One World One Accounting 3 Case Study Solution and Analysis
One World One Accounting 3 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting info, processing info and interaction services. Significant business sections of the company consist of; books, regulars, consultancy and distribution. The company has a vast product portfolio and its significant items include books, periodicals, online media, exhibits, research study reports etc. One World One Accounting 3 Case Study Solution has actually become a specialized information company and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
CMP has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing market in general and One World One Accounting 3 Case Study Help in specific. These aspects include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The change of the macro markets have raised several 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 company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
One World One Accounting 3 Case Study Solution has specific strengths that can be used to minimize the dangers, get rid of the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of One World One Accounting 3 Case Study Solution in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and offer high worth to its customers.
• Strong monetary position allows the company to think about numerous advancement opportunities without any fear of raising fund externally.
Along with the strengths, the business has specific weak points which could increase constraints for the company in executing its development program. The weak points of One World One Accounting 3 Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain expansion strategies to prevent its reliance over the Chinese markets to achieve long term development.
Although, the growth of the publishing industry is decreasing given that 2008, affecting One World One Accounting 3 Case Study Analysis too, but the growth might be revived by availing certain opportunities presented in the market. The marketplace opportunities for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast financial resources.
The altering macro patterns in the market and increasing competition in the publishing industry has actually positioned certain hazards to One World One Accounting 3 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of One World One Accounting 3 Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing specific strategies like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the industry along with existence of high competitors increases the danger of losing the client base.
The business has a rather competitive monetary efficiency. Due to absence of information, the financial ratios of CMP could not be calculated. Nevertheless, the total financial efficiency of the company might be analyzed by using the graphs given up the case Appendices. It could be evaluated from the Appendix III that the yearly total incomes of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of One World One Accounting 3 Case Study Help is growing and the business is rather efficient in attracting a a great deal of clients at a prospective cost.
Together with it, the 2nd graph which reveals the yearly growth in the One World One Accounting 3 Case Study Analysis total assets, shows that the business is quite efficient in including worth to its possessions through its revenues. The development in possessions shows that the overall value of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business using the provided information might be the analysis regarding the distribution of total incomes of the business. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation segments with a prospective growth to achieve its future development objective.
PESTEL analysis could be performed to learn the various external forces affecting the performance of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a considerable impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. It could be stated that the overall political forces impacting CMP organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering consumer preferences.
Technological forces affecting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and technology in addition to the increase of digital publishing could reduce the demand for the CMP products, if certain actions would not be taken quickly.
Ecological forces affecting One World One Accounting 3 Case Study Solution consists of the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to analyze the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to bring in new entrants to the publishing market. The presence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Alternative.
Risk of Replacement is high for the Chinese Publishing Market. The alternative products for the published files is the documents presented in the virtual libraries on particular websites. The altering customer preferences towards digital learning increase the hazard of replacement for the industry.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the One World One Accounting 3 Case Study Solution include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market 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 costs.
CMP operates in an extremely competitive market with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of One World One Accounting 3 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same duration, CIP publishes comparable type of books. For a large time period, CIP held the largest market share, and still ranks second and third in different market segments, with a significant focus on academic publications. CIP serves as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of One World One Accounting 3 Case Study Solution quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also among the prominent gamers in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
• 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 company to lose need of its products in the market.
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the company need an instant solution to avoid the declining market development. Intro of digital publishing could show to be an immediate service with low quantity of danger for the business. The company could also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business must first gathers the data related to the customer demand, the prospective markets, the government guidelines and the data associated with the rivals provided in the market. After that, the company should decide one prospective sector for its initial offering. It ought to gather research study that how it could separate its digital publishing from the existing competitors' items. The steps above the business need to go for the preliminary offering. The business needs to go for the other markets if the initial offering shows a success. In this method the business would be able to implement its digital publishing program.
Although, the development of the publishing market is decreasing because 2008, showing a risk to the business's long term existence, but the situation can be controlled by considering an advancement strategy in the future. The business could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.