Integrated Reporting At Aegon 4 Case Study Solution and Analysis
Integrated Reporting At Aegon 4 Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized information provider and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Although, Integrated Reporting At Aegon 4 Case Study Analysis has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing market in general and CMP in specific. These aspects include;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement 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 utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Integrated Reporting At Aegon 4 Case Study Solution has particular strengths that can be utilized to lower the hazards, conquer the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Integrated Reporting At Aegon 4 Case Study Analysis in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities created by its successful journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and supply high value to its consumers.
• Strong financial position enables the company to think about numerous development chances without any fear of raising fund externally.
Together with the strengths, the business has particular weak points which could increase restrictions for the business in implementing its development program. The weak points of Integrated Reporting At Aegon 4 Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific expansion plans to prevent its dependence over the Chinese markets to accomplish long term growth.
The development of the publishing industry is declining since 2008, impacting Integrated Reporting At Aegon 4 Case Study Solution as well, however the development could be restored by availing specific opportunities provided in the market. The market chances for CMP consist of;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its large financial resources.
The changing macro patterns in the market and increasing competition in the publishing industry has actually presented certain threats to Integrated Reporting At Aegon 4 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Integrated Reporting At Aegon 4 Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing particular techniques like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the industry along with presence of high competition increases the threat of losing the client base.
Due to lack of data, the financial ratios of CMP might not be calculated. It might be evaluated from the Appendix III that the annual overall incomes of Integrated Reporting At Aegon 4 Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the company is quite efficient in attracting a large number of clients at a prospective rate.
Together with it, the 2nd chart which reveals the yearly growth in the Integrated Reporting At Aegon 4 Case Study Help overall possessions, shows that the company is quite effective in adding value to its properties through its revenues. The growth in properties shows that the overall worth of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered information might be the analysis regarding the distribution of overall profits of the business. Huge part of the incomes 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 organisation segments with a potential development to attain its future advancement goal.
PESTEL analysis could be carried out to find out the different external forces impacting the performance of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a significant impact on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the general political forces affecting Integrated Reporting At Aegon 4 Case Study Solution service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in general and the Integrated Reporting At Aegon 4 Case Study Help in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the need for the publishing market. Together with it, the economic policies associated with the import of books impact the general company at CPM. However, China's economic conditions are quite favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards reading useful materials etc. China has the greatest population in the world with a high population growth, showing the increasing number of customers of the Integrated Reporting At Aegon 4 Case Study Help. The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering customer choices.
Technological forces affecting the CMP include the technological development in the reading methods etc. Improvement of science and technology along with the increase of digital publishing might decrease the need for the CMP items, if specific actions would not be taken soon.
Environmental forces affecting Integrated Reporting At Aegon 4 Case Study Analysis includes the issues of environmental neighborhoods 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 used while publishing needs to not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to analyze the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in brand-new entrants to the publishing market. The existence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Risk of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The alternative products for the released files is the documents provided in the virtual libraries on certain sites. The changing consumer choices towards digital knowing increase the threat of replacement for the market.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Integrated Reporting At Aegon 4 Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
CMP runs in a highly competitive industry with the presence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Integrated Reporting At Aegon 4 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Integrated Reporting At Aegon 4 Case Study Analysis and CIP. It is also one of the popular gamers in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Use of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the company to lose demand of its products in the market.
With the deep analysis of the external and internal environment of the company along with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the business need an instant service to avoid the declining industry growth. For that reason, intro of digital publishing could show to be an instant service with low quantity of danger for the business. The company might also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company must first collects the information related to the consumer demand, the possible markets, the government policies and the information related to the competitors presented in the market. If the preliminary offering proves a success, the business ought to go for the other markets. In this way the business would be able to implement its digital publishing program.
The growth of the publishing market is declining because 2008, showing a hazard to the business's long term existence, however the situation can be controlled by considering a development plan in the future. The company might consider introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entryway in the new markets.