Investment Strategy Project Case Study Solution and Analysis
Investment Strategy Project Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized details company and a large extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
CMP has spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market patterns and forces bring certain difficulties to the publishing industry in basic and Investment Strategy Project Case Study Analysis in particular. These factors consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the business could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Investment Strategy Project Case Study Analysis has specific strengths that can be made use of to minimize the risks, get rid of the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Investment Strategy Project Case Study Analysis in the publishing industry i.e. 60 years enables the company to supply high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and offer high worth to its consumers.
• Strong financial position permits the company to think about several advancement opportunities with no worry of raising fund externally.
Along with the strengths, the business has particular weaknesses which might increase restraints for the company in executing its advancement program. The weak points of Investment Strategy Project Case Study Analysis are given 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 highly relies over the Chinese markets for its growth. It must propose specific expansion plans to avoid its reliance over the Chinese markets to accomplish long term development.
The development of the publishing market is declining since 2008, impacting Investment Strategy Project Case Study Analysis as well, but the growth could be revived by availing certain opportunities provided in the market. The market opportunities for CMP include;
• The business might also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its large funds.
The altering macro patterns in the market and increasing competitors in the publishing market has positioned particular dangers to Investment Strategy Project Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Investment Strategy Project Case Study Solution due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the hazard 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 items, etc.
• Entrance of new publishing firms in the market together with existence of high competition increases the danger of losing the client base.
The company has a rather competitive monetary performance. Due to absence of information, the financial ratios of CMP could not be computed. The total monetary performance of the company could be analyzed by using the graphs offered in the case Appendices. It could be evaluated from the Appendix III that the annual overall revenues of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the items of Investment Strategy Project Case Study Analysis is growing and the business is quite efficient in drawing in a large number of clients at a possible price.
In addition to it, the 2nd chart which shows the annual growth in the Investment Strategy Project Case Study Help overall properties, shows that the company is rather effective in including value to its assets through its incomes. The growth in possessions reveals that the total value of the company is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered information might be the analysis concerning the distribution of overall revenues of the company. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sections with a potential growth to attain its future development goal.
PESTEL analysis could be conducted to discover the different external forces impacting the performance of the business and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a substantial effect on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. It might be said that the overall political forces affecting CMP company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out helpful products etc. China has the greatest population worldwide with a high population development, revealing the increasing variety of customers of the Investment Strategy Project Case Study Help. However, the consumer preferences are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer choices.
Technological forces impacting the CMP include the technological development in the reading techniques and so on. Enhancement of science and technology in addition to the increase of digital publishing might lower the need for the CMP products, if particular actions would not be taken quickly.
Environmental forces affecting Investment Strategy Project Case Study Analysis includes the issues of ecological communities 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 utilized while publishing needs to not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to evaluate the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to draw in brand-new entrants to the publishing market. The presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Threat of Substitution is high for the Chinese Publishing Market. The replacement products for the released documents is the documents presented in the digital libraries on certain websites. The altering consumer choices towards digital knowing increase the danger of replacement for the industry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Investment Strategy Project Case Study Solution include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive costs.
CMP runs in a highly competitive market with the presence 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 Investment Strategy Project Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
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 CMP quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise one of the prominent players in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose need of its items in the market.
With the deep analysis of the internal and external environment of the business together with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the company require an instant option to avoid the declining market growth. For that reason, intro of digital publishing could prove to be an instant service with low quantity of danger 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 company must first gathers the data related to the customer need, the possible markets, the federal government guidelines and the information related to the competitors provided in the market. If the preliminary offering shows a success, the business must go for the other markets. In this way the company would be able to execute its digital publishing program.
Although, the growth of the publishing market is declining given that 2008, revealing a hazard to the company's long term existence, but the situation can be managed by considering a development strategy in the future. The business could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entrance in the new markets.