Investment And Portfolio Management Case Study Solution and Analysis
Introduction
Investment And Portfolio Management Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information supplier and a big thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
CMP has spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market patterns and forces bring particular difficulties to the publishing industry in basic and Investment And Portfolio Management Case Study Analysis in particular. These elements include;
• Entrance of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The improvement of the macro markets have raised numerous 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 company could be utilized 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
Investment And Portfolio Management Case Study Help has certain strengths that can be used to minimize the hazards, overcome the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Investment And Portfolio Management Case Study Solution in the publishing market i.e. 60 years allows the company to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and provide high value to its customers.
• Strong monetary position allows the company to consider several advancement chances with no fear of raising fund externally.
Weak points
Together with the strengths, the business has particular weaknesses which might increase restrictions for the company in implementing its advancement program. The weaknesses of Investment And Portfolio Management Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain expansion strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is declining considering that 2008, affecting Investment And Portfolio Management Case Study Solution as well, however the growth could be restored by availing particular opportunities provided in the market. The market opportunities for CMP include;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge financial resources.
Hazards
The changing macro trends in the market and increasing competitors in the publishing industry has postured specific dangers to Investment And Portfolio Management Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Investment And Portfolio Management Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using certain methods like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the industry in addition to existence of high competitors increases the danger of losing the customer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP could not be determined. It could be evaluated from the Appendix III that the annual overall profits of Investment And Portfolio Management Case Study Help during the period 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the business is quite efficient in bring in a big number of consumers at a potential cost.
In addition to it, the 2nd graph which reveals the yearly growth in the Investment And Portfolio Management Case Study Solution overall properties, reveals that the business is rather efficient in adding worth to its possessions through its incomes. The growth in properties shows that the total worth of the company is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company using the offered data might be the analysis concerning the circulation of overall profits of the company. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sections with a possible growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the various external forces impacting the performance of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. Therefore, it could be said that the general political forces affecting Investment And Portfolio Management Case Study Solution organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Investment And Portfolio Management Case Study Analysis in particular includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the demand for the publishing market. Along with it, the economic policies associated with the import of books impact the total business at CPM. However, China's financial conditions are quite favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods etc. Enhancement of science and innovation together with the increase of digital publishing could minimize the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Investment And Portfolio Management Case Study Analysis includes the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to attract new entrants to the publishing market. The presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The substitute items for the published files is the files provided in the virtual libraries on particular sites. The altering consumer choices towards digital knowing increase the risk of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Investment And Portfolio Management Case Study Analysis consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 marketplace saturation, the purchasers requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Investment And Portfolio Management Case Study Analysis 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 same period, CIP publishes similar kind of books. For a big time period, CIP held the biggest market share, and still ranks 3rd and second in different market sectors, with a major focus on academic publications. CIP functions as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of Investment And Portfolio Management Case Study Analysis easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as Investment And Portfolio Management Case Study Help and CIP. It is also one of the prominent gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose demand of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the competitor 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 immediate solution to prevent the declining industry growth. For that reason, intro of digital publishing might prove to be an immediate option with low quantity of threat for the business. Nevertheless, the company might likewise think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business should first collects the information related to the consumer need, the prospective markets, the government policies and the information associated with the rivals presented in the market. After that, the business needs to decide one prospective segment for its initial offering. It ought to collect research study that how it could differentiate its digital publishing from the existing competitors' products. The steps above the business must go for the preliminary offering. If the initial offering proves a success, the business needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining given that 2008, showing a danger to the business's long term existence, however the scenario can be managed by thinking about a development plan in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
