Investment Strategy Project Case Study Solution and Analysis
Introduction
Investment Strategy Project Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details provider and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, Investment Strategy Project Case Study Analysis has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring particular challenges to the publishing market in general and CMP in specific. These factors include;
• Entrance of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the company could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Investment Strategy Project Case Study Help has specific strengths that can be made use of to decrease the hazards, conquer the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Investment Strategy Project Case Study Analysis in the publishing market i.e. 60 years permits the company to supply high quality products at a lower expense using its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its risk and supply high value to its consumers.
• Strong monetary position permits the business to think about a number of advancement chances without any fear of raising fund externally.
Weak points
In addition to the strengths, the business has particular weaknesses which could increase restraints for the company in executing its advancement program. The weak points of Investment Strategy Project Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose certain expansion plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing market is decreasing considering that 2008, affecting Investment Strategy Project Case Study Analysis also, however the development might be restored by availing particular chances provided in the market. The market chances for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge financial resources.
Threats
The altering macro trends in the market and increasing competitors in the publishing market has actually posed particular hazards to Investment Strategy Project Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Investment Strategy Project Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using particular methods like aggressive promotion, quality products, etc.
• Entrance of new publishing companies in the market in addition to presence of high competition increases the risk of losing the client base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP could not be computed. It might be analyzed from the Appendix III that the annual overall profits of Investment Strategy Project Case Study Help during the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of CMP is growing and the business is rather efficient in attracting a big number of clients at a potential price.
In addition to it, the second chart which reveals the annual growth in the Investment Strategy Project Case Study Help total properties, reveals that the business is rather efficient in adding worth to its properties through its incomes. The growth in assets shows that the total value of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the business using the offered information might be the analysis regarding the circulation of overall profits of the business. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sectors with a potential development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the various external forces impacting the efficiency of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. It could be stated that the general political forces impacting CMP organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods etc. Improvement of science and innovation along with the increase of digital publishing might reduce the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Investment Strategy Project Case Study Help consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used 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.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Hazards of brand-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 market. Nevertheless, the existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Alternative.
Threat of Replacement is high for the Chinese Publishing Industry. The replacement items for the released documents is the documents presented in the virtual libraries on particular sites. The altering customer preferences towards digital knowing increase the threat of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing market 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. In addition to it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Investment Strategy Project Case Study Solution include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of large number of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Investment Strategy Project Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the exact same duration, CIP releases comparable type of books. For a large time period, CIP held the largest market share, and still ranks third and second in numerous market sections, with a significant concentrate on educational publications. CIP serves as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Investment Strategy Project Case Study Analysis quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is likewise one of the prominent gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose need of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the company need an immediate solution to avoid the decreasing market growth. The business might also think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company needs to initially collects the information related to the customer demand, the potential markets, the federal government policies and the information related to the competitors presented in the market. If the preliminary offering shows a success, the company ought 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 industry is declining because 2008, showing a hazard to the business's long term existence, however the scenario can be controlled by thinking about a development plan in the future. The company could think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
