One World One Accounting 3 Case Study Solution and Analysis
One World One Accounting 3 Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP provides a number of services consisting of; collecting information, processing information and interaction services. Significant business segments of the company consist of; books, periodicals, consultancy and circulation. The company has a large item portfolio and its significant products include books, regulars, online media, exhibitions, research reports etc. One World One Accounting 3 Case Study Solution has ended up being a specialized information provider and a large thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, One World One Accounting 3 Case Study Solution has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market trends and forces bring particular challenges to the publishing industry in basic and CMP in particular. These elements consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised numerous questions 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 capabilities of the company could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
One World One Accounting 3 Case Study Analysis has specific strengths that can be used to lower the dangers, conquer the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of One World One Accounting 3 Case Study Help in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and provide high value to its consumers.
• Strong financial position allows the business to think about a number of development opportunities without any worry of raising fund externally.
Along with the strengths, the business has specific weak points which could increase restraints for the business in executing its advancement program. The weak points of One World One Accounting 3 Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, 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 specific expansion strategies to avoid its reliance over the Chinese markets to achieve long term development.
Although, the growth of the publishing industry is declining because 2008, impacting One World One Accounting 3 Case Study Help as well, but the growth might be restored by availing particular opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company could also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast funds.
The changing macro trends in the market and increasing competition in the publishing market has presented certain dangers to One World One Accounting 3 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in declining market share of One World One Accounting 3 Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using particular methods like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing companies in the industry along with presence of high competitors increases the risk of losing the customer base.
The company has a quite competitive financial efficiency. Due to absence of data, the financial ratios of CMP might not be determined. Nevertheless, the total monetary performance of the company might be evaluated by using the graphs given up the case Appendices. It might be analyzed from the Appendix III that the annual overall revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of One World One Accounting 3 Case Study Solution is growing and the business is rather efficient in bring in a a great deal of clients at a possible rate.
Along with it, the 2nd chart which shows the annual growth in the One World One Accounting 3 Case Study Solution total properties, reveals that the company is rather effective in including value to its possessions through its revenues. The development in assets reveals that the total worth of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business using the offered information could be the analysis concerning the distribution of overall earnings of the company. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation segments with a potential growth to attain its future development objective.
PESTEL analysis might be performed to learn the numerous external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is given 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, therefore, the publishing sector is extremely supervised and guided 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 federal government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the One World One Accounting 3 Case Study Solution in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the need for the publishing market. Together 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 consumer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards reading helpful materials etc. China has the greatest population in the world with a high population development, revealing the increasing variety of consumers of the One World One Accounting 3 Case Study Help. However, the consumer preferences are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the changing customer preferences.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Improvement of science and technology in addition to the rise of digital publishing might lower the need for the CMP products, if certain actions would not be taken soon.
Environmental forces affecting One World One Accounting 3 Case Study Analysis includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be harmful for the environment.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to analyze the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to draw in new entrants to the publishing industry. The existence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Substitution.
Risk of Substitution is high for the Chinese Publishing Market. The alternative products for the published files is the files presented in the digital libraries on certain sites. The altering consumer preferences towards digital knowing increase the threat of replacement for the industry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the One World One Accounting 3 Case Study Help include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive prices.
CMP operates in an extremely 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. Significant competitors of One World One Accounting 3 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same duration, CIP publishes similar type of books. For a big period, CIP held the biggest market share, and still ranks second and 3rd in numerous market sectors, with a significant focus on academic publications. CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of One World One Accounting 3 Case Study Analysis easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is also one of the prominent gamers in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Use of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service 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 together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are moving towards digital publishing and the business need an immediate option to prevent the declining industry development. Intro of digital publishing might show to be an immediate solution with low amount of danger for the company. The company might 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 ought to initially gathers the data connected to the consumer demand, the possible markets, the government policies and the data connected to the rivals presented in the market. After that, the business needs to choose one prospective section for its initial offering. It should collect research that how it might separate its digital publishing from the existing competitors' items. The actions above the business need to go for the initial offering. The company ought to 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.
The development of the publishing industry is decreasing because 2008, revealing a threat to the company's long term presence, however the circumstance can be managed by considering a development plan in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entryway in the new markets.