Islamic Banking Lessons For The Financial Sector Case Study Solution and Analysis
Introduction
Islamic Banking Lessons For The Financial Sector Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized info supplier and a big thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Problems
Although, Islamic Banking Lessons For The Financial Sector Case Study Solution has actually spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing industry in general and CMP in particular. These factors include;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The change 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 valuable experience, technical resources and the abilities of the business could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Islamic Banking Lessons For The Financial Sector Case Study Solution has particular strengths that can be used to minimize the threats, conquer the weakness and obtain the chances. Strengths of CMP are given 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 permits the business to provide high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong financial position enables the company to think about numerous advancement opportunities with no worry of raising fund externally.
Weak points
Together with the strengths, the business has certain weak points which could increase restrictions for the company in executing its development program. The weak points of Islamic Banking Lessons For The Financial Sector Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular expansion plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing market is declining since 2008, affecting Islamic Banking Lessons For The Financial Sector Case Study Analysis as well, but the development might be revived by availing certain chances provided in the market. The marketplace chances for CMP include;
• The business might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its huge funds.
Risks
The altering macro trends in the market and increasing competitors in the publishing market has positioned specific hazards to Islamic Banking Lessons For The Financial Sector Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Islamic Banking Lessons For The Financial Sector Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing particular strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the industry together with existence of high competition increases the hazard of losing the client base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP could not be computed. It could be analyzed from the Appendix III that the yearly overall earnings of Islamic Banking Lessons For The Financial Sector Case Study Solution during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the business is rather effective in drawing in a big number of clients at a potential price.
Together with it, the 2nd graph which shows the yearly growth in the Islamic Banking Lessons For The Financial Sector Case Study Help overall properties, shows that the business is rather effective in adding value to its properties through its incomes. The development in properties shows that the total worth of the company is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the business using the offered information could be the analysis regarding the circulation of total profits of the business. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service segments with a possible development to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the numerous external forces affecting the performance of the business and the recent 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 considerable effect on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It might be stated that the total political forces impacting CMP organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Enhancement of science and innovation along with the increase of digital publishing might reduce the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Islamic Banking Lessons For The Financial Sector Case Study Solution consists of the concerns of environmental communities 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 must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be used to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in new entrants to the publishing market. Nevertheless, the presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Threat of Replacement is high for the Chinese Publishing Market. The substitute items for the published files is the documents provided in the virtual libraries on certain websites. The altering customer preferences towards digital knowing increase the danger of substitution for the industry.
Competitive Competition.
Competitive rivalry 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 competition for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Islamic Banking Lessons For The Financial Sector Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
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 buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Islamic Banking Lessons For The Financial Sector Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same duration, CIP publishes comparable type of books. For a large time period, CIP held the largest market share, and still ranks 2nd and third in numerous market sectors, with a major focus on instructional publications. CIP functions as a hazard 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 Islamic Banking Lessons For The Financial Sector Case Study Help easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Islamic Banking Lessons For The Financial Sector Case Study Help and CIP. It is likewise one of the prominent players in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with 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 business need an instant service to prevent the declining industry growth. Therefore, intro of digital publishing could show to be an instant service with low amount of risk for the business. The business could likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business needs to first collects the information associated with the consumer demand, the potential markets, the government regulations and the information connected to the rivals presented in the market. After that, the business needs to choose one prospective section for its initial offering. It needs to collect research that how it could separate its digital publishing from the existing rivals' items. After all the actions above the company ought to choose the initial offering. If the preliminary offering shows a success, the business should opt for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining because 2008, revealing a danger to the company's long term existence, however the circumstance can be managed by considering a development plan in the future. The company might consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the risk of failure for entryway in the new markets.
