One World One Accounting Case Study Solution and Analysis
Intro
One World One Accounting Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized info provider and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring particular obstacles to the publishing industry in basic and One World One Accounting Case Study Analysis in specific. These aspects consist of;
• Entryway of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the business could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
One World One Accounting Case Study Help has certain strengths that can be made use of to minimize the hazards, conquer the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of One World One Accounting Case Study Analysis in the publishing market i.e. 60 years allows the company to offer high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and offer high value to its clients.
• Strong financial position allows the company to think about numerous development chances without any worry of raising fund externally.
Weak points
Along with the strengths, the business has particular weaknesses which might increase restrictions for the company in executing its advancement program. The weak points of One World One Accounting Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific expansion strategies to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is declining given that 2008, impacting One World One Accounting Case Study Solution too, but the growth could be revived by availing specific opportunities presented in the market. The marketplace opportunities for CMP include;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large funds.
Hazards
The changing macro trends in the market and increasing competition in the publishing market has postured specific threats to One World One Accounting Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of One World One Accounting Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using certain strategies like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the industry along with existence of high competition increases the risk of losing the customer base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to absence of data, the financial ratios of CMP could not be computed. Nevertheless, the total financial performance of the company might be evaluated by using the charts given up the case Appendices. It could be evaluated from the Appendix III that the annual total earnings of CMP during the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of One World One Accounting Case Study Analysis is growing and the company is rather effective in bring in a a great deal of clients at a prospective rate.
Along with it, the second chart which shows the annual development in the One World One Accounting Case Study Solution overall assets, reveals that the company is rather efficient in adding value to its possessions through its incomes. The development in assets shows that the total worth of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business using the offered information might be the analysis regarding the circulation of total revenues of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company sectors with a potential development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the numerous external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. For that reason, it might be said that the general political forces affecting One World One Accounting Case Study Solution service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the One World One Accounting Case Study Help in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces combine effect the demand for the publishing market. Together with it, the financial policies related to the import of books impact the total business at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and technology along with the increase of digital publishing could reduce the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting One World One Accounting Case Study Help includes the issues of ecological communities 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 ought to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be utilized to examine the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to bring in brand-new entrants to the publishing industry. The presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Hazard of Alternative.
Danger of Replacement is high for the Chinese Publishing Market. The alternative items for the released files is the files presented in the virtual libraries on particular sites. The changing consumer choices towards digital knowing increase the risk of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. 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 Provider.
The significant providers of the One World One Accounting Case Study Analysis include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence 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 competitors of One World One Accounting Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it could 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 current market circumstance.
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 company scale. It is also among the popular gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the business need an immediate service to avoid the declining industry growth. For that reason, introduction of digital publishing could show to be an immediate option with low quantity of threat for the business. The company might also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business needs to first gathers the information related to the consumer need, the possible markets, the federal government guidelines and the information connected to the competitors presented in the market. After that, the company should decide one prospective section for its initial offering. It must collect research study that how it might distinguish its digital publishing from the existing competitors' products. The actions above the company must go for the preliminary offering. The business needs to go for the other markets if the initial offering shows a success. In this way the business would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining because 2008, showing a hazard to the company's long term existence, but the circumstance can be controlled by considering an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.
