Sec Versus Goldman Sachs A Case Study Solution and Analysis
Introduction
Sec Versus Goldman Sachs A 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 info service provider and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
Although, Sec Versus Goldman Sachs A Case Study Help has spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing market in general and CMP in particular. These aspects consist of;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised several 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 utilized 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
Sec Versus Goldman Sachs A Case Study Help has particular strengths that can be utilized to lower the hazards, get rid of the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Sec Versus Goldman Sachs A Case Study Analysis in the publishing market i.e. 60 years enables the business to supply high quality products at a lower cost using its previous experiences.
• The technical resources and abilities created by its successful journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its threat and offer high worth to its consumers.
• Strong financial position enables the company to consider a number of advancement chances with no worry of raising fund externally.
Weak points
Along with the strengths, the business has specific weaknesses which might increase restraints for the company in implementing its advancement program. The weaknesses of Sec Versus Goldman Sachs A Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain expansion plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is declining given that 2008, affecting Sec Versus Goldman Sachs A Case Study Help also, however the growth could be revived by availing specific opportunities presented in the market. The market chances for CMP include;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its vast financial resources.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has actually positioned particular risks to Sec Versus Goldman Sachs A Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of Sec Versus Goldman Sachs A Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors 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 techniques like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the market along with presence of high competition increases the threat of losing the consumer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the annual total revenues of Sec Versus Goldman Sachs A Case Study Help throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of CMP is growing and the business is rather effective in bring in a large number of consumers at a potential rate.
In addition to it, the second chart which shows the annual development in the Sec Versus Goldman Sachs A Case Study Solution overall assets, reveals that the company is rather effective in including value to its possessions through its profits. The growth in assets reveals that the overall worth of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered information might be the analysis relating to the circulation of total earnings of the company. Huge 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 company might move towards other service sections with a prospective development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces affecting the efficiency of the company and the current trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the general political forces affecting Sec Versus Goldman Sachs A Case Study Analysis service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards checking out informative materials etc. China has the highest population in the world with a high population growth, showing the increasing variety of customers of the Sec Versus Goldman Sachs A Case Study Solution. However, the consumer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods and so on. Improvement of science and technology together with the increase of digital publishing might lower the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Sec Versus Goldman Sachs A Case Study Solution consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to evaluate the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to bring in new entrants to the publishing market. The presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Threat of Replacement is high for the Chinese Publishing Industry. The alternative products for the released files is the documents provided in the virtual libraries on particular websites. The altering consumer preferences towards digital learning increase the danger of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Sec Versus Goldman Sachs A Case Study Solution consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling 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 market saturation, the buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Sec Versus Goldman Sachs A 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 might wean the market share of CMP quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is also one of the prominent gamers in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
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 advancement. As the choices are shifting towards digital publishing and the business require an instant solution to avoid the decreasing industry growth. Introduction of digital publishing could show to be an instant service with low quantity of risk for the company. The business could likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company should initially collects the information associated with the customer need, the prospective markets, the government guidelines and the data related to the rivals provided in the market. After that, the business needs to choose one possible sector for its initial offering. It must gather research that how it might distinguish its digital publishing from the existing competitors' products. After all the actions above the company must go for the initial offering. The company ought to go for the other markets if the initial offering shows a success. In this method the business would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing since 2008, revealing a hazard to the company's long term existence, however the situation can be controlled by thinking about a development strategy in the future. The business might think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
