How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Solution and Analysis
How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info service provider and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Although, How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Analysis has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market trends and forces bring specific obstacles to the publishing industry in basic and CMP in particular. These elements include;
• Entrance of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The change of the macro markets have raised several concerns 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 abilities of the business could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Analysis has certain strengths that can be used to decrease the hazards, get rid of the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Analysis in the publishing market i.e. 60 years enables the business to provide high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and provide high value to its clients.
• Strong monetary position allows the business to consider numerous development chances without any worry of raising fund externally.
Together with the strengths, the business has particular weaknesses which could increase restraints for the company in implementing its advancement program. The weak points of How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain growth plans to avoid its dependence over the Chinese markets to accomplish long term development.
Although, the development of the publishing industry is declining since 2008, impacting How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Help too, but the growth might be revived by availing specific chances provided in the market. The marketplace chances for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge financial resources.
The changing macro patterns in the market and increasing competition in the publishing industry has positioned certain hazards to How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing specific methods like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the market together with presence of high competitors increases the risk of losing the consumer base.
Due to absence of information, the financial ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the annual overall revenues of How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Solution during the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the business is quite effective in attracting a large number of consumers at a prospective rate.
Together with it, the second graph which shows the yearly growth in the How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Help overall possessions, reveals that the business is quite effective in adding value to its possessions through its incomes. The growth in possessions reveals that the overall value of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company using the provided data could be the analysis regarding the circulation of overall profits of the business. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sections with a prospective development to attain its future advancement goal.
PESTEL analysis could be conducted to find out the numerous external forces affecting the efficiency of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a considerable influence on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. It might be stated that the general political forces impacting CMP service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Solution in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the need for the publishing market. Along with it, the financial policies related to the import of books affect the overall company at CPM. Nevertheless, China's financial conditions are rather favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards reading useful materials etc. China has the greatest population worldwide with a high population development, showing the increasing variety of customers of the How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Analysis. However, the consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the altering customer choices.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and innovation together with the increase of digital publishing might minimize the need for the CMP items, if certain actions would not be taken quickly.
Environmental forces affecting How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Analysis includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing needs to not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be used to analyze the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in brand-new entrants to the publishing industry. However, the existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to enter in the marketplace.
Hazard of Alternative.
Threat of Substitution is high for the Chinese Publishing Industry. The replacement items for the released files is the documents provided in the digital libraries on specific sites. The changing consumer preferences towards digital knowing increase the hazard of replacement for the market.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Solution include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive costs.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same duration, CIP releases comparable kind of books. For a large time period, CIP held the largest market share, and still ranks third and 2nd in numerous market sectors, with a significant focus on academic publications. CIP acts as a risk 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 market share of How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Help easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise among the popular players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Use of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the business to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the company require an instant solution to prevent the decreasing industry growth. Introduction of digital publishing could prove to be an instant solution with low quantity of threat for the business. Nevertheless, the company could likewise consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business should first gathers the information related to the customer need, the prospective markets, the federal government guidelines and the information related to the competitors provided in the market. After that, the company must choose one potential segment for its preliminary offering. It must gather research study that how it might distinguish its digital publishing from the existing rivals' items. The steps above the business should go for the preliminary offering. The business should go for the other markets if the initial offering proves a success. In this way the business would have the ability to execute its digital publishing program.
Although, the growth of the publishing industry is declining since 2008, showing a danger to the company's long term existence, but the scenario can be controlled by thinking about an advancement plan in the future. The company could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the risk of failure for entrance in the brand-new markets.