Office Depot Accounting Term Paper 2 Case Study Solution and Analysis
Office Depot Accounting Term Paper 2 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP provides a number of services including; collecting details, processing info and communication services. Major business sections of the business consist of; books, periodicals, consultancy and distribution. The business has a large item portfolio and its major items consist of books, periodicals, online media, exhibits, research reports etc. Office Depot Accounting Term Paper 2 Case Study Solution has become a specialized details supplier and a big comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing industry in basic and Office Depot Accounting Term Paper 2 Case Study Solution in specific. These factors consist of;
• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
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 situation? Do the long valuable experience, technical resources and the abilities of the company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Office Depot Accounting Term Paper 2 Case Study Help has certain strengths that can be made use of to lower the hazards, conquer the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Office Depot Accounting Term Paper 2 Case Study Analysis in the publishing industry i.e. 60 years enables the company to offer high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and provide high worth to its consumers.
• Strong financial position permits the company to consider several development chances with no worry of raising fund externally.
In addition to the strengths, the business has specific weaknesses which could increase constraints for the company in executing its development program. The weaknesses of Office Depot Accounting Term Paper 2 Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain expansion strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
The development of the publishing industry is decreasing because 2008, impacting Office Depot Accounting Term Paper 2 Case Study Solution as well, however the development might be revived by availing specific chances presented in the market. The marketplace opportunities for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its large funds.
The changing macro patterns in the market and increasing competitors in the publishing market has postured certain risks to Office Depot Accounting Term Paper 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Office Depot Accounting Term Paper 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific methods like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the market together with existence of high competition increases the threat of losing the consumer base.
The business has a rather competitive financial performance. Due to lack of data, the financial ratios of CMP might not be determined. The total financial efficiency of the business could be examined by utilizing the graphs given in the case Appendices. It could be examined from the Appendix III that the annual overall incomes of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of Office Depot Accounting Term Paper 2 Case Study Help is growing and the company is quite effective in drawing in a large number of clients at a possible cost.
In addition to it, the second chart which reveals the yearly development in the Office Depot Accounting Term Paper 2 Case Study Solution total properties, shows that the company is rather efficient in adding value to its properties through its profits. The development in properties reveals that the total value of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided data might be the analysis regarding the distribution of overall revenues of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sections with a potential growth to attain its future development goal.
PESTEL analysis could be conducted to learn the different external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a considerable impact on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. For that reason, it might be said that the overall political forces affecting Office Depot Accounting Term Paper 2 Case Study Help company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the Office Depot Accounting Term Paper 2 Case Study Analysis in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the demand for the publishing market. Along with it, the financial policies connected to the import of books affect the general business at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer choices.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and innovation along with the increase of digital publishing might lower the demand for the CMP products, if certain actions would not be taken quickly.
Ecological forces affecting Office Depot Accounting Term Paper 2 Case Study Solution includes the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing must not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be utilized to examine the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to draw in new entrants to the publishing market. The existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Danger of Alternative is high for the Chinese Publishing Industry. The replacement items for the released documents is the documents presented in the digital libraries on particular websites. The altering customer choices towards digital knowing increase the risk of replacement for the market.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Office Depot Accounting Term Paper 2 Case Study Solution include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive costs.
CMP runs 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 greatest market share in the Chinese publishing market. Significant competitors of Office Depot Accounting Term Paper 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 CMP easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is also among the prominent players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose need of its products in the market.
As the preferences are shifting towards digital publishing and the company require an instant solution to prevent the decreasing industry development. The company could likewise think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company must first gathers the information connected to the customer need, the prospective markets, the government policies and the information connected to the rivals presented in the market. After that, the company ought to decide one prospective section for its initial offering. It must collect research study that how it could separate its digital publishing from the existing competitors' items. The actions above the company need to go for the initial offering. The company must go for the other markets if the initial offering proves a success. In this method the company would be able to execute its digital publishing program.
Although, the development of the publishing market is decreasing given that 2008, showing a threat to the company's long term presence, however the scenario can be controlled by thinking about a development plan in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entryway in the new markets.