Ponce De Leon Confidential Instructions For Donald Sanger Chief Financial Officer Panama Studios Case Study Solution and Analysis
Ponce De Leon Confidential Instructions For Donald Sanger Chief Financial Officer Panama Studios Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information provider and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring specific challenges to the publishing market in basic and Ponce De Leon Confidential Instructions For Donald Sanger Chief Financial Officer Panama Studios Case Study Solution in specific. These aspects include;
• Entryway of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The change of the macro markets have raised numerous 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 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?
Ponce De Leon Confidential Instructions For Donald Sanger Chief Financial Officer Panama Studios Case Study Analysis has specific strengths that can be made use of to lower the threats, conquer the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Ponce De Leon Confidential Instructions For Donald Sanger Chief Financial Officer Panama Studios Case Study Analysis in the publishing market i.e. 60 years allows the company to offer 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 product portfolioof CMP helps it to diversify its risk and offer high worth to its customers.
• Strong financial position enables the company to consider several development chances without any fear of raising fund externally.
Along with the strengths, the business has certain weak points which might increase restrictions for the business in implementing its advancement program. The weak points of Ponce De Leon Confidential Instructions For Donald Sanger Chief Financial Officer Panama Studios Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain growth strategies to avoid its reliance over the Chinese markets to achieve long term development.
The development of the publishing market is declining given that 2008, affecting Ponce De Leon Confidential Instructions For Donald Sanger Chief Financial Officer Panama Studios Case Study Help as well, however the growth might be revived by availing particular opportunities provided in the market. The market chances for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its huge funds.
The altering macro patterns in the market and increasing competitors in the publishing industry has actually positioned certain dangers to Ponce De Leon Confidential Instructions For Donald Sanger Chief Financial Officer Panama Studios Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Ponce De Leon Confidential Instructions For Donald Sanger Chief Financial Officer Panama Studios Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing certain methods like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the market together with existence of high competitors increases the risk of losing the consumer base.
The company has a quite competitive financial performance. Due to absence of data, the monetary ratios of CMP could not be calculated. The general financial performance of the company might be evaluated by utilizing the charts given in the case Appendices. It might be analyzed from the Appendix III that the annual total earnings of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of Ponce De Leon Confidential Instructions For Donald Sanger Chief Financial Officer Panama Studios Case Study Help is growing and the company is rather efficient in attracting a large number of consumers at a potential rate.
Together with it, the 2nd chart which reveals the annual growth in the Ponce De Leon Confidential Instructions For Donald Sanger Chief Financial Officer Panama Studios Case Study Solution overall assets, reveals that the company is quite effective in adding value to its properties through its earnings. The development in properties shows that the overall value of the firm is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided information might be the analysis relating to the circulation of total incomes of the business. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sectors with a potential development to achieve its future advancement goal.
PESTEL analysis might be conducted to learn the different external forces impacting the efficiency of the business and the current patterns in the external environment of the business. A quick 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 federal government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces impacting Ponce De Leon Confidential Instructions For Donald Sanger Chief Financial Officer Panama Studios Case Study Solution service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer choices.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Improvement of science and technology along with the rise of digital publishing could lower the need for the CMP products, if certain actions would not be taken soon.
Environmental forces impacting Ponce De Leon Confidential Instructions For Donald Sanger Chief Financial Officer Panama Studios Case Study Solution consists of the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing should not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to analyze the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in new entrants to the publishing industry. The existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The replacement products for the released documents is the documents provided in the virtual libraries on certain websites. The changing consumer preferences towards digital knowing increase the threat of substitution for the industry.
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 competition for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Ponce De Leon Confidential Instructions For Donald Sanger Chief Financial Officer Panama Studios Case Study Analysis consist of the providers of the paper for publishing 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 Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive prices.
CMP runs in a highly competitive market with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Ponce De Leon Confidential Instructions For Donald Sanger Chief Financial Officer Panama Studios Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the same duration, CIP releases similar type of books. For a big period, CIP held the largest market share, and still ranks 3rd and second in various market segments, with a major concentrate on instructional publications. CIP serves as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of Ponce De Leon Confidential Instructions For Donald Sanger Chief Financial Officer Panama Studios Case Study Analysis easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is likewise among the prominent players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the business to lose demand of its items in the market.
As the preferences are shifting towards digital publishing and the company require an instant solution to avoid the declining market development. The company could likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business should initially collects the information related to the customer need, the prospective markets, the government guidelines and the data associated with the competitors presented in the market. After that, the company needs to choose one prospective sector for its preliminary offering. It should collect research study that how it might distinguish its digital publishing from the existing rivals' products. After all the steps above the company need to choose the preliminary offering. The company needs to go for the other markets if the preliminary offering proves a success. In this way the business would have the ability to execute its digital publishing program.
Although, the development of the publishing industry is declining because 2008, revealing a danger to the company's long term presence, but the situation can be managed by thinking about a development strategy in the future. The business could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entrance in the new markets.