Risk Assessment Case Study Solution and Analysis
Intro
Risk Assessment Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services including; collecting details, processing details and communication services. Significant service sectors of the business consist of; books, periodicals, consultancy and distribution. The business has a large item portfolio and its significant items consist of books, periodicals, online media, exhibitions, research reports etc. Risk Assessment Case Study Solution has ended up being a specialized information service provider and a large detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Problems
CMP has invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring certain obstacles to the publishing industry in basic and Risk Assessment Case Study Analysis in specific. These elements consist of;
• Entrance of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement 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 situation? Do the long important experience, technical resources and the abilities of the business could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Risk Assessment Case Study Solution has certain strengths that can be utilized to reduce the hazards, overcome the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Risk Assessment Case Study Solution in the publishing market i.e. 60 years permits the business to offer high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its risk and supply high value to its consumers.
• Strong financial position enables the company to consider a number of advancement opportunities without any worry of raising fund externally.
Weak points
Together with the strengths, the business has specific weaknesses which might increase restraints for the company in executing its development program. The weaknesses of Risk Assessment Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose particular expansion strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing market is decreasing since 2008, affecting Risk Assessment Case Study Help as well, but the growth could be restored by availing certain chances provided in the market. The marketplace chances for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong client 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 vast financial resources.
Threats
The changing macro patterns in the market and increasing competitors in the publishing market has actually posed certain dangers to Risk Assessment Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Risk Assessment Case Study Analysis due to the consumer shift towards digital 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 get a strong customer base by utilizing specific strategies like aggressive promo, quality items, and so on
• Entrance of new publishing companies in the market in addition to existence of high competition increases the risk of losing the client base.
Financial Analysis.
The business has a rather competitive monetary efficiency. Due to absence of data, the financial ratios of CMP might not be determined. The general monetary performance of the company could be analyzed by utilizing the charts provided in the case Appendices. It might be analyzed from the Appendix III that the annual total earnings of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of Risk Assessment Case Study Help is growing and the company is quite effective in bring in a a great deal of consumers at a prospective rate.
In addition to it, the second chart which reveals the yearly development in the Risk Assessment Case Study Help total possessions, shows that the company is quite effective in including value to its properties through its earnings. The development in assets reveals that the overall worth of the company is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company utilizing the provided information might be the analysis relating to 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 business sectors with a potential growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the different external forces impacting the performance of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the total political forces affecting Risk Assessment Case Study Solution company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the Risk Assessment Case Study Help in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine effect the demand for the publishing market. Along with it, the financial policies connected to the import of books impact the total service at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards reading informative materials etc. China has the highest population on the planet with a high population development, showing the increasing variety of customers of the Risk Assessment Case Study Analysis. The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Improvement of science and technology along with the increase of digital publishing might minimize the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Risk Assessment Case Study Solution includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be used to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in new entrants to the publishing market. The presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Threat of Replacement is high for the Chinese Publishing Market. The alternative products for the released files is the files provided in the digital libraries on specific websites. The altering customer preferences towards digital knowing increase the danger of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Risk Assessment Case Study Help include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling 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 market saturation, the buyers requires high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Risk Assessment Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 market share of CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the same duration as Risk Assessment Case Study Help and CIP. It is also one of the popular players in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the business need an immediate solution to prevent the declining market growth. The business could also think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company ought to first collects the information related to the customer demand, the prospective markets, the government policies and the data related to the competitors presented in the market. If the initial offering shows a success, the company should go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining considering that 2008, revealing a hazard to the company's long term existence, but the circumstance can be controlled by considering an advancement plan in the future. The company could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
