Investment Technology Group Case Study Solution and Analysis
Intro
Investment Technology Group Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services consisting of; collecting details, processing details and interaction services. Major organisation sections of the business include; books, regulars, consultancy and circulation. The business has a huge product portfolio and its significant products include books, regulars, online media, exhibitions, research study reports etc. Investment Technology Group Case Study Analysis has actually become a specialized details company and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
CMP has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing market in general and Investment Technology Group Case Study Analysis in particular. These elements consist of;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the company could be made use of 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 Technology Group Case Study Analysis has specific strengths that can be utilized to reduce the dangers, conquer the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Investment Technology Group Case Study Solution in the publishing industry i.e. 60 years allows the company to provide high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities created by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and provide high value to its clients.
• Strong monetary position permits the company to consider numerous advancement opportunities without any worry of raising fund externally.
Weak points
Together with the strengths, the company has particular weak points which could increase restrictions for the company in implementing its advancement program. The weak points of Investment Technology Group Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the business 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 ought to propose specific expansion strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is declining considering that 2008, impacting Investment Technology Group Case Study Help as well, however the development could be revived by availing particular opportunities provided in the market. The market opportunities for CMP consist of;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its vast financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has actually postured certain threats to Investment Technology Group Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Investment Technology Group Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using specific strategies like aggressive promo, quality items, and so on
• Entrance of brand-new publishing companies in the industry along with presence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP could not be calculated. It could be evaluated from the Appendix III that the annual overall incomes of Investment Technology Group Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of CMP is growing and the company is quite efficient in bring in a large number of customers at a prospective rate.
Together with it, the second chart which shows the annual growth in the Investment Technology Group Case Study Analysis overall assets, reveals that the company is rather effective in adding value to its properties through its earnings. The development in possessions reveals that the overall value of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the business utilizing the provided information might be the analysis regarding the circulation 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 company segments with a potential development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the different external forces impacting the efficiency of the company and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. Therefore, it could be said that the overall political forces affecting Investment Technology Group Case Study Help service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods and so on. Improvement of science and technology together with the rise of digital publishing could decrease the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Investment Technology Group Case Study Solution includes the issues of environmental neighborhoods over the usage 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 ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be utilized to evaluate the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing industry. However, the existence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Threat of Alternative.
Danger of Alternative is high for the Chinese Publishing Industry. The replacement products for the released documents is the documents provided in the digital libraries on certain websites. The changing customer preferences towards digital learning increase the risk of replacement 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 Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Investment Technology Group Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 market saturation, the buyers needs high quality documents at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of large number of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Investment Technology Group Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same period, CIP releases similar kind of books. For a large period, CIP held the biggest market share, and still ranks 3rd and 2nd in different market segments, with a significant concentrate on educational publications. CIP serves 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 Investment Technology Group Case Study Solution easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also one of the popular gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along 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 need an instant option to prevent the decreasing industry development. Intro of digital publishing might prove to be an instant service with low amount of risk for the company. The company might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business must first gathers the data associated with the customer need, the prospective markets, the government policies and the data related to the competitors provided in the market. After that, the business needs to decide one potential section for its preliminary offering. It should collect research that how it could differentiate its digital publishing from the existing competitors' products. After all the steps above the business ought to choose the initial offering. The company should go for the other markets if the preliminary offering shows a success. In this way the company would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing market is declining considering that 2008, showing a hazard to the business's long term existence, but the scenario can be controlled by thinking about a development strategy in the future. The business could consider introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entrance in the new markets.
