Islamic Banking Lessons For The Financial Sector Case Study Solution and Analysis
Islamic Banking Lessons For The Financial Sector Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; gathering details, processing details and interaction services. Major service sections of the business consist of; books, periodicals, consultancy and distribution. The business has a large product portfolio and its major products consist of books, periodicals, online media, exhibits, research study reports and so on. Islamic Banking Lessons For The Financial Sector Case Study Solution has become a specialized details provider and a large comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Islamic Banking Lessons For The Financial Sector Case Study Help has invested its 60 years journey efficiently, being an effective publishing house, however, the changing macro market patterns and forces bring specific challenges to the publishing industry in basic and CMP in specific. These factors include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The transformation 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 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?
Islamic Banking Lessons For The Financial Sector Case Study Solution has certain strengths that can be made use of to decrease the threats, conquer the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Islamic Banking Lessons For The Financial Sector Case Study Help in the publishing market i.e. 60 years enables the company to provide high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its threat and supply high worth to its customers.
• Strong monetary position permits the company to consider a number of advancement chances without any worry of raising fund externally.
Along with the strengths, the company has particular weak points which might increase restraints for the company in implementing its development program. The weak points of Islamic Banking Lessons For The Financial Sector Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular expansion strategies to prevent its reliance over the Chinese markets to attain long term development.
The growth of the publishing industry is declining considering that 2008, impacting Islamic Banking Lessons For The Financial Sector Case Study Analysis as well, but the development could be restored by availing certain chances provided in the market. The market opportunities for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast funds.
The changing macro trends in the market and increasing competition in the publishing market has actually presented particular dangers to Islamic Banking Lessons For The Financial Sector Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Islamic Banking Lessons For The Financial Sector Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing particular strategies like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the market together with existence of high competition increases the threat of losing the consumer base.
The company has a rather competitive monetary performance. Due to absence of data, the monetary ratios of CMP might not be calculated. However, the overall monetary efficiency of the company might be evaluated by using the charts given in the case Appendices. It might be evaluated from the Appendix III that the yearly overall incomes of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of Islamic Banking Lessons For The Financial Sector Case Study Help is growing and the company is rather efficient in bring in a a great deal of customers at a potential cost.
Together with it, the second chart which reveals the yearly growth in the Islamic Banking Lessons For The Financial Sector Case Study Help overall possessions, reveals that the business is quite efficient in adding value to its possessions through its revenues. The development in properties shows that the overall worth of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the given data could be the analysis relating to the circulation of overall revenues of the company. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company segments with a potential development to achieve its future advancement objective.
PESTEL analysis could be performed to learn the various external forces affecting the efficiency of the business and the current trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a significant impact on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. It might be said that the general political forces impacting CMP organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the Islamic Banking Lessons For The Financial Sector Case Study Help in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the demand for the publishing market. Together with it, the financial policies associated with the import of books affect the total company at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer choices.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies and so on. Improvement of science and innovation along with the rise of digital publishing might decrease the need for the CMP products, if particular actions would not be taken quickly.
Ecological forces impacting Islamic Banking Lessons For The Financial Sector Case Study Analysis consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to examine the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to bring in brand-new entrants to the publishing industry. However, the existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Threat of Alternative.
Danger of Substitution is high for the Chinese Publishing Market. The alternative items for the published documents is the documents provided in the virtual libraries on certain sites. The changing consumer choices towards digital knowing increase the risk of replacement for the market.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Islamic Banking Lessons For The Financial Sector Case Study Solution include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive costs.
CMP operates in an extremely competitive market with the presence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Islamic Banking Lessons For The Financial Sector Case Study Help consist of;.
• Chemical Market 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 could wean the market share of CMP quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Islamic Banking Lessons For The Financial Sector Case Study Solution and CIP. It is likewise one of the popular players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
• Competition 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 business to lose need of its products in the market.
With the deep analysis of the internal and external environment of the business together with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the business need an instant solution to prevent the decreasing industry development. Intro of digital publishing could show to be an immediate solution with low amount of danger for the company. However, the business might likewise consider the expansion 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 information related to the consumer need, the possible markets, the government regulations and the data related to the competitors presented in the market. If the preliminary offering proves a success, the business must go for the other markets. In this method the business would be able to execute its digital publishing program.
The growth of the publishing industry is declining considering that 2008, revealing a danger to the company's long term presence, but the circumstance can be managed by thinking about an advancement plan in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entrance in the new markets.