Single Stock Futures 3 Case Study Solution and Analysis
Introduction
Single Stock Futures 3 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting information, processing details and communication services. Major business sections of the company consist of; books, regulars, consultancy and distribution. The company has a huge item portfolio and its major products consist of books, periodicals, online media, exhibitions, research reports and so on. Single Stock Futures 3 Case Study Help has actually ended up being a specialized details service provider and a big thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, Single Stock Futures 3 Case Study Solution has spent its 60 years journey smoothly, being an effective publishing house, however, the changing macro market patterns and forces bring certain difficulties to the publishing industry in basic and CMP in specific. These elements include;
• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this scenario? 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 business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Single Stock Futures 3 Case Study Solution has particular strengths that can be made use of to lower the dangers, overcome the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Single Stock Futures 3 Case Study Help in the publishing market i.e. 60 years permits the business to supply high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and offer high value to its customers.
• Strong financial position allows the company to think about a number of advancement chances with no worry of raising fund externally.
Weak points
Along with the strengths, the business has specific weak points which might increase restrictions for the business in implementing its development program. The weaknesses of Single Stock Futures 3 Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular expansion plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is decreasing because 2008, impacting Single Stock Futures 3 Case Study Help as well, but the development might be revived by availing particular opportunities presented in the market. The marketplace chances for CMP consist of;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast financial resources.
Hazards
The altering macro trends in the market and increasing competition in the publishing industry has actually presented specific hazards to Single Stock Futures 3 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Single Stock Futures 3 Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific methods like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the market together with existence of high competition increases the hazard of losing the consumer base.
Financial Analysis.
The business has a rather competitive monetary efficiency. Due to absence of information, the financial ratios of CMP could not be determined. However, the general financial performance of the business could be evaluated by using the graphs given in the case Appendices. It could be examined from the Appendix III that the yearly total profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of Single Stock Futures 3 Case Study Analysis is growing and the company is rather efficient in drawing in a a great deal of clients at a potential rate.
In addition to it, the 2nd graph which reveals the yearly growth in the Single Stock Futures 3 Case Study Help overall possessions, shows that the business is quite effective in adding worth to its properties through its earnings. The growth in properties shows that the total worth of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the given information could be the analysis regarding the distribution of total revenues of the business. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service segments with a potential development to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to find out the different external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it might be said that the general political forces impacting Single Stock Futures 3 Case Study Analysis business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards checking out helpful products etc. China has the highest population worldwide with a high population development, showing the increasing variety of customers of the Single Stock Futures 3 Case Study Help. The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods and so on. Enhancement of science and innovation together with the increase of digital publishing might lower the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Single Stock Futures 3 Case Study Analysis includes the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal guidelines 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 Regulation 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be utilized to examine the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to attract new entrants to the publishing industry. However, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Danger of Substitution is high for the Chinese Publishing Industry. The alternative items for the published files is the documents presented in the virtual libraries on specific websites. The altering consumer preferences towards digital knowing increase the danger of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence 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. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Single Stock Futures 3 Case Study Solution consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Single Stock Futures 3 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 might wean the market share of CMP quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise one of the popular gamers in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external 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 moving towards digital publishing and the company need an immediate option to avoid the decreasing industry growth. Intro of digital publishing might prove to be an immediate option with low quantity of threat for the business. The company could likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company should first collects the data related to the customer need, the prospective markets, the federal government guidelines and the data connected to the competitors provided in the market. After that, the company ought to decide one prospective segment for its preliminary offering. It ought to collect research that how it could distinguish its digital publishing from the existing competitors' items. After all the actions above the company need to opt for the preliminary offering. If the initial offering proves a success, the company needs to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing given that 2008, revealing a danger to the company's long term existence, however the circumstance can be managed by thinking about a development strategy in the future. The business could think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entrance in the brand-new markets.
