Municipal Bond Structuring Case Study Solution and Analysis
Intro
Municipal Bond Structuring Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information service provider and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Concerns
Although, Municipal Bond Structuring Case Study Help has invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring certain difficulties to the publishing industry in basic and CMP in particular. These factors consist of;
• Entryway of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change 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 business could be utilized 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
Municipal Bond Structuring Case Study Help has specific strengths that can be utilized to reduce the hazards, overcome the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Municipal Bond Structuring Case Study Help in the publishing industry i.e. 60 years allows the business to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its successful journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and provide high worth to its customers.
• Strong financial position allows the company to consider a number of development opportunities without any fear of raising fund externally.
Weak points
Along with the strengths, the company has particular weaknesses which could increase restrictions for the company in implementing its development program. The weaknesses of Municipal Bond Structuring Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain expansion strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing industry is decreasing given that 2008, affecting Municipal Bond Structuring Case Study Solution as well, however the growth might be restored by availing certain chances presented in the market. The market opportunities for CMP consist of;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its vast funds.
Dangers
The changing macro trends in the market and increasing competition in the publishing market has positioned specific dangers to Municipal Bond Structuring Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to declining market share of Municipal Bond Structuring Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using specific methods like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the industry together with existence of high competition increases the threat of losing the customer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the annual total profits of Municipal Bond Structuring Case Study Analysis during the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of CMP is growing and the business is rather efficient in drawing in a large number of customers at a possible rate.
Together with it, the second graph which shows the yearly growth in the Municipal Bond Structuring Case Study Solution total assets, reveals that the business is rather efficient in including value to its assets through its profits. The development in assets reveals that the overall worth of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the business using the provided data might be the analysis regarding the circulation of total incomes of the business. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sectors with a prospective development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the various external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the overall political forces impacting Municipal Bond Structuring Case Study Help company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the Municipal Bond Structuring Case Study Analysis in particular includesthe prices 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. Along with it, the economic policies associated with the import of books affect the general organisation at CPM. However, China's financial conditions are rather beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques and so on. Enhancement of science and innovation along with the increase of digital publishing might decrease the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Municipal Bond Structuring Case Study Help includes the issues of environmental communities 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 ought to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized 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.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to examine the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in new entrants to the publishing industry. The presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Hazard of Substitution.
Hazard 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 customer choices towards digital learning increase the hazard of substitution for the market.
Competitive Competition.
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 competition for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Municipal Bond Structuring Case Study Solution include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 marketplace saturation, the purchasers needs high quality files at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Municipal Bond Structuring Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is also among the prominent players in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are moving towards digital publishing and the business require an immediate option to prevent the decreasing market development. Therefore, introduction of digital publishing could prove to be an immediate solution with low quantity of risk for the company. However, 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 product portfolio, the business ought to initially gathers the data related to the consumer need, the possible markets, the government regulations and the information related to the rivals provided in the market. If the initial offering shows a success, the company should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing because 2008, showing a danger to the business's long term existence, however the situation can be managed by thinking about an advancement strategy 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 danger of failure for entryway in the new markets.
