Office Depot Accounting Term Paper Case Study Solution and Analysis
Office Depot Accounting Term Paper Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information company and a large extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Office Depot Accounting Term Paper Case Study Help has actually spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring particular challenges to the publishing industry in general and CMP in specific. These factors consist of;
• Entryway of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The transformation of the macro markets have raised numerous 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 capabilities of the business could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Office Depot Accounting Term Paper Case Study Solution has particular strengths that can be utilized to minimize the dangers, conquer the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Office Depot Accounting Term Paper Case Study Solution in the publishing market i.e. 60 years enables the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and offer high worth to its customers.
• Strong financial position allows the company to think about numerous advancement chances with no fear of raising fund externally.
Along with the strengths, the business has specific weaknesses which could increase restraints for the business in implementing its advancement program. The weaknesses of Office Depot Accounting Term Paper Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, 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 development. It ought to propose particular growth strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Although, the growth of the publishing market is declining considering that 2008, impacting Office Depot Accounting Term Paper Case Study Analysis also, but the development could be restored by availing certain opportunities presented in the market. The marketplace chances for CMP consist of;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its huge funds.
The changing macro trends in the market and increasing competition in the publishing industry has actually positioned certain dangers to Office Depot Accounting Term Paper Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of Office Depot Accounting Term Paper Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using certain techniques like aggressive promotion, quality products, etc.
• Entrance of new publishing companies in the industry in addition to presence of high competitors increases the threat of losing the customer base.
Due to absence of information, the monetary ratios of CMP might not be computed. It might be analyzed from the Appendix III that the annual overall revenues of Office Depot Accounting Term Paper Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the company is quite effective in drawing in a big number of consumers at a possible price.
Together with it, the second chart which shows the annual growth in the Office Depot Accounting Term Paper Case Study Solution total assets, shows that the company is quite effective in adding value to its assets through its profits. The growth in assets reveals that the overall worth of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the business using the offered information might be the analysis relating to the distribution of overall profits of the company. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sections with a potential development to attain its future development goal.
PESTEL analysis could be carried out to learn the various external forces impacting the performance of the business and the recent patterns in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a significant effect on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the general political forces impacting Office Depot Accounting Term Paper Case Study Help service are high. The federal government policies regarding 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 Case Study Help in particular includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the demand for the publishing market. Along with it, the financial policies related to the import of books impact the total organisation at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the changing consumer preferences.
Technological forces impacting the CMP include the technological improvement in the reading strategies and so on. Enhancement of science and innovation in addition to the increase of digital publishing might reduce the need for the CMP items, if specific actions would not be taken quickly.
Environmental forces impacting Office Depot Accounting Term Paper Case Study Solution 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 non reusable and the ink utilized while publishing should not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to bring in new entrants to the publishing market. Nevertheless, the existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The alternative items for the published files is the files presented in the virtual libraries on particular websites. The changing consumer choices towards digital learning 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 Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Office Depot Accounting Term Paper Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive costs.
CMP runs in an extremely competitive market with the presence of a great deal of competitors. The business 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 Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established 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 2nd and 3rd in numerous market sectors, with a major concentrate on educational publications. CIP serves 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 marketplace share of Office Depot Accounting Term Paper Case Study Solution easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Office Depot Accounting Term Paper Case Study Help and CIP. It is also one of the popular gamers in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose need of its items in the market.
With the deep analysis of the internal and external environment of the company along with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the business need an immediate solution to avoid the declining industry development. Intro of digital publishing could prove to be an immediate solution with low quantity of threat for the business. Nevertheless, the business could also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business should first collects the data related to the customer demand, the potential markets, the government guidelines and the data related to the competitors provided in the market. If the initial offering shows a success, the business needs to go for the other markets. In this method the business would be able to implement its digital publishing program.
The development of the publishing market is declining considering that 2008, revealing a hazard to the company's long term existence, but the circumstance can be managed by thinking about an advancement plan in the future. The company could consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.