Money Management Case Study Solution and Analysis
Money Management Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized details company and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Money Management Case Study Solution has actually spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring particular challenges to the publishing market in basic and CMP in specific. These aspects include;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
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 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?
Money Management Case Study Solution has specific strengths that can be utilized to minimize the dangers, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Money Management Case Study Solution in the publishing industry i.e. 60 years enables the company to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its danger and provide high value to its consumers.
• Strong financial position allows the company to think about several development opportunities with no fear of raising fund externally.
Along with the strengths, the company has particular weaknesses which might increase restrictions for the company in executing its advancement program. The weaknesses of Money Management Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain expansion strategies to prevent its reliance over the Chinese markets to attain long term development.
Although, the growth of the publishing market is declining because 2008, affecting Money Management Case Study Help also, but the development might be revived by availing specific opportunities presented in the market. The marketplace opportunities for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its large financial resources.
The altering macro trends in the market and increasing competitors in the publishing industry has actually presented certain threats to Money Management Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Money Management Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using certain techniques like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the market together with presence of high competition increases the risk of losing the client base.
The company has a rather competitive monetary performance. Due to lack of information, the monetary ratios of CMP might not be computed. The overall financial performance of the company might be examined by utilizing the charts given in the case Appendices. It might be analyzed from the Appendix III that the annual overall incomes of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of Money Management Case Study Analysis is growing and the business is quite efficient in bring in a large number of consumers at a possible cost.
Together with it, the second chart which shows the annual growth in the Money Management Case Study Help overall assets, shows that the company is quite effective in adding value to its properties through its earnings. The development in properties shows that the total worth of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the company using the given information could be the analysis relating to the circulation of total earnings of the business. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sections with a potential growth to achieve its future advancement objective.
PESTEL analysis might be performed to discover the numerous external forces affecting the performance of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a substantial 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 supervised and assisted by the Promotion Department of the Communist Party of China. It could be stated that the total political forces affecting CMP business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in general and the Money Management Case Study Solution in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the demand for the publishing market. Together with it, the financial policies connected to the import of books affect the general service at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards reading helpful materials etc. China has the highest population on the planet with a high population development, revealing the increasing variety of customers of the Money Management Case Study Solution. Nevertheless, the customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering customer choices.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Enhancement of science and innovation together with the increase of digital publishing might lower the need for the CMP items, if certain actions would not be taken quickly.
Environmental forces affecting Money Management Case Study Help 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 must not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. The legal policies concerning 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 Model).
Porter's Five Forces Design might be used to analyze the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in new entrants to the publishing industry. However, the presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Substitution.
Risk of Alternative is high for the Chinese Publishing Market. The substitute products for the published files is the files provided in the virtual libraries on specific sites. The changing consumer choices towards digital knowing increase the risk of substitution for the industry.
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 Money Management Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry 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 rates.
CMP operates in a highly competitive market with the presence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Money Management Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same period, CIP releases comparable type of books. For a large period, CIP held the biggest market share, and still ranks 3rd and second in different market segments, with a major concentrate on educational publications. CIP functions as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Money Management Case Study Help easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is likewise among the popular players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
• Use of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the company to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the business require an immediate solution to avoid the decreasing industry development. Therefore, introduction of digital publishing might prove to be an instant option with low amount of danger for the business. Nevertheless, the company might likewise think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company needs to initially gathers the data related to the consumer demand, the possible markets, the federal government regulations and the information related to the rivals presented in the market. If the initial offering shows a success, the business should go for the other markets. In this way the company would be able to implement its digital publishing program.
The growth of the publishing industry is decreasing considering that 2008, showing a danger to the company's long term existence, however the scenario can be controlled by thinking about a development 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 risk of failure for entryway in the new markets.