Mirae Asset Koreas Mutual Fund Pioneer Case Study Solution and Analysis
Introduction
Mirae Asset Koreas Mutual Fund Pioneer Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being 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.
Critical Concerns
Although, Mirae Asset Koreas Mutual Fund Pioneer Case Study Analysis has actually spent its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring particular difficulties to the publishing market in general and CMP in specific. These aspects include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous 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 capabilities of the company could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Mirae Asset Koreas Mutual Fund Pioneer Case Study Analysis has certain strengths that can be made use of to decrease the risks, conquer the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Mirae Asset Koreas Mutual Fund Pioneer Case Study Help in the publishing industry i.e. 60 years enables the business to offer high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities created by its effective journey provide a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its danger and offer high value to its consumers.
• Strong financial position allows the business to think about several advancement opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the company has specific weaknesses which could increase restraints for the company in executing its development program. The weak points of Mirae Asset Koreas Mutual Fund Pioneer Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular growth plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing market is declining given that 2008, impacting Mirae Asset Koreas Mutual Fund Pioneer Case Study Analysis as well, but the growth could be restored by availing specific chances 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 consumer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast financial resources.
Risks
The changing macro trends in the market and increasing competitors in the publishing market has actually positioned certain threats to Mirae Asset Koreas Mutual Fund Pioneer Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Mirae Asset Koreas Mutual Fund Pioneer Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing certain strategies like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the industry in addition to existence of high competitors increases the risk of losing the customer base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP might not be computed. It might be analyzed from the Appendix III that the annual total profits of Mirae Asset Koreas Mutual Fund Pioneer Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the business is quite efficient in bring in a big number of customers at a prospective rate.
Together with it, the 2nd graph which reveals the yearly development in the Mirae Asset Koreas Mutual Fund Pioneer Case Study Solution overall assets, shows that the business is rather efficient in including value to its possessions through its earnings. The growth in properties shows that the total value of the company is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given data might be the analysis concerning the circulation of overall incomes of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sectors with a possible development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the different external forces impacting the performance of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. It could be said that the overall political forces affecting CMP business are high. The government policies relating to 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 costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading useful materials and so on. China has the greatest population on the planet with a high population growth, revealing the increasing variety of consumers of the Mirae Asset Koreas Mutual Fund Pioneer Case Study Analysis. The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Enhancement of science and innovation together with the increase of digital publishing might reduce the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Mirae Asset Koreas Mutual Fund Pioneer Case Study Solution consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be used to evaluate the attractiveness 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 Industry is moderate. The potential development in the industry tends to bring in new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Danger of Substitution.
Hazard of Substitution is high for the Chinese Publishing Industry. The substitute items for the published documents is the files provided in the virtual libraries on specific sites. The altering consumer preferences towards digital learning increase the danger of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers 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 market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Mirae Asset Koreas Mutual Fund Pioneer Case Study Help include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Mirae Asset Koreas Mutual Fund Pioneer Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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).
Another close rival of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise one of the popular gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 organisation sectors to the new one can lead the company to lose demand of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the company require an instant service to avoid the decreasing market growth. The company could likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business must initially collects the information related to the consumer demand, the prospective markets, the government policies and the data related to the rivals provided in the market. If the initial offering proves a success, the business should go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining because 2008, revealing a threat to the business's long term presence, but the circumstance can be controlled by thinking about an advancement strategy in the future. The company could think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
