Itau Unibanco A The Merger Process Case Study Solution and Analysis
Intro
Itau Unibanco A The Merger Process Case Study Analysis is the largest 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 company through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Itau Unibanco A The Merger Process Case Study Help has actually spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring certain obstacles to the publishing industry in general and CMP in specific. These elements consist of;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the business could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Itau Unibanco A The Merger Process Case Study Analysis has particular strengths that can be made use of to reduce the hazards, conquer the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Itau Unibanco A The Merger Process Case Study Help in the publishing market i.e. 60 years allows the business to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its threat and provide high worth to its consumers.
• Strong financial position enables the business to consider several development chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weaknesses which might increase constraints for the business in implementing its development program. The weaknesses of Itau Unibanco A The Merger Process Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, 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 growth plans to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing market is declining since 2008, impacting Itau Unibanco A The Merger Process Case Study Help as well, but the development might be restored by availing particular chances presented in the market. The marketplace opportunities for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its huge funds.
Threats
The altering macro patterns in the market and increasing competition in the publishing market has actually postured particular threats to Itau Unibanco A The Merger Process Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to decreasing market share of Itau Unibanco A The Merger Process Case Study Solution due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using specific techniques like aggressive promo, quality items, and so on
• Entryway of brand-new publishing firms in the market together with existence of high competitors increases the danger of losing the client base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP could not be computed. It could be examined from the Appendix III that the yearly overall profits of Itau Unibanco A The Merger Process Case Study Analysis during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the company is rather efficient in attracting a big number of clients at a prospective price.
In addition to it, the 2nd graph which reveals the annual growth in the Itau Unibanco A The Merger Process Case Study Help overall properties, shows that the business is rather efficient in including value to its properties through its incomes. The growth in properties shows that the total value of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided information could be the analysis relating to the circulation of total revenues of the business. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other business sectors with a potential development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the various external forces impacting the performance of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. It could be stated that the overall political forces affecting CMP business 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 Itau Unibanco A The Merger Process Case Study Help in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the demand for the publishing market. Along with it, the economic policies related to the import of books affect the overall organisation at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Improvement of science and technology in addition to the increase of digital publishing could lower the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Itau Unibanco A The Merger Process Case Study Solution includes the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be used to evaluate the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to draw in brand-new entrants to the publishing industry. The existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Substitution.
Danger of Replacement is high for the Chinese Publishing Market. The substitute items for the published documents is the files presented in the virtual libraries on particular sites. The changing customer choices towards digital learning increase the danger of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Itau Unibanco A The Merger Process Case Study Analysis include the suppliers of the paper for publishing 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 buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Itau Unibanco A The Merger Process Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the same period, CIP publishes similar kind of books. For a large period, CIP held the biggest market share, and still ranks 2nd and 3rd in various market sectors, with a major concentrate on instructional publications. CIP functions as a threat 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 market share of Itau Unibanco A The Merger Process Case Study Help easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is likewise among the popular players in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
Cons
• Competitors 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 business to lose need of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the business require an immediate solution to prevent the decreasing market growth. The business might likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business should first gathers the data connected to the consumer need, the prospective markets, the federal government guidelines and the data related to the rivals presented in the market. After that, the business must choose one prospective sector for its initial offering. It should gather research that how it might differentiate its digital publishing from the existing competitors' products. After all the steps above the business must choose the preliminary offering. The business should go for the other markets if the preliminary offering shows a success. In this way the business would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing because 2008, revealing a hazard to the company's long term existence, however the circumstance can be managed by considering an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
