Office Depot Accounting Term Paper 2 Case Study Solution and Analysis
Office Depot Accounting Term Paper 2 Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information supplier and a large thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, Office Depot Accounting Term Paper 2 Case Study Analysis has actually spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring particular obstacles to the publishing market in basic and CMP in particular. These aspects consist of;
• Entrance of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The improvement 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 important 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?
Office Depot Accounting Term Paper 2 Case Study Analysis has certain strengths that can be used to lower the risks, conquer the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Office Depot Accounting Term Paper 2 Case Study Analysis in the publishing market i.e. 60 years allows the company to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and offer high value to its consumers.
• Strong monetary position permits the business to think about several advancement chances without any fear of raising fund externally.
In addition to the strengths, the company has certain weak points which could increase restrictions for the business in executing its development program. The weak points of Office Depot Accounting Term Paper 2 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 compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose particular expansion plans to prevent its reliance over the Chinese markets to achieve long term development.
Although, the development of the publishing market is decreasing given that 2008, impacting Office Depot Accounting Term Paper 2 Case Study Help also, but the growth could be revived by availing particular chances provided in the market. The market chances for CMP consist of;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its large financial resources.
The altering macro trends in the market and increasing competition in the publishing market has positioned specific threats to Office Depot Accounting Term Paper 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of Office Depot Accounting Term Paper 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal 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 utilizing specific strategies like aggressive promo, quality items, and so on
• Entrance of brand-new publishing companies in the industry together with existence of high competitors increases the danger of losing the client base.
Due to lack of information, the financial ratios of CMP might not be computed. It might be examined from the Appendix III that the annual overall earnings of Office Depot Accounting Term Paper 2 Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of CMP is growing and the company is quite effective in attracting a large number of customers at a prospective price.
In addition to it, the 2nd graph which reveals the yearly growth in the Office Depot Accounting Term Paper 2 Case Study Analysis total properties, shows that the business is rather effective in adding worth to its assets through its profits. The growth in assets reveals that the total worth of the company is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the company using the provided data might be the analysis relating to the distribution of overall earnings of the company. Huge part of the earnings 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 company segments with a potential development to achieve its future advancement objective.
PESTEL analysis could be performed to discover the various external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a considerable influence on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. It might be said that the total political forces impacting CMP service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Office Depot Accounting Term Paper 2 Case Study Analysis in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the need for the publishing market. Along with it, the financial policies connected to the import of books affect the total service at CPM. China's financial conditions are quite favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer choices.
Technological forces impacting the CMP include the technological development in the reading techniques etc. Improvement of science and technology together with the rise of digital publishing might decrease the demand for the CMP items, if specific actions would not be taken quickly.
Ecological forces affecting Office Depot Accounting Term Paper 2 Case Study Analysis includes the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing should not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to examine the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing market. The presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Substitution.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement products for the released files is the files provided in the digital libraries on certain websites. The changing consumer choices towards digital knowing increase the hazard of alternative for the market.
Competitive rivalry 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, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Office Depot Accounting Term Paper 2 Case Study Help include the suppliers 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 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 market saturation, the purchasers requires high quality documents at competitive rates.
CMP operates in a highly competitive industry with the existence 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. Major rivals of Office Depot Accounting Term Paper 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same duration, CIP publishes similar type of books. For a big time period, CIP held the biggest market share, and still ranks 3rd and second in different market sectors, with a significant concentrate on educational publications. CIP serves as a threat 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 marketplace share of Office Depot Accounting Term Paper 2 Case Study Analysis quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Office Depot Accounting Term Paper 2 Case Study Solution and CIP. It is also one of the prominent players in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose need of its products in the market.
With the deep analysis of the internal and external environment of the business along with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the company require an instant option to avoid the declining industry development. For that reason, introduction of digital publishing could prove to be an instant service with low quantity of danger for the business. The business could likewise consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business needs to first gathers the information connected to the customer demand, the possible markets, the government policies and the data associated with the rivals provided in the market. After that, the company needs to choose one possible segment for its initial offering. It needs to collect research that how it might differentiate its digital publishing from the existing rivals' items. The actions above the business need to go for the preliminary offering. The company should go for the other markets if the initial offering shows a success. In this method the business would be able to execute its digital publishing program.
Although, the development of the publishing market is declining considering that 2008, showing a danger to the business's long term existence, however the scenario can be managed by considering an advancement plan in the future. The company could consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.