Securities Lending After The Financial Crisis Case Study Solution and Analysis
Introduction
Securities Lending After The Financial Crisis Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized details provider and a big extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has actually invested its 60 years journey efficiently, being an effective publishing home, however, the altering macro market trends and forces bring specific difficulties to the publishing market in general and Securities Lending After The Financial Crisis Case Study Help in particular. These factors include;
• Entryway of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
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 situation? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Securities Lending After The Financial Crisis Case Study Analysis has certain strengths that can be made use of to minimize the risks, overcome the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Securities Lending After The Financial Crisis Case Study Analysis in the publishing market i.e. 60 years permits the business to supply high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and offer high worth to its customers.
• Strong monetary position enables the business to think about numerous development opportunities without any fear of raising fund externally.
Weak points
Together with the strengths, the company has certain weaknesses which might increase restrictions for the business in executing its development program. The weak points of Securities Lending After The Financial Crisis Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific growth strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is declining considering that 2008, affecting Securities Lending After The Financial Crisis Case Study Solution as well, however the growth could be revived by availing specific opportunities provided in the market. The marketplace chances for CMP include;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge financial resources.
Threats
The changing macro trends in the market and increasing competition in the publishing market has presented specific hazards to Securities Lending After The Financial Crisis Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of Securities Lending After The Financial Crisis Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing certain strategies like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the market along with existence of high competition increases the danger of losing the client base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP might not be computed. It might be evaluated from the Appendix III that the annual overall revenues of Securities Lending After The Financial Crisis Case Study Solution during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the business is rather efficient in drawing in a large number of customers at a possible price.
Together with it, the 2nd chart which reveals the yearly development in the Securities Lending After The Financial Crisis Case Study Analysis total assets, shows that the company is quite effective in including value to its assets through its incomes. The development in assets reveals that the overall value of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business using the given data could be the analysis relating to the distribution of overall earnings of the business. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other company segments with a prospective growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the various external forces affecting the efficiency of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. It might be said that the total political forces affecting CMP company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards checking out informative materials and so on. China has the greatest population on the planet with a high population growth, revealing the increasing number of customers of the Securities Lending After The Financial Crisis Case Study Analysis. Nevertheless, the consumer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Improvement of science and technology in addition to the increase of digital publishing might lower the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Securities Lending After The Financial Crisis Case Study Help includes the concerns of environmental 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 utilized while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be utilized to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in new entrants to the publishing industry. Nevertheless, the presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Danger of Alternative.
Threat of Replacement is high for the Chinese Publishing Market. The substitute products for the released documents is the files provided in the digital libraries on particular websites. The changing consumer choices towards digital learning increase the danger of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Securities Lending After The Financial Crisis Case Study Analysis consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry 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 documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Securities Lending After The Financial Crisis Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 circumstance.
Posts and telecommunication Press (PTP).
It was also established in the same period as Securities Lending After The Financial Crisis Case Study Help and CIP. It is also one of the popular gamers in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the company to lose need of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the company need an instant option to prevent the decreasing industry development. 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 must first collects the data connected to the consumer need, the potential markets, the federal government guidelines and the data related to the competitors provided in the market. After that, the company needs to choose one potential sector for its initial offering. It ought to gather research study that how it could differentiate its digital publishing from the existing competitors' products. The steps above the company should go for the preliminary offering. The company ought to go for the other markets if the preliminary offering shows a success. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing considering that 2008, showing a risk to the business's long term presence, however the situation can be managed by thinking about an advancement plan in the future. The company might consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entrance in the new markets.
