Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Solution and Analysis
Intro
Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details service provider and a big extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
Although, Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Solution has actually spent its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring specific obstacles to the publishing industry in general and CMP in particular. These aspects include;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised numerous 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 made use of 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
Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Help has specific strengths that can be used to minimize the threats, get rid of the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Analysis in the publishing industry i.e. 60 years permits the business to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and supply high worth to its consumers.
• Strong financial position allows the business to think about numerous advancement opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has certain weaknesses which might increase restrictions for the company in executing its advancement program. The weak points of Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain growth plans to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, impacting Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Solution also, however the development might be revived by availing particular chances presented in the market. The marketplace opportunities for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large financial resources.
Hazards
The changing macro trends in the market and increasing competitors in the publishing market has postured specific hazards to Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using specific methods like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the market along with existence of high competitors increases the hazard of losing the customer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP could not be computed. It might be analyzed from the Appendix III that the yearly overall profits of Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Analysis during the duration 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 effective in attracting a big number of consumers at a possible price.
In addition to it, the 2nd chart which reveals the yearly growth in the Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Help total possessions, reveals that the business is rather effective in adding value to its properties through its incomes. The development in properties shows that the overall worth of the company is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the company utilizing the given information might be the analysis regarding the circulation of overall earnings of the business. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sections with a potential growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces impacting the performance of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. It might be said that the general political forces affecting CMP service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading informative products and so on. China has the highest population in the world with a high population growth, showing the increasing number of customers of the Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Help. The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies and so on. Enhancement of science and innovation together with the increase of digital publishing could lower the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Solution includes the issues of ecological communities over the usage 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 should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be utilized to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing industry. The presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Alternative.
Threat of Replacement is high for the Chinese Publishing Market. The substitute items for the published files is the files presented in the digital libraries on certain websites. The altering consumer preferences towards digital learning increase the danger of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Help 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 exact same duration, CIP releases comparable type of books. For a large period, CIP held the largest market share, and still ranks second and third in numerous market sections, with a major concentrate on academic publications. CIP functions as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Solution quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is likewise among the popular gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 organisation sectors to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the company need an instant solution to prevent the decreasing market growth. For that reason, introduction of digital publishing might prove to be an immediate service with low quantity of risk for the company. Nevertheless, the company might also consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company must initially gathers the information related to the customer demand, the potential markets, the federal government policies and the data related to the rivals provided in the market. If the initial offering shows a success, the business needs to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is declining because 2008, showing a risk to the company's long term presence, however the circumstance can be managed by thinking about an advancement plan in the future. The company could think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.
