Money Management Case Study Solution and Analysis
Intro
Money Management Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services including; collecting information, processing information and communication services. Major business sections of the business include; books, regulars, consultancy and distribution. The company has a vast item portfolio and its significant products include books, regulars, online media, exhibitions, research reports and so on. Money Management Case Study Solution has actually ended up being a specialized info provider and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, Money Management Case Study Solution has actually spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring particular obstacles to the publishing market in basic and CMP in specific. These factors consist of;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The change 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 situation? 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
Money Management Case Study Analysis has specific strengths that can be made use of to decrease the hazards, overcome the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Money Management Case Study Help in the publishing market i.e. 60 years allows the business to supply high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and supply high value to its consumers.
• Strong financial position permits the business to consider several advancement chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has certain weak points which might increase restraints for the business in implementing its advancement program. The weak points of Money Management Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose particular expansion strategies to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing industry is declining since 2008, affecting Money Management Case Study Solution as well, however the growth could be restored by availing certain opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast financial resources.
Dangers
The changing macro trends in the market and increasing competition in the publishing market has posed particular hazards to Money Management Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Money Management Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using particular strategies like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing firms in the industry in addition to existence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
The business has a quite competitive financial efficiency. Due to absence of information, the financial ratios of CMP might not be calculated. However, the overall financial efficiency of the company could be examined by using the charts given in the case Appendices. It might be analyzed from the Appendix III that the yearly total incomes of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the items of Money Management Case Study Solution is growing and the company is quite efficient in attracting a a great deal of clients at a potential cost.
In addition to it, the second graph which shows the yearly growth in the Money Management Case Study Analysis total possessions, reveals that the business is rather efficient in adding value to its properties through its incomes. The development in assets shows that the overall value of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company using the given information might be the analysis regarding the circulation of overall incomes of the company. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sectors with a possible development to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the numerous external forces affecting the performance of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It might be said that the total political forces impacting CMP service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading informative products etc. China has the highest population on the planet with a high population growth, revealing the increasing variety of customers of the Money Management Case Study Solution. Nevertheless, the consumer preferences are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Enhancement of science and innovation along with the rise of digital publishing could lower the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Money Management Case Study Analysis includes the issues of ecological neighborhoods over the use 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 harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be utilized to examine the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to attract new entrants to the publishing industry. The existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Danger of Alternative is high for the Chinese Publishing Market. The alternative items for the published files is the documents provided in the virtual libraries on certain websites. The changing customer choices towards digital learning increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Money Management Case Study Solution consist of the providers of the paper for releasing 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 Purchaser.
Negotiating 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 marketplace saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Money Management Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same period, CIP releases comparable type of books. For a large time period, CIP held the largest market share, and still ranks 2nd and third in different market sectors, with a significant concentrate on academic publications. CIP functions as a risk 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 market share of Money Management Case Study Help easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as Money Management Case Study Help and CIP. It is also one of the prominent players in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business need an immediate option to avoid the decreasing industry growth. The business might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company ought to initially collects the information related to the customer demand, the prospective markets, the government regulations and the data related to the competitors presented in the market. If the initial offering proves a success, the business needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing given that 2008, revealing a danger to the company's long term existence, but the circumstance can be controlled by thinking about a development plan in the future. The company might think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
