Rudy Wong Investment Advisor Case Study Solution and Analysis
Introduction
Rudy Wong Investment Advisor Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting information, processing information and communication services. Major company sections of the company include; books, regulars, consultancy and distribution. The company has a vast product portfolio and its significant products consist of books, periodicals, online media, exhibitions, research study reports and so on. Rudy Wong Investment Advisor Case Study Help has become a specialized details service provider and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
Although, Rudy Wong Investment Advisor Case Study Analysis has actually spent its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring particular obstacles to the publishing market in general and CMP in particular. These factors consist of;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The transformation of the macro markets have raised several 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 business could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Rudy Wong Investment Advisor Case Study Help has particular strengths that can be made use of to lower the dangers, conquer the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Rudy Wong Investment Advisor Case Study Solution in the publishing market i.e. 60 years permits the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and offer high worth to its customers.
• Strong monetary position enables the business to consider several advancement opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weaknesses which might increase restraints for the company in implementing its development program. The weak points of Rudy Wong Investment Advisor Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular expansion plans to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing industry is declining because 2008, affecting Rudy Wong Investment Advisor Case Study Help as well, but the growth could be revived by availing specific opportunities presented in the market. The market opportunities for CMP consist of;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has actually posed particular risks to Rudy Wong Investment Advisor Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Rudy Wong Investment Advisor Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors 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 using certain strategies like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the market together with presence of high competitors increases the risk of losing the customer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP might not be computed. It might be examined from the Appendix III that the yearly overall revenues of Rudy Wong Investment Advisor Case Study Solution during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the company is quite effective in bring in a big number of clients at a potential price.
In addition to it, the second graph which reveals the yearly growth in the Rudy Wong Investment Advisor Case Study Analysis total properties, shows that the company is rather effective in adding worth to its assets through its earnings. The development in assets reveals that the total value of the firm is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given information might be the analysis relating to the circulation of overall revenues of the company. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sections with a potential growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the different external forces impacting the performance of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. For that reason, it could be said that the total political forces impacting Rudy Wong Investment Advisor Case Study Help service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards reading helpful materials and so on. China has the highest population worldwide with a high population growth, showing the increasing variety of consumers of the Rudy Wong Investment Advisor Case Study Solution. The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques and so on. Enhancement of science and innovation in addition to the increase of digital publishing could minimize the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Rudy Wong Investment Advisor Case Study Analysis 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 non reusable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be used to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract brand-new entrants to the publishing market. The existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Danger of Alternative is high for the Chinese Publishing Market. The replacement products for the published files is the documents presented in the virtual libraries on particular sites. The changing customer choices towards digital learning increase the risk of substitution for the industry.
Competitive Rivalry.
Competitive competition 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. Along with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Rudy Wong Investment Advisor 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 total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Rudy Wong Investment Advisor Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same period, CIP releases comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and 2nd in various market segments, with a significant focus on instructional publications. CIP acts 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 could wean the marketplace share of Rudy Wong Investment Advisor Case Study Analysis quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise 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 likewise among the popular gamers in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future development. As the preferences are shifting towards digital publishing and the business require an immediate option to prevent the declining market growth. For that reason, intro of digital publishing could prove to be an immediate option with low quantity of danger for the business. The business might likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business must first collects the data connected to the customer need, the possible markets, the government regulations and the data associated with the rivals presented in the market. After that, the company must choose one possible sector for its initial offering. It ought to collect research study that how it could distinguish its digital publishing from the existing rivals' items. After all the steps above the company must go for the initial offering. The business should go for the other markets if the preliminary offering proves a success. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining since 2008, showing a threat to the company's long term existence, however the situation can be controlled by thinking about an advancement plan in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.
