Santander Consumer Finance Case Study Solution and Analysis
Santander Consumer Finance Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a number of services including; collecting info, processing information and interaction services. Significant organisation sections of the business consist of; books, periodicals, consultancy and distribution. The business has a vast item portfolio and its significant products include books, periodicals, online media, exhibitions, research reports and so on. Santander Consumer Finance Case Study Solution has become a specialized details provider and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market patterns and forces bring specific challenges to the publishing market in general and Santander Consumer Finance Case Study Help in particular. These factors consist of;
• Entrance of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The change 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 circumstance? Do the long important experience, technical resources and the abilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Santander Consumer Finance Case Study Solution has certain strengths that can be utilized to decrease the dangers, conquer the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Santander Consumer Finance Case Study Solution in the publishing industry i.e. 60 years enables the business to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and provide high value to its consumers.
• Strong monetary position permits the company to think about numerous development chances with no fear of raising fund externally.
In addition to the strengths, the business has specific weaknesses which might increase restraints for the company in executing its advancement program. The weak points of Santander Consumer Finance Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods 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 dependence over the Chinese markets to attain long term growth.
The growth of the publishing industry is declining since 2008, affecting Santander Consumer Finance Case Study Solution as well, however the growth could be restored by availing certain opportunities presented in the market. The market opportunities for CMP include;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its vast funds.
The altering macro patterns in the market and increasing competitors in the publishing market has actually presented certain hazards to Santander Consumer Finance Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of Santander Consumer Finance Case Study Solution due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing particular methods like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the industry along with presence of high competition increases the hazard of losing the customer base.
Due to lack of data, the monetary ratios of CMP could not be computed. It might be analyzed from the Appendix III that the yearly total incomes of Santander Consumer Finance Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of CMP is growing and the business is rather efficient in bring in a large number of customers at a potential price.
Together with it, the 2nd chart which shows the annual development in the Santander Consumer Finance Case Study Help total assets, reveals that the business is rather efficient in adding worth to its possessions through its revenues. The development in assets reveals that the total value of the firm is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the company utilizing the given data could be the analysis relating to the distribution of overall incomes of the business. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business sections with a prospective growth to achieve its future development objective.
PESTEL analysis might be performed to learn the various external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a significant influence on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. For that reason, it could be said that the general political forces affecting Santander Consumer Finance Case Study Solution 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 Santander Consumer Finance Case Study Help in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the need for the publishing market. In addition to it, the economic policies associated with the import of books affect the total organisation at CPM. China's economic conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing consumer preferences.
Technological forces impacting the CMP include the technological development in the reading techniques and so on. Enhancement of science and innovation along with the rise of digital publishing could reduce the demand for the CMP products, if specific actions would not be taken soon.
Ecological forces impacting Santander Consumer Finance Case Study Help consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing needs to not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Risk of Substitution is high for the Chinese Publishing Industry. The substitute products for the published files is the documents presented in the digital libraries on particular websites. The altering consumer preferences towards digital knowing increase the hazard of alternative for the industry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Santander Consumer Finance Case Study Solution include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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.
CMP runs in a highly 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. Major competitors of Santander Consumer Finance Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 market share of CMP easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same duration as Santander Consumer Finance Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the business to lose demand of its items in the market.
With the deep analysis of the external and internal environment of the business along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the company need an instant solution to prevent the decreasing industry development. For that reason, intro of digital publishing could prove to be an immediate option with low quantity of threat for the business. However, the business might also think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company should initially collects the data related to the customer need, the possible markets, the government guidelines and the information related to the rivals presented in the market. If the initial offering shows a success, the business ought to go for the other markets. In this way the business would be able to execute its digital publishing program.
The growth of the publishing market is declining because 2008, revealing a risk to the business's long term existence, 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 execute its development program at immediate basis and to prevent the threat of failure for entryway in the new markets.