Jp Morgan Chase And Bear Stearns Case Study Solution and Analysis
Introduction
Jp Morgan Chase And Bear Stearns Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized info company and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Problems
CMP has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring specific difficulties to the publishing industry in basic and Jp Morgan Chase And Bear Stearns Case Study Analysis in particular. These elements include;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised several questions 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 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
Jp Morgan Chase And Bear Stearns Case Study Solution has particular strengths that can be made use of to decrease the dangers, conquer the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Jp Morgan Chase And Bear Stearns Case Study Analysis in the publishing industry i.e. 60 years allows the business to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and provide high value to its customers.
• Strong monetary position permits the business to consider a number of development chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weaknesses which might increase restrictions for the business in implementing its development program. The weaknesses of Jp Morgan Chase And Bear Stearns Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular expansion plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing market is decreasing considering that 2008, impacting Jp Morgan Chase And Bear Stearns Case Study Help as well, but the growth might be revived by availing specific opportunities provided in the market. The marketplace chances for CMP consist of;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its large funds.
Dangers
The altering macro trends in the market and increasing competition in the publishing industry has actually posed particular hazards to Jp Morgan Chase And Bear Stearns Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Jp Morgan Chase And Bear Stearns Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing specific strategies like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing companies in the market together with existence of high competition increases the risk of losing the consumer base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to absence of data, the monetary ratios of CMP might not be calculated. The total financial efficiency of the company could be evaluated by utilizing the graphs given in the case Appendices. It might be analyzed from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of Jp Morgan Chase And Bear Stearns Case Study Solution is growing and the company is quite efficient in attracting a large number of clients at a potential cost.
In addition to it, the second graph which reveals the yearly development in the Jp Morgan Chase And Bear Stearns Case Study Solution overall assets, reveals that the company is quite efficient in adding worth to its properties through its earnings. The development in assets reveals that the total value of the company is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company using the offered information might be the analysis concerning the distribution of overall incomes of the business. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sectors with a prospective growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces impacting the efficiency of the business and the current trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. It could be stated that the total political forces affecting CMP company 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 Jp Morgan Chase And Bear Stearns Case Study Solution in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the need for the publishing market. Along with it, the economic policies connected to the import of books impact the overall service at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Enhancement of science and technology along with the increase of digital publishing might decrease the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Jp Morgan Chase And Bear Stearns Case Study Analysis consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in new entrants to the publishing market. The existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Risk of Substitution is high for the Chinese Publishing Market. The replacement products for the released files is the documents presented in the digital libraries on certain sites. The changing consumer preferences towards digital learning increase the threat of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on 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 Jp Morgan Chase And Bear Stearns Case Study Solution consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Jp Morgan Chase And Bear Stearns Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Jp Morgan Chase And Bear Stearns Case Study Analysis and CIP. It is also one of the prominent players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product 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 service segments to the new one can lead the company to lose need of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company require an immediate option to avoid the declining industry growth. The business could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company ought to first collects the data related to the consumer need, the possible markets, the government policies and the information connected to the rivals provided in the market. After that, the business should choose one prospective sector for its initial offering. It should gather research study that how it could distinguish its digital publishing from the existing rivals' items. The steps above the business need to go for the preliminary offering. The company must go for the other markets if the preliminary offering proves a success. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing considering that 2008, showing a threat to the company's long term presence, but the scenario can be controlled by thinking about an advancement plan in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.
