well, however the growth might be restored by availing particular opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its vast financial resources.
Hazards
The altering macro trends in the market and increasing competitors in the publishing market has actually positioned specific risks to Groupworks Financial Corporation Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of Groupworks Financial Corporation Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular techniques like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the market along with presence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
The company has a rather competitive financial performance. Due to lack of information, the financial ratios of CMP could not be computed. The overall monetary performance of the company might be examined by using the charts offered in 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, revealing that the annual demand of the products of Groupworks Financial Corporation Case Study Solution is growing and the company is rather efficient in attracting a a great deal of consumers at a possible cost.
In addition to it, the second graph which shows the yearly growth in the Groupworks Financial Corporation Case Study Solution total properties, reveals that the business is rather efficient in including value to its possessions through its profits. The development in properties shows that the overall worth of the company is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business using the given data could be the analysis concerning the circulation of overall revenues of the company. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sectors with a potential growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces affecting the performance of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. It could be said that the general political forces affecting CMP company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
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 overall GDP development of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Enhancement of science and innovation together with the increase of digital publishing might reduce the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Groupworks Financial Corporation Case Study Analysis includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be used to examine the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to draw in brand-new entrants to the publishing industry. The existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Threat of Substitution.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative products for the released documents is the documents presented in the virtual libraries on specific sites. The changing consumer choices towards digital learning increase the threat of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Groupworks Financial Corporation Case Study Analysis include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Groupworks Financial Corporation Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same duration, CIP publishes similar kind of books. For a big time period, CIP held the biggest market share, and still ranks second and 3rd in various market sectors, with a significant focus on academic publications. CIP serves 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 could wean the market share of Groupworks Financial Corporation Case Study Analysis easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as Groupworks Financial Corporation Case Study Help and CIP. It is likewise one of the prominent players in the publishing industry with a yearly overall incomes 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 chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose need of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the company need an instant solution to prevent the decreasing market development. The business could also consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company must initially gathers the information related to the customer demand, the potential markets, the government policies and the data related to the rivals provided in the market. If the initial offering proves a success, the business must go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing considering that 2008, revealing a danger to the company's long term presence, but the circumstance can be managed by considering an advancement plan in the future. The company might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
