Innovative Ways Of Raising Funds And Adding Value Stakeholder Approach To Whole Business Securitization Case Study Solution and Analysis
Introduction
Innovative Ways Of Raising Funds And Adding Value Stakeholder Approach To Whole Business Securitization Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized information service provider and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, Innovative Ways Of Raising Funds And Adding Value Stakeholder Approach To Whole Business Securitization Case Study Help has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring specific obstacles to the publishing market in general and CMP in specific. These elements consist of;
• Entryway of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• 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 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
Innovative Ways Of Raising Funds And Adding Value Stakeholder Approach To Whole Business Securitization Case Study Solution has certain strengths that can be used to reduce the dangers, get rid of the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Innovative Ways Of Raising Funds And Adding Value Stakeholder Approach To Whole Business Securitization Case Study Analysis in the publishing market i.e. 60 years permits the company to provide high quality items at a lower expense using its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and supply high worth to its customers.
• Strong monetary position allows the company to consider several advancement chances with no worry of raising fund externally.
Weak points
Along with the strengths, the company has certain weaknesses which could increase restrictions for the business in executing its advancement program. The weaknesses of Innovative Ways Of Raising Funds And Adding Value Stakeholder Approach To Whole Business Securitization Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the company 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 needs to propose specific growth strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is declining considering that 2008, affecting Innovative Ways Of Raising Funds And Adding Value Stakeholder Approach To Whole Business Securitization Case Study Analysis too, but the development might be revived by availing particular opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its large financial resources.
Threats
The changing macro trends in the market and increasing competition in the publishing market has presented certain hazards to Innovative Ways Of Raising Funds And Adding Value Stakeholder Approach To Whole Business Securitization Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of Innovative Ways Of Raising Funds And Adding Value Stakeholder Approach To Whole Business Securitization Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular methods like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the market along with presence of high competitors increases the risk of losing the client base.
Monetary Analysis.
The company has a rather competitive monetary efficiency. Due to lack of data, the financial ratios of CMP could not be computed. However, the total monetary efficiency of the company could be examined by utilizing the charts given up the case Appendices. It might be examined from the Appendix III that the annual overall revenues of CMP during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of Innovative Ways Of Raising Funds And Adding Value Stakeholder Approach To Whole Business Securitization Case Study Analysis is growing and the business is rather effective in attracting a large number of customers at a possible cost.
Together with it, the 2nd graph which reveals the annual growth in the Innovative Ways Of Raising Funds And Adding Value Stakeholder Approach To Whole Business Securitization Case Study Help overall assets, reveals that the business is quite efficient in adding worth to its properties through its revenues. The growth in possessions shows that the total worth of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company using the provided information could be the analysis regarding the circulation of total earnings of the company. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sections with a potential development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the various external forces impacting the performance of the business and the recent patterns in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. It could be stated that the general political forces impacting CMP service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading informative products and so on. China has the greatest population on the planet with a high population growth, revealing the increasing variety of customers of the Innovative Ways Of Raising Funds And Adding Value Stakeholder Approach To Whole Business Securitization Case Study Help. Nevertheless, the customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods etc. Enhancement of science and innovation along with the increase of digital publishing might lower the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Innovative Ways Of Raising Funds And Adding Value Stakeholder Approach To Whole Business Securitization Case Study Analysis consists of the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to examine the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract brand-new entrants to the publishing market. The presence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Danger of Alternative is high for the Chinese Publishing Market. The replacement products for the published files is the files provided in the digital libraries on particular websites. The changing customer preferences towards digital knowing increase the hazard of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Innovative Ways Of Raising Funds And Adding Value Stakeholder Approach To Whole Business Securitization Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Innovative Ways Of Raising Funds And Adding Value Stakeholder Approach To Whole Business Securitization Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same period, CIP publishes similar type of books. For a large time period, CIP held the biggest market share, and still ranks third and second in numerous market sections, with a significant focus on academic publications. CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of Innovative Ways Of Raising Funds And Adding Value Stakeholder Approach To Whole Business Securitization Case Study Solution easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also among the popular gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose demand of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company need an immediate solution to prevent the decreasing industry development. The company might likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company must initially gathers the data associated with the consumer need, the potential markets, the government guidelines and the data related to the competitors presented in the market. After that, the company needs to choose one prospective sector for its preliminary offering. It must collect research that how it could distinguish its digital publishing from the existing rivals' products. The steps above the company must go for the preliminary offering. If the preliminary offering proves a success, the business should go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining since 2008, revealing a risk to the business's long term existence, however the circumstance can be controlled by considering a development strategy in the future. The company could think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entryway in the new markets.
