Jp Morgan Private Bank Risk Management During The Financial Crisis 2008 2009 Case Study Solution and Analysis
Introduction
Jp Morgan Private Bank Risk Management During The Financial Crisis 2008 2009 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized information company and a large extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
CMP has actually spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring particular difficulties to the publishing industry in basic and Jp Morgan Private Bank Risk Management During The Financial Crisis 2008 2009 Case Study Analysis in particular. These factors include;
• Entryway of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The transformation 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 company could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Jp Morgan Private Bank Risk Management During The Financial Crisis 2008 2009 Case Study Solution has particular strengths that can be utilized to minimize the hazards, conquer the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Jp Morgan Private Bank Risk Management During The Financial Crisis 2008 2009 Case Study Help in the publishing market i.e. 60 years enables the business to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and offer high value to its customers.
• Strong monetary position enables the business to think about several advancement chances without any fear of raising fund externally.
Weak points
Along with the strengths, the business has specific weaknesses which might increase constraints for the company in executing its advancement program. The weaknesses of Jp Morgan Private Bank Risk Management During The Financial Crisis 2008 2009 Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain expansion strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, affecting Jp Morgan Private Bank Risk Management During The Financial Crisis 2008 2009 Case Study Analysis also, however the growth could be restored by availing particular chances provided in the market. The market opportunities for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its large financial resources.
Dangers
The changing macro trends in the market and increasing competition in the publishing industry has actually posed particular hazards to Jp Morgan Private Bank Risk Management During The Financial Crisis 2008 2009 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Jp Morgan Private Bank Risk Management During The Financial Crisis 2008 2009 Case Study Help due to the customer 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 rivals can gain a strong customer base by utilizing specific methods like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the industry along with existence of high competitors increases the risk of losing the customer base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP could not be computed. It could be evaluated from the Appendix III that the annual overall profits of Jp Morgan Private Bank Risk Management During The Financial Crisis 2008 2009 Case Study Analysis during the period 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 rather efficient in attracting a big number of clients at a potential price.
Along with it, the second chart which reveals the yearly development in the Jp Morgan Private Bank Risk Management During The Financial Crisis 2008 2009 Case Study Help total assets, reveals that the company is quite effective in adding worth to its possessions through its earnings. The development in possessions shows that the overall value of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the given data could be the analysis regarding the distribution of overall profits of the business. Major part of the earnings 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 business sectors with a possible development to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the different external forces impacting the performance of the company and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the state of mind of the people about the communist ideology of the 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 government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the Jp Morgan Private Bank Risk Management During The Financial Crisis 2008 2009 Case Study Help in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces combine effect the demand for the publishing market. In addition to it, the economic policies connected to the import of books affect the total organisation at CPM. Nevertheless, China's financial conditions are rather favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards reading informative materials etc. China has the highest population worldwide with a high population development, revealing the increasing variety of consumers of the Jp Morgan Private Bank Risk Management During The Financial Crisis 2008 2009 Case Study Solution. The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques and so on. Improvement of science and innovation in addition to the increase of digital publishing could decrease the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Jp Morgan Private Bank Risk Management During The Financial Crisis 2008 2009 Case Study Solution includes the issues of ecological neighborhoods over the use 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 needs to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be utilized to evaluate the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract brand-new entrants to the publishing market. The presence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Alternative.
Risk of Substitution is high for the Chinese Publishing Market. The substitute products for the released files is the documents provided in the virtual libraries on specific websites. The altering customer choices towards digital learning increase the risk of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Jp Morgan Private Bank Risk Management During The Financial Crisis 2008 2009 Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
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 buyers needs high quality files at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Jp Morgan Private Bank Risk Management During The Financial Crisis 2008 2009 Case Study Solution consist of;.
• Chemical Industry 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 type of books. For a large period, CIP held the biggest market share, and still ranks 2nd and 3rd in numerous market sections, with a significant focus on instructional publications. CIP functions as a danger 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 marketplace share of Jp Morgan Private Bank Risk Management During The Financial Crisis 2008 2009 Case Study Solution easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also among the prominent players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the company to lose demand of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the business need an immediate solution to prevent the decreasing industry growth. The business might also think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business ought to initially gathers the data associated with the consumer need, the possible markets, the government guidelines and the data related to the rivals presented in the market. After that, the company ought to decide one potential sector for its preliminary offering. It must collect research study that how it might distinguish its digital publishing from the existing rivals' items. The actions above the business should go for the initial offering. If the initial offering proves a success, the business ought to opt for the other markets. In this method the business would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing considering that 2008, revealing a risk to the company's long term existence, however the scenario can be managed by thinking about an advancement strategy in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entryway in the new markets.
