Office Depot Accounting Term Paper Case Study Solution and Analysis
Introduction
Office Depot Accounting Term Paper Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info supplier and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, Office Depot Accounting Term Paper Case Study Solution has actually invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market trends and forces bring specific obstacles to the publishing market in basic and CMP in particular. These aspects consist of;
• Entryway of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The improvement 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 scenario? Do the long valuable experience, technical resources and the abilities of the company could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Office Depot Accounting Term Paper Case Study Help has specific strengths that can be utilized to minimize the hazards, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Office Depot Accounting Term Paper Case Study Help in the publishing market i.e. 60 years enables the business to supply high quality products at a lower expense using its previous experiences.
• The technical resources and abilities produced by its successful journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and offer high worth to its clients.
• Strong monetary position allows the business to consider several development opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has specific weaknesses which might increase constraints for the company in executing its development program. The weaknesses of Office Depot Accounting Term Paper Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose particular expansion plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is decreasing considering that 2008, impacting Office Depot Accounting Term Paper Case Study Analysis as well, but the development could be revived by availing particular chances presented in the market. The market opportunities for CMP include;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its vast financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has actually presented certain dangers to Office Depot Accounting Term Paper Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Office Depot Accounting Term Paper Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific strategies like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the market along with existence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
The business has a rather competitive monetary efficiency. Due to absence of data, the financial ratios of CMP could not be calculated. The overall financial efficiency of the business might be examined by utilizing the graphs provided in the case Appendices. It could be analyzed from the Appendix III that the yearly total incomes of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of Office Depot Accounting Term Paper Case Study Analysis is growing and the company is quite efficient in attracting a large number of consumers at a potential rate.
Together with it, the second chart which shows the annual growth in the Office Depot Accounting Term Paper Case Study Solution overall assets, reveals that the business is rather efficient in including worth to its possessions through its revenues. The growth in possessions shows that the total value of the company is also increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the company using the offered data might be the analysis regarding the circulation of total profits of the company. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other company segments with a possible growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the numerous external forces affecting the efficiency of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. It could be said that the overall political forces impacting CMP service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Enhancement of science and innovation in addition to the increase of digital publishing could minimize the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Office Depot Accounting Term Paper Case Study Analysis includes the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be utilized to analyze the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to draw in brand-new entrants to the publishing market. However, the presence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Substitution.
Risk of Alternative is high for the Chinese Publishing Market. The substitute products for the published documents is the documents provided in the digital libraries on certain sites. The changing consumer preferences towards digital knowing increase the hazard of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Office Depot Accounting Term Paper Case Study Solution include the providers of the paper for releasing files. As CMP is the largest 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 existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Office Depot Accounting Term Paper Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it might 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 present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Office Depot Accounting Term Paper Case Study Analysis and CIP. It is likewise one of the popular players in the publishing market with an annual overall 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.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the company to lose demand of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the business require an immediate service to prevent the declining market development. The company might also think about 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 first gathers the data connected to the consumer demand, the potential markets, the federal government regulations and the data associated with the competitors provided in the market. After that, the business needs to decide one potential segment for its initial offering. It needs to collect research that how it might separate its digital publishing from the existing rivals' products. After all the steps above the company must go for the preliminary offering. The business should go for the other markets if the initial offering shows a success. In this way the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining since 2008, revealing a hazard to the business's long term existence, however the scenario can be managed by considering a development strategy in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
