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Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Solution

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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 Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services including; gathering information, processing details and communication services. Major business segments of the business include; books, regulars, consultancy and circulation. The company has a large product portfolio and its significant items consist of books, periodicals, online media, exhibits, research study reports etc. Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Analysis has actually become a specialized info provider and a large extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.

Vital Problems

Although, Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Help has actually invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring specific difficulties to the publishing industry in general and CMP in particular. These elements consist of;

• Entryway of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
Executive Summary
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 circumstance? Do the long important experience, technical resources and the capabilities of the business could be used to pursue the future development unceasingly? How could the business 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 Solution has certain strengths that can be used to decrease the threats, overcome the weakness and avail the opportunities. Strengths of CMP are given 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 allows the company to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its danger and offer high value to its clients.
• Strong monetary position enables the company to consider a number of advancement opportunities without any worry of raising fund externally.

Weak points

In addition to the strengths, the company has specific weaknesses which might increase restraints for the business in implementing its development program. The weaknesses of Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Help are given as follows;

• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular expansion strategies to prevent its dependence over the Chinese markets to achieve long term development.
Porter's 5 Forces Analysis
Opportunities

Although, the growth of the publishing market is decreasing considering that 2008, affecting Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Analysis as well, however the growth might be revived by availing certain opportunities presented in the market. The marketplace chances for CMP consist of;

• The company might likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its huge financial resources.

Risks

The altering macro patterns in the market and increasing competition in the publishing market has presented certain risks to Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Analysis including;( Gurel, 2017).

• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing certain techniques like aggressive promo, quality products, and so on
• Entryway of new publishing companies in the market along with presence of high competitors increases the danger of losing the client base.

Monetary Analysis.
Swot Analysis
The company has a rather competitive monetary performance. Due to lack of information, the financial ratios of CMP might not be calculated. However, the overall monetary efficiency of the company might be examined by using the graphs given up the case Appendices. It could be analyzed from the Appendix III that the yearly overall revenues of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Analysis is growing and the company is rather efficient in drawing in a a great deal of clients at a prospective price.

Along with it, the 2nd chart which reveals the annual development in the Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Solution total properties, shows that the business is quite efficient in adding worth to its properties through its incomes. The development in possessions reveals that the overall value of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).

Another financial analysis of the company using the given information might be the analysis regarding the distribution of overall incomes of the business. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation segments with a possible growth to achieve its future development goal.

PESTEL Analysis

PESTEL analysis might be performed to find out the numerous external forces impacting the efficiency of the company and the recent trends 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 could have a substantial effect on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the total political forces impacting Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Analysis service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.

Affordable.

Financial forces impacting the publishing sector in general and the Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Solution in particular includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces combine impact the need for the publishing market. In addition to it, the economic policies associated with the import of books impact the general business at CPM. However, China's financial conditions are quite beneficial for CMP with high GDP development and consumer income level.

Social and Demographical.

The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer preferences.

Technological.

Technological forces impacting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and innovation together with the rise of digital publishing could lower the demand for the CMP items, if particular actions would not be taken quickly.

Environmental.
Vrio Analysis
Ecological forces impacting Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Analysis includes the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing must not be harmful for the environment.

Legal.

Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.

Market Analysis (Porter's Five Forces Model).

Porter's 5 Forces Design could be utilized to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.

Risk of New Entrants.

Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in new entrants to the publishing industry. The presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.

Danger of Alternative.

Hazard of Substitution is high for the Chinese Publishing Industry. The alternative products for the published files is the files provided in the virtual libraries on specific websites. The altering customer preferences towards digital learning increase the risk of alternative for the industry.

Competitive Rivalry.

Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.

Bargaining Power of Supplier.

The significant providers of the Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Help include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.

Bargaining Power of Purchaser.

Negotiating power of purchaser 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 purchasers requires high quality files at competitive prices.

Competitors Analysis.

CMP runs in a highly competitive industry with the existence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Ho Chi Minh Securities Corporation Seeking Competitive Advantage In Vietnams Evolving Financial Sector Case Study Solution include;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Industry Press (CIP).

CIP acts as a threat for CMP as it might 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 existing market circumstance.

Posts and telecommunication Press (PTP).

Another close competitor of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is likewise one of the popular gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.

Cons

• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose need of its products in the market.

Recommendations

As the preferences are moving towards digital publishing and the company need an instant service to avoid the declining industry development. The company might likewise think about the expansion program after the success of its digital publishing program.

Implementation

In order to introduce digital publishing in its product portfolio, the business must initially collects the data associated with the consumer need, the prospective markets, the government policies and the data connected to the competitors presented in the market. After that, the business should decide one potential sector for its initial offering. It ought to collect research that how it might separate its digital publishing from the existing competitors' products. After all the actions above the business ought to choose the preliminary offering. If the preliminary offering shows a success, the company needs to go for the other markets. In this way the business would have the ability to execute its digital publishing program.

Conclusion

Although, the growth of the publishing industry is decreasing since 2008, showing a threat to the business's long term existence, but the circumstance can be managed by thinking about an advancement plan in the future. The company could consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.

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