Mike Mayo Takes On Citigroup A Case Study Solution and Analysis
Intro
Mike Mayo Takes On Citigroup A Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info service provider and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing market in basic and Mike Mayo Takes On Citigroup A Case Study Help in specific. These factors include;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The improvement 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 scenario? Do the long valuable experience, technical resources and the abilities of the company could be made use of 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
Mike Mayo Takes On Citigroup A Case Study Solution has specific strengths that can be utilized to lower the risks, conquer the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Mike Mayo Takes On Citigroup A Case Study Analysis in the publishing market i.e. 60 years allows the business to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and offer high value to its clients.
• Strong monetary position enables the company to consider a number of development chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weak points which could increase restraints for the company in executing its development program. The weaknesses of Mike Mayo Takes On Citigroup A Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain growth plans to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The development of the publishing market is declining considering that 2008, impacting Mike Mayo Takes On Citigroup A Case Study Solution as well, however the growth could be revived by availing certain chances presented in the market. The market opportunities for CMP include;
• The company could 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 growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge financial resources.
Threats
The altering macro patterns in the market and increasing competition in the publishing market has presented specific threats to Mike Mayo Takes On Citigroup A Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Mike Mayo Takes On Citigroup A Case Study Help due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using particular techniques like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing firms in the market in addition to presence of high competitors increases the risk of losing the client base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP could not be determined. It could be examined from the Appendix III that the yearly total revenues of Mike Mayo Takes On Citigroup A Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of CMP is growing and the business is quite effective in attracting a large number of clients at a potential price.
In addition to it, the second chart which shows the yearly development in the Mike Mayo Takes On Citigroup A Case Study Solution overall assets, shows that the business is rather effective in adding value to its assets through its incomes. The development in possessions shows that the overall value of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company using the provided information might be the analysis concerning the distribution of total revenues of the business. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sections with a prospective development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the various external forces affecting the performance of the business and the current patterns in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the mindset of individuals about the communist ideology of the 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 general political forces affecting CMP service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and innovation together with the rise of digital publishing might decrease the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Mike Mayo Takes On Citigroup A Case Study Help includes the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing needs to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to examine the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to draw in new entrants to the publishing market. However, the existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement products for the released files is the files presented in the virtual libraries on specific websites. The changing consumer choices towards digital knowing increase the threat of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Mike Mayo Takes On Citigroup A Case Study Analysis include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry 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 prices.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Mike Mayo Takes On Citigroup A Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same period, CIP publishes comparable kind of books. For a big time period, CIP held the biggest market share, and still ranks third and second in different market segments, with a major concentrate on academic 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 could wean the market share of Mike Mayo Takes On Citigroup A Case Study Help easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as Mike Mayo Takes On Citigroup A Case Study Help and CIP. It is likewise one of the prominent players in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the company need an immediate solution to avoid the declining market development. Therefore, introduction of digital publishing could show to be an instant option with low quantity of risk for the company. The business might likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business should initially gathers the data related to the customer demand, the potential markets, the government policies and the data associated with the competitors presented in the market. After that, the company should choose one prospective section for its initial offering. It must collect research that how it might distinguish its digital publishing from the existing competitors' products. The steps above the business should go for the initial offering. The business 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
The development of the publishing industry is decreasing because 2008, showing a threat to the business's long term presence, however the situation can be controlled by considering an advancement plan in the future. The business could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
