Santander Consumer Finance Case Study Solution and Analysis
Santander Consumer Finance Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information supplier and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Although, Santander Consumer Finance Case Study Help has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring particular challenges to the publishing market in general and CMP in particular. These elements include;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised a number of questions 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 strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Santander Consumer Finance Case Study Help has certain strengths that can be made use of to minimize the threats, get rid of the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Santander Consumer Finance Case Study Analysis in the publishing industry i.e. 60 years permits the company to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its danger and supply high value to its consumers.
• Strong monetary position allows the business to think about a number of advancement chances without any fear of raising fund externally.
Along with the strengths, the company has particular weaknesses which could increase restrictions for the company in implementing its advancement program. The weak points of Santander Consumer Finance Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain expansion strategies to prevent its reliance over the Chinese markets to attain long term development.
The development of the publishing market is decreasing given that 2008, impacting Santander Consumer Finance Case Study Analysis as well, but the growth could be restored by availing particular chances presented in the market. The market chances for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its vast financial resources.
The changing macro trends in the market and increasing competition in the publishing market has actually posed certain dangers to Santander Consumer Finance Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Santander Consumer Finance Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using certain methods like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the industry along with existence of high competition increases the danger of losing the consumer base.
Due to absence of information, the monetary ratios of CMP could not be computed. It might be examined from the Appendix III that the annual total incomes of Santander Consumer Finance Case Study Help during the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the company is rather efficient in attracting a big number of consumers at a potential cost.
Together with it, the 2nd chart which reveals the annual growth in the Santander Consumer Finance Case Study Analysis total properties, shows that the business is rather effective in adding worth to its properties through its revenues. The growth in properties reveals that the total worth of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the given data might be the analysis regarding the distribution of total incomes of the business. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sections with a possible growth to accomplish its future advancement goal.
PESTEL analysis could be conducted to learn the numerous external forces affecting the performance of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant effect on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. It could be stated that the total political forces affecting CMP service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional 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 improvement in the reading methods and so on. Enhancement of science and innovation along with the increase of digital publishing might reduce the need for the CMP items, if particular actions would not be taken quickly.
Environmental forces affecting Santander Consumer Finance Case Study Solution consists of the issues of environmental neighborhoods over the usage 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 must not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The replacement items for the published documents is the documents provided in the virtual libraries on specific sites. The changing consumer choices towards digital knowing increase the threat of substitution 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. In addition to it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Santander Consumer Finance Case Study Help consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall 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 buyers needs high quality documents at competitive prices.
CMP operates in a highly competitive market with the existence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Santander Consumer Finance Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 easily in the present market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Santander Consumer Finance Case Study Solution and CIP. It is also one of the prominent gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
• Competition in the market by CIP, who has prior concentrate 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 items in the market.
With the deep analysis of the internal and external environment of the company along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are moving towards digital publishing and the company require an instant option to prevent the decreasing market growth. Intro of digital publishing could show to be an immediate option with low amount of danger for the business. The company could likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business must first gathers the information related to the customer demand, the potential markets, the government regulations and the information related to the rivals presented in the market. If the initial offering proves a success, the business needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Although, the development of the publishing industry is declining given that 2008, revealing a hazard to the company's long term existence, but the scenario can be managed by considering 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 threat of failure for entryway in the new markets.