Note On Islamic Finance Case Study Solution and Analysis
Intro
Note On Islamic Finance Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized details supplier and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Note On Islamic Finance Case Study Analysis has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring specific obstacles to the publishing industry in basic and CMP in specific. These elements consist of;
• Entrance of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised several 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 company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Note On Islamic Finance Case Study Analysis has particular strengths that can be used to minimize the hazards, get rid of the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Note On Islamic Finance Case Study Analysis in the publishing industry i.e. 60 years allows the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its effective journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and supply high worth to its clients.
• Strong financial position permits the business to consider a number of advancement opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the business has specific weak points which could increase restrictions for the business in executing its development program. The weaknesses of Note On Islamic Finance Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose particular growth strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing industry is declining considering that 2008, affecting Note On Islamic Finance Case Study Help as well, but the growth could be revived by availing specific opportunities provided in the market. The market opportunities for CMP consist of;
• The company might also 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 lower its dependence over Chinese markets by using its vast financial resources.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing industry has posed particular dangers to Note On Islamic Finance Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Note On Islamic Finance Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using specific techniques like aggressive promo, quality products, etc.
• Entrance of new publishing companies in the industry along with existence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
The business has a rather competitive financial performance. Due to absence of information, the monetary ratios of CMP might not be determined. However, the general financial performance of the business could be evaluated by using the graphs given in the case Appendices. It could be evaluated from the Appendix III that the annual overall incomes of CMP during the period 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Note On Islamic Finance Case Study Analysis is growing and the company is quite effective in drawing in a large number of customers at a possible rate.
Along with it, the second chart which shows the annual growth in the Note On Islamic Finance Case Study Solution total assets, reveals that the business is quite effective in including value to its possessions through its profits. The growth in assets shows that the overall worth of the company is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided information might be the analysis regarding the distribution of total incomes of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other company segments with a prospective growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the different external forces impacting the performance of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. It might be said that the general political forces impacting CMP service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and innovation along with the rise of digital publishing might decrease the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Note On Islamic Finance Case Study Analysis consists of 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 should not be hazardous for the environment.
Legal.
Legal guidelines 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 Design).
Porter's 5 Forces Model might be utilized to examine the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Danger of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The substitute products for the released documents is the documents provided in the digital libraries on specific sites. The altering consumer preferences towards digital learning increase the risk of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Note On Islamic Finance Case Study Solution include the providers of the paper for publishing files. As CMP is the biggest 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 presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of large number of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Note On Islamic Finance Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the same period, CIP publishes comparable type of books. For a big time period, CIP held the largest market share, and still ranks 2nd and third in different market sections, with a significant focus on academic publications. CIP acts as a risk 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 Note On Islamic Finance Case Study Solution easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same duration as Note On Islamic Finance Case Study Help and CIP. It is likewise one of the prominent players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose need of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the company require an immediate solution to prevent the decreasing market development. The company might likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company ought to initially collects the data related to the consumer demand, the possible markets, the federal government regulations and the data related to the competitors presented in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing since 2008, showing a threat to the company's long term existence, but the situation can be controlled by considering a development strategy in the future. The company could consider introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entrance in the new markets.
